New Jersey SREC-II (SuSI/ADI) in 2026: $77 Rate, Who Gets Paid

New Jersey pays solar owners a fixed $77 for every megawatt-hour (1,000 kWh) their system produces, for 15 years, through the SREC-II / ADI incentive — down from $85 for systems registered before July 27, 2026. The money goes to whoever owns the system: you on a cash or loan purchase, the leasing company on a lease or PPA.

That one incentive is worth roughly $650–$800 a year on a typical 8–10 kW New Jersey rooftop, so it shows up in almost every solar proposal in the state. It is also where proposals most often go wrong: an outdated rate, an installer who builds before registering, an aggregator fee nobody mentioned, or a lease pitched on income the homeowner will never receive.

This guide explains how the incentive works in 2026, exactly what changed in July, who gets the money under each ownership structure, how to sanity-check the SREC-II line in a quote, and the registration deadline that can quietly cost you the entire 15-year payment if your installer gets the order of operations wrong.

What is the NJ SuSI program? SREC-II and ADI explained

SuSI is New Jersey's current solar incentive program; its residential track, ADI, pays a fixed $77 per SREC-II (1,000 kWh) for 15 years. Three names, one program. The Successor Solar Incentive (SuSI) program is what replaced New Jersey's original SREC market. It was created by the Solar Act of 2021 and launched by the Board of Public Utilities (BPU) in a July 28, 2021 order. For homeowners, the relevant piece is the Administratively Determined Incentive (ADI) sub-program, which opened for registrations on August 28, 2021 and covers net-metered residential systems of any size.

The unit of payment is the SREC-II (Solar Renewable Energy Certificate II). Your system earns one SREC-II for each 1,000 kWh it generates, tracked through PJM's Generation Attribute Tracking System (GATS). Under the ADI program the BPU sets the value of each SREC-II administratively — it is a fixed price, not a traded market price like the old SRECs — and locks that value for 15 years from when the system begins commercial operation.

New Jersey also runs an annual capacity block for the program. The BPU allocates a set number of megawatts to residential systems each "energy year" (June 1 through May 31), and registrations are accepted first-come, first-served until the block fills or the year ends. For the energy year that started June 1, 2026, the residential block is 300 MW, up from 285 MW the prior year (250 MW plus a 35 MW reallocation the Board approved in April 2026 when residential demand outran the original allocation).

What changed in July 2026? The ADI rate dropped from $85 to $77

On May 21, 2026, at the end of its required three-year review of the ADI program, the BPU cut the residential incentive from $85 to $77 per SREC-II (about 9%). The new value applies to registrations received on or after July 27, 2026; anything registered before that date keeps $85 for its full 15-year term. Non-residential incentive levels were left unchanged.

The Board's reasoning, from the order: residential registrations kept exceeding the capacity the Board had planned for; the pace accelerated in late 2025 ahead of the federal tax credit's expiration and did not slow in early 2026 — customers instead shifted toward leases and PPAs; and BPU staff concluded the old level was "higher than necessary to spur residential solar development" — a recommendation the Board adopted. Had the Board done nothing, the program's rules would have applied an automatic 10% reduction, so $77 is roughly what would have happened anyway.

Why the roughly two-month gap between the order and the effective date? The BPU said explicitly that it wanted installers' existing customers — people who had signed contracts quoting $85 but were waiting on permits or interconnection approval — to be able to register before the rate dropped. If you signed in spring 2026 and your installer did not register your system by July 26, that grace period was for you, and it is fair to ask why it was missed.

Source: NJ BPU Order, Docket Nos. QO20020184 and QO26030096, Agenda Item 8C, May 21, 2026, and the March 6, 2023 One-Year Review order. Values are per SREC-II, i.e. per 1,000 kWh generated.

How much is the SREC-II incentive actually worth?

