Is paying cash for solar worth it in New Jersey?
You own it, you keep the savings, and New Jersey stacks a few extras on top.
The idea
You buy the system once. After that, most or all of your electric cost goes away for decades. No loan, no monthly solar payment.
What New Jersey adds
Solar equipment is exempt from state sales tax. The added value to your home from solar is also exempt from property tax, through a program your town manages. And you earn production incentives from the state.
The state incentive
Under the state ADI program (the successor to SREC), residential systems registered on or after July 27, 2026 earn $77 per megawatt-hour for 15 years, down from $85 before that date. Rates change, so we check the current one for you.
What changed federally
The federal homeowner credit ended for systems placed in service after December 31, 2025. That makes the state perks matter more.
Who it suits
Homeowners who plan to stay put and want the highest long-term return. If you would rather keep your cash, financing or a PPA may fit better.
Keep reading
- PPA vs solar lease: what is the difference?Both mean little or nothing down. Here is how they differ and who each one suits.
- Solar loans: how financing worksSwap your electric bill for a fixed payment, and own the system.
- New Jersey net metering, explainedHow your meter turns extra solar power into credit on your bill.