Clean Energy Rebate Program

PV systems (also known as solar-electric systems) are eligible for incentives paid incrementally, based on the size of the system installed (DC rating). Systems up to 1 MW in capacity are eligible, but incentives are paid only for the first 700 kilowatts (kW) of capacity.

Effective for applications received on or after March 15, 2006, approved projects installed by all public and nonprofit applicants are eligible for the following incentive levels:

  • $5.15 per watt for the first 10 kW of system capacity 
  • $4.15 per watt for the next 30 kW of system capacity 
  • $3.50 per watt for the next 60 kW of system capacity 
  • $3.40 per watt for the next 600 kW of system capacity

Effective for applications received on or after March 15, 2006, approved projects installed by all private-sector applicants (residential, commercial and industrial) are eligible for the following incentive levels.

  • $4.35 per watt for the first 10 kW of system capacity 
  • $3.20 per watt for the next 30 kW of system capacity 
  • $3.00 per watt for the next 60 kW of system capacity 
  • $2.80 per watt for the next 600 kW of system capacity

Clean Energy Financing for Local Schools and Governments

The New Jersey Board of Public Utilities, in partnership with the New Jersey Economic Development Authority, offers local governments and schools a low-interest, long-term financing program that allows them to combine traditional energy efficiency and renewable energy incentive programs. Financing under this program will cover the entire incremental cost of energy efficiency and renewable energy projects, enabling the governmental entities to finance the projects completely, with no up front capital necessary.

Production Incentive

Solar Renewable Energy Certificates (S-RECs) represent the renewable attributes of solar generation, bundled in minimum denominations of 1 megawatt-hour (MWh) of production. New Jersey’s S-REC program provides a means for solar certificates to be created and verified, and allows electric suppliers to buy these certificates in order to meet their solar RPS requirements.

S-RECs are bundled and traded in minimum denominations of 1 MWh (1,000 kWh). The maximum price for an S-REC is forecast to be approximately $250 per MWh ($0.25 per kWh). The S-REC program is anticipated to compensate system owners an average rate of around $200 per MWh ($0.20 per kWh) generated. The estimated rate impact of the program on all customers is $0.00002 per kWh.

Sales Tax Exemptions

New Jersey offers a full exemption from the state's 6% sales tax for all solar and wind-energy equipment. This exemption is available to all taxpayers. All major types of solar-energy equipment, including equipment for passive solar design, are considered eligible for the exemption.

More Information

For more information on New Jersey’s programs visit the Database of State Incentives for Renewable Energy.

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