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The Definitive Guide to Solar Renewable Energy Credits in New Jersey

New Jersey offers some of the best solar incentives in the country, which is part of what makes us one of the top ten states for solar energy. 

One such incentive, New Jersey solar renewable energy credits, makes solar panel installation more profitable for homeowners, businesses, and industrial organizations. 

At NJ Solar Power, we’re committed to helping our customers make money with solar panels. We can help you squeeze your investment in residential or commercial solar panels for all its worth with incentives like SRECs. Keep reading to learn everything you need to know about solar renewable energy credits in NJ! 

What Are Solar Renewable Energy Credits? 

Solar renewable energy credits (SRECs) are a certificate that represents the environmental benefit of generating solar energy. You receive SRECs, which have financial value, simply for generating clean electricity with your solar energy system. Utility companies and other organizations buy SRECs to meet their renewable energy generation requirements. 

How SRECs Work in New Jersey 

Solar renewable energy credits are a key component of solar policy in several states, and there are different rules surrounding SREC programs depending on where you live. Most states have a marketplace through which SRECs are bought and sold. New Jersey utilized this system until 2021 when it launched the Successor Solar Incentive (SuSi) program to replace its traditional SREC program. 

The SuSI program is divided into two subprograms—one for residential systems and another for commercial and industrial systems

  • The Administratively Determined Incentive (ADI) program is for residential and community solar projects smaller than 5 MW. 
  • The Competitive Solar Incentive (CSI) program is for commercial and industrial solar projects larger than 5 MW.

Under the new programs, SRECs in New Jersey are referred to as SREC 2s. Here’s how they work: 

  1. Generation – You receive one SREC for every megawatt-hour of electricity your solar panels generate for 15 years.
  2. Tracking – You are required to report your solar energy production to the SREC Tracking System in New Jersey, which determines the number of SRECs earned. This is a simple process and we will guide you through it. 
  3. Trading – SREC 2s are traded in a marketplace, similar to stocks. Residential solar owners typically use an aggregator to sell their SREC 2s, which makes the process easier. In most states, SREC prices fluctuate based on market conditions. But in New Jersey, SREC 2s have a fixed rate. Every residential SREC 2 is sold for $85 and every commercial SREC 2 is sold for $110. 

How Much Can You Earn with SRECs? 

The number of SRECs you can earn and the resulting amount of money you can make with them depends on how much solar energy you produce. 

Let’s say you install a 10 kW residential solar energy system. You should be able to produce a little over 12,000 kWh a year with a system that size in New Jersey, which is equal to 12 megawatts. Since each megawatt earns you one SREC 2, you’ll receive 12 SRECs throughout the year and can sell each for $85, earning you $1,020 in just one year. Over the course of the program’s 15-year participation period, you’ll earn $15,300 with SREC 2s. 
These earnings are an additional benefit that you receive on top of all other state and federal incentives, including the 30% solar tax credit, net metering, and NJ’s solar sales and property tax exemptions. Collectively, these incentives can significantly reduce your upfront costs and help you earn more money with solar over time.

Start making money with solar panels! Call NJ Solar Power at 732-269-0308 or contact us for a free estimate.

Contact Us Today

NJ Solar has been the Solar Power Professionals for over 20 years! Today, the state of New Jersey is a national leader in solar energy, but it wasn’t always that way. New Jersey Solar Power LLC has been there since the beginning of the solar energy revolution in NJ.

With awards for Environmental Excellence and the New Jersey Clean Energy Project of the Year, we’ve built a reputation worthy of being your partner in clean, efficient solar energy. Contact us today to get free customized pricing that’s tailored to your home or business.











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