At $77 per SREC-II, a typical 8 kW New Jersey system earns about $680–$770 a year, or roughly $10,000–$11,500 over 15 years. The exact figure depends on how much your system produces, not on what it cost. A rough New Jersey production figure is 1,100–1,250 kWh per year for each kilowatt of panels, depending on roof direction, tilt, and shade. So:

• 6 kW system → roughly 6.6–7.5 MWh/year → about $510–$580/year at $77
• 8 kW system → roughly 8.8–10 MWh/year → about $680–$770/year at $77
• 10 kW system → roughly 11–12.5 MWh/year → about $850–$960/year at $77

Over 15 years an 8 kW system lands somewhere around $10,000–$11,500 in nominal SREC-II income, before accounting for the small annual output decline that every panel warranty assumes. That is meaningful — it is the main reason owned solar still pencils in New Jersey after the federal residential credit ended — but it is not the $11,200–$12,750 a proposal built on the old $85 rate would show for the same roof. The gap between the two rates on an 8 kW system is roughly $1,050–$1,200 over the term.

Two things a proposal often leaves out. First, SREC-II income is generally reported as income for tax purposes; ask a tax professional how it applies to you, and don't treat the gross number as take-home. Second, most homeowners don't sell their SREC-IIs themselves — an aggregator handles the GATS account and the transactions and keeps a fee or a percentage. Your installer may bundle one in. Ask what the fee is and whether the proposal's income line is before or after it.

Who gets the SREC-II money — you or the leasing company?

The owner of the system. This is the single most important line to check in a New Jersey proposal, because it flips depending on how you pay:

Lease and PPA proposals are not doing anything wrong by keeping the SREC-IIs — the third-party owner is entitled to them, and in 2026 they are also the only party that may still be able to claim a federal credit (the commercial §48E credit — and only if the project meets the post-2025 construction-start / placed-in-service deadlines and foreign-entity rules). Whether the §48E credit is even available on a residential roof is unresolved, so treat it as the provider's problem rather than a settled benefit. Neither the SREC-IIs nor any credit lands on your tax return: whatever value they carry can only reach you through the monthly payment the provider quotes — a price it sets, and whether that price stays a saving depends on the escalator over the term. The problem is when a lease or PPA pitch describes New Jersey's SREC-II income as a benefit to you, or when a homeowner compares a $0-down lease against a cash quote without realizing the cash quote's savings include ~$700 a year the lease does not.

If you are leaning toward a lease or PPA, the right question is not "do I get the SREC-IIs" (you don't) but "how much of the SREC-II value (and any §48E credit the provider qualifies for) is passed through as a lower rate, and how does this rate compare to the same provider's rate in a state with no SREC program?" Our guide to PPA rates and escalators covers how to evaluate the rate itself.

The registration deadline that can cost you all 15 years

The ADI rules (N.J.A.C. 14:8-11.5) require that a system receive its notice of conditional registration before construction begins. Register first, build second. An installer who puts panels on your roof before the registration is accepted has built a system that cannot enter the program, and there is no ADI income to recover afterward.

Once registered, a residential net-metered system has 12 months from the notice to be built, interconnected, and to submit its post-construction certification package; one six-month extension is available on request. After certification, the state issues a certification number and the system starts earning SREC-IIs in GATS.

Practically, this means three things for you:

1. Ask for the notice of conditional registration and keep a copy. It is the document that proves the incentive is yours and locks your rate tier. Reputable New Jersey installers do this routinely; you are just verifying.
2. The registration date, not the contract date, determines your rate. A contract signed July 1, 2026 whose registration was submitted August 1 gets $77, not $85, no matter what the proposal said.
3. The annual block can fill. Registrations are first-come, first-served against the 300 MW block for the year ending May 31, 2027. The Board has had to reallocate capacity to residential three separate years because demand ran ahead of the block. If it fills, new registrations wait for the next allocation. An installer's registration timeline is part of the deal.

NJ solar incentives 2026: how SREC-IIs stack with net metering and tax exemptions

SREC-IIs are paid on all production — every kWh your system generates, whether you use it or export it — so they sit on top of, not instead of, net metering. In 2026, New Jersey's investor-owned utilities (PSE&G, JCP&L, Atlantic City Electric, Rockland Electric) still credit exported solar at the full retail rate. Excess credits bank month to month, and whatever is left at your annual true-up is paid out at the utility's avoided-cost (wholesale) rate, which is far lower — so a system sized well beyond your usage earns little on the surplus.

The BPU has studied successor net-metering designs but nothing has replaced retail crediting as of this writing; there is no statutory guarantee that existing systems would be grandfathered if crediting changes, so ask what your interconnection agreement actually locks in.

