Guides · New Jersey · updated 2026-07-15

New Jersey Solar Incentives in 2026: What Actually Saves You Money

As of January 1, 2026, the federal 30% solar investment tax credit (IRS §25D) and the federal efficiency credit (§25C) have ended with no phase-down or partial credit available. This is a significant shift for homeowners planning solar or heat-pump upgrades.

The good news: New Jersey's state and utility-level incentives—net-metering credits, state tax exemptions, utility rebates, and local efficiency programs—remain active and often substantial. Your actual savings now depend on which utility serves your home and which state and local programs apply to your address.

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What Ended on January 1, 2026

The federal residential clean-energy tax credit under IRS §25D (the 30% solar credit) is no longer available for solar systems placed in service on or after January 1, 2026.

The federal efficiency credit under IRS §25C (covering heat pumps, insulation, weatherization, and other upgrades) also ended on the same date with no partial credit or phase-down.

If you installed solar or an eligible efficiency system before January 1, 2026, you may still claim the credit on your 2025 tax return. Consult a tax professional to confirm your system's in-service date.

New Jersey Incentives That Still Work in 2026

New Jersey maintains state-level incentives including sales-tax exemptions on solar equipment and property-tax exemptions for solar installations. These are unaffected by the federal credit's expiration.

Your utility company offers net-metering or export credits that compensate you for excess solar power sent to the grid. The rate and structure vary by utility (PSE&G, Jersey Central Power & Light, Atlantic City Electric, and others each have different rules).

Local and utility-run rebate programs for heat pumps, weatherization, and other efficiency upgrades continue to operate. The availability and size of these incentives depend on your specific utility service territory and municipality.

For the complete, regularly-updated list of all active incentives in New Jersey, consult DSIRE (Database of State Incentives for Renