What Is Net Metering? How NJ Homeowners Get Paid for Solar
May 9, 20268 Essential Tips Before Going Solar — What Every Homeowner Needs to Know
May 9, 2026New Jersey’s SuSI program — the Successor Solar Incentive — is one of the most valuable solar income programs in the country and one of the least understood. I’ve been installing solar in NJ for 15 years and I still run into homeowners who had a system installed years ago and are only now finding out they were supposed to be earning SREC payments the whole time. Their installer never registered them. That money is gone forever. I want to make sure that doesn’t happen to you.
For New Jersey homeowners: The SuSI program is the primary financial reason NJ is still one of the best states to go solar after the federal residential tax credit expired December 31, 2025. It’s available to anyone who owns a solar system in NJ — not to people who lease. Registration is time-sensitive. Commercial property owners and non-profits should also read the section below on commercial rates and the 30% federal incentive that still applies to them through 2027.
What the SuSI Program Is — and Why It Exists
SuSI stands for Successor Solar Incentive. It’s the program New Jersey launched in 2021 to replace the original legacy SREC market, which had volatile pricing. The SuSI program has two tracks: the ADI (Administratively Determined Incentive) for residential and small commercial net-metered systems, and the CSI (Competitive Solar Incentive) for large commercial and grid-scale projects.
The program exists because NJ state law requires utilities and electricity suppliers to source a set percentage of the power they sell from renewable sources — specifically solar. When they don’t generate enough solar themselves, they have to buy certificates from people who do. That buyer is you, the NJ solar homeowner, if you own your panels.
Every time your system generates one megawatt-hour of electricity — 1,000 kilowatt-hours — you earn one SREC-II certificate. The utility or supplier buys it from you to satisfy their legal obligation. You get paid. That’s the program.
What Are NJ SuSI SREC-IIs Worth Right Now?
The ADI rate — the fixed payment per SREC-II for residential net-metered systems — is set by the NJ Board of Public Utilities. As of March 2026, the residential ADI rate is $85 per SREC-II. The BPU reduced it from $85 in March 2026 as part of a scheduled 10% step-down. Once your system is registered, your assigned rate is locked in for the full 15-year program life — you’re protected from further rate reductions on your existing system.
Commercial rooftop and carport systems earn a higher rate: $110 per SREC-II. If you’re a business owner or own commercial real estate in NJ, the economics of solar are particularly compelling right now.
For non-profits, houses of worship, and tax-exempt organizations: The 30% federal ITC (Section 48) is still available for commercial and non-profit installations through December 31, 2027, via the IRA’s elective payment (direct pay) provisions. A non-profit that installs solar before end of 2027 can receive a 30% cash grant from the IRS — even though they don’t pay taxes. That’s a significant incentive that most non-profit leaders don’t know about. If you’re on a board of a church, temple, mosque, or other tax-exempt organization, this is worth exploring now.
How Many SREC-IIs Will My System Generate?
A 10-kilowatt solar system in NJ produces about 11,000 to 12,500 kilowatt-hours per year depending on your roof orientation, shading, and location in the state. That’s 11 to 12.5 SREC-IIs per year. At $85 each, a 10kW system earns roughly $935–$1,062 per year in SuSI income.
A 7kW system — common for smaller NJ homes — produces about 7,700 to 8,750 kWh per year, or roughly 7–9 SREC-IIs per year, generating $595–$765 per year.
Over the full 15-year program life, a 10kW system at $85/SREC-II generates approximately $15,300–$17,000 in total SuSI income. That’s a meaningful contribution to your payback calculation, on top of your electric bill savings.
How to Register and Get Paid
SREC-IIs don’t just show up automatically. Your system has to be registered in GATS — the PJM Generation Attribute Tracking System — which is the registry that records and tracks solar certificates across the Mid-Atlantic region. Registration requires documentation: your inverter serial numbers, utility interconnection approval, and other install details.
Your installer should handle GATS registration as part of the installation job. I treat it as a standard deliverable — I provide every homeowner with their GATS account info and walk them through the first quarterly SREC submission. If your installer doesn’t mention SuSI registration at all, ask about it explicitly before you sign a contract.
Once you’re registered, you can sell your SREC-IIs through:
- A broker or aggregator — they handle market transactions and send you quarterly checks. They take a commission, typically 5–15%. Easiest option for most homeowners.
- Direct submission — for homeowners who want to manage their own account. Requires quarterly attention but saves the commission.
Ownership Matters: Why Leases Cost You the SuSI Income
This is one of the most important financial points in this entire post: if you lease your solar panels or sign a PPA, you do not get the SuSI SREC-II payments. The leasing company owns the system. They get the certificates. You get a discounted electricity rate. That’s it.
In NJ, that giveaway is substantial. At $85/SREC-II with 12 certificates per year on a 10kW system, you’re handing the leasing company roughly $1,020/year for 15 years — about $15,300 in income that would have been yours if you owned the system. Own your system. Cash or loan.
The Payback Calculation With SuSI Income Included
Let’s use a 10kW system at $26,500 installed:
- Electric bill savings year 1: $2,400–$2,800
- SuSI SREC-II income year 1: ~$1,020 (12 × $85)
- Total year-one financial return: ~$3,420–$3,820
- Simple payback period: $26,500 ÷ $3,600 ≈ 7.4 years
Over 25 years, accounting for utility rate increases of 4–5% annually and 15 years of SuSI income, total savings run $85,000–$100,000 for a 10kW NJ system.
Common SuSI Registration Mistakes to Avoid
Missing the registration window. SREC-IIs can only be earned from the date of GATS registration onward. If your system was commissioned in March and your installer didn’t get you registered until August, you lost five months of certificates — permanently. Push your installer to complete registration within 60 days of interconnection approval.
Not submitting quarterly. SREC-IIs are earned quarterly and must be submitted for payment. Many SREC brokers handle this automatically, but if you’re managing it yourself, mark your calendar.
Accepting a lease because it seemed simpler. Leases are marketed as “hassle-free” partly because they remove SREC paperwork from your plate — by taking all the SuSI income for themselves. The hassle of registering and selling through a broker is minimal. The income is not.
Choosing an installer who doesn’t know the SuSI program. I’ve met homeowners who were told by their installer that the NJ solar incentive “wasn’t available anymore” or that their system “wasn’t eligible.” That’s either ignorance or a tactic to steer you toward a lease. The NJ SuSI ADI program is active and available for all new residential installations as of 2026.
Frequently Asked Questions
What is NJ’s SuSI program and how much does it pay in 2026?
SuSI (Successor Solar Incentive) is NJ’s current solar income program, which replaced the original volatile SREC market in 2021. The residential ADI rate is $85 per SREC-II as of March 2026 (reduced from $85 by the NJ BPU). A 10kW system earns roughly 12 SREC-IIs per year — about $1,020/year for the 15-year program life. Commercial rooftop systems earn $110/SREC-II.
Do I get SuSI SREC-IIs if I lease my solar panels?
No. SREC-IIs belong to the owner of the solar system. If you lease, the leasing company owns the panels and collects the certificates. This is one of the most significant financial differences between owning and leasing solar in NJ, worth roughly $15,300 over the 15-year program’s 15-year life on a 10kW system.
How long does the NJ SuSI program last?
The ADI provides SREC-II income for 15 years from the date your system is commissioned and registered. After 15 years, the SREC-II income stops, but your panels continue producing electricity — you just won’t have the additional certificate revenue.
Can non-profits get the 30% solar tax credit in NJ?
Non-profits, houses of worship, and other tax-exempt organizations cannot claim a tax credit directly — but under the IRA’s elective payment provision, they can receive an equivalent 30% direct cash grant from the IRS for commercial solar installations completed before December 31, 2027. This is a significant incentive that most non-profit boards aren’t aware of. Call Jon for details specific to your organization.
Who registers my system for SuSI SREC-IIs?
Your installer should handle GATS registration as part of the installation job. Ask before you sign a contract: “Do you handle SuSI registration in GATS, and is that included?” If the answer is no, factor in finding a broker who can assist, and make sure registration happens within 60 days of interconnection approval.
