New Jersey is a great place to go solar, largely because of our excellent net metering policies. But things could be changing, and soon.
Ongoing conversations about cost distribution and grid maintenance concerns suggest that net metering will be restructured in New Jersey, with a reduction in benefits for solar customers.
In this guide, we explain what the current net metering policies are in New Jersey, what changes may be coming, and why the safest bet is to go solar now.
New Jersey’s Current Net Metering Policy
Net metering is a solar incentive that allows you to sell the excess solar power you generate to your utility in exchange for credits on your account. The credits roll over month to month, so you can bank credit during the long summer days when your panels are overproducing and use them to buy electricity in the winter when the days are short and your panels produce less power.
The premise behind net metering is the same everywhere it’s offered, but the rules around it differ by state. In some states, utilities are not required to offer net metering at all. In others, they can credit their solar customers at such a low rate that the incentive is effectively worthless.
In New Jersey, investor-owned utilities are required to buy electricity from their solar customers at the full retail price. That means they buy electricity at the same rate they charge for it. This one-for-one agreement makes solar panels significantly more profitable for NJ homeowners and businesses.
Net Metering Changes on the Horizon in 2024
California recently made headlines across the country for decimating net metering benefits with its decision to eliminate one-to-one net metering in 2023. But it’s not the only state making changes. Many other states, including New Jersey, are concerned about the cost distribution effects of net metering on non-solar customers.
Cost distribution refers to how the costs associated with maintaining and operating the electric grid are shared among all utility customers. The concern is that solar customers contribute less to grid maintenance costs since net metering reduces their bills, shifting the cost of maintenance disproportionately to non-solar customers.
Even though studies have shown that net metering benefits all utility customers, utilities continue to push the cost shift myth to sway policy in their favor and target solar customers. This may ultimately lead New Jersey down the same path California has taken. Recent policy discussions in New Jersey have touched on potential net metering changes that would reduce benefits for homeowners.
The Best Bet for Solar? Do It Soon
The good news is that no formal changes have been made to New Jersey’s net metering policy. But we believe the writing is on the wall. If you want to lock in the best net metering incentive before it’s too late, you should act fast.
NJ Solar Power can help you take full advantage of New Jersey solar incentives to maximize your earning potential with solar panels. We are one of the oldest solar companies in New Jersey and we help our customers make money with solar!