The rest of the New Jersey stack in 2026:

• Sales tax exemption on solar energy equipment — you should see no NJ sales tax on the system in a cash or loan quote.
• Property tax exemption for renewable energy systems — the added value of the array is exempt from local property tax; you apply through your local tax assessor after installation.
• Federal residential credit (§25D): ended. The 30% credit is not available for systems whose installation was completed after December 31, 2025 — for every homeowner-owned system, however it is paid for. Any New Jersey proposal for a system you will own that still shows a 30% federal credit is wrong. If your installation was completed in 2025 and the credit was larger than your tax bill, the unused amount still carries forward under §25D(c); ask your CPA. The details and the red flags are here.

How to check the SREC-II line in your quote

Every New Jersey proposal has an income or savings line for SREC-IIs somewhere. Here is how to test it in five minutes:

1. Find the rate. If the proposal shows $85 (or $90) per SREC-II and your registration will be submitted after July 26, 2026, the income is overstated by about 10% (about 17% at $90). Ask for it rerun at $77.
2. Find the production number. Divide the annual SREC-II income by the rate; that's the MWh the installer assumed. Divide by system size in kW. If you get much above ~1,250 kWh per kW on a New Jersey roof, the production estimate is optimistic and the bill savings are probably optimistic too.
3. Check for degradation. A 15-year income table with the same number every year ignores output decline. It's a small effect year to year, but it adds up.
4. Check for an aggregator fee and whether the income shown is net of it.
5. Check who owns the system. If it's a lease or PPA and SREC-II income appears as a benefit to you, that's a misrepresentation — strike it from the comparison.
6. Ask for the separated table. Bill savings, SREC-II income, and any loan payment as three separate columns. Proposals that blend them into one "total savings" figure make it impossible to see which assumption is carrying the number.

New Jersey SREC-II FAQ

Is the SREC-II value locked once I'm registered?

Yes. The ADI incentive is fixed for 15 years at the value in effect when your registration is received. Later BPU changes apply only to new registrations.

Do I have to sell my SREC-IIs through the installer's aggregator?

No. You can manage the GATS account yourself or choose an independent aggregator. Most homeowners use an aggregator for convenience; just know the fee.

My system was installed years ago under the old SREC or Transition Incentive program. Does the $77 change affect me?

No. The May 2026 order applies only to new ADI registrations on or after July 27, 2026. Systems in the legacy SREC market or the TREC program keep their own rules.

What's the difference between SREC, TREC, and SREC-II?

Original SRECs were sold at a market price that moved with supply and demand. The Transition Incentive (TREC) bridged the gap while the state designed the successor program. SREC-II is the current unit: an administratively fixed price ($77 for new residential registrations) locked for 15 years.

Does adding a battery change my SREC-II income?

Not directly — SREC-IIs are based on solar generation, and a battery doesn't change how much your panels produce. It can change your net-metering economics and your bill, which is a separate calculation.

What if the residential block fills before my installer registers me?

Your registration would wait for the next energy-year allocation (June 1). That's a timing risk rather than a lost incentive — though the rate that applies is whatever is in effect when the registration is finally received, and construction can't start until it is — so it's another reason to ask when your registration will be submitted and to get the notice of conditional registration in hand before construction.

Before you sign: the New Jersey checklist

Run the quote check above, then confirm three more things:

1. Ask the installer for the date they will submit the ADI registration, and get the notice of conditional registration before any construction starts.
2. Verify no NJ sales tax on the equipment, and note the property-tax exemption application for after installation.
3. Strike any 30% federal credit from a proposal for a system you will own — it ended for every homeowner-owned system whose installation was completed after December 31, 2025.

If you'd rather have someone run those checks for you, send us the proposal. Solarfying is an independent solar broker: we don't install systems, homeowners pay us nothing, and we're compensated on the industry side only if you choose to move forward with a deal through us. We'll review the quote free — the SREC-II assumptions, the production estimate, the price per watt, the system size against your usage, and the financing — and show you whether the numbers hold up at the rate you'll actually receive. You can see how the quote review works first.

This article is general consumer education, not legal, tax, or financial advice. New Jersey incentive values, capacity allocations, program rules, and utility tariffs change by Board order; confirm current figures with the NJ Clean Energy Program and your installer's registration documents before you rely on them. Production and income figures above are illustrative ranges, not estimates for your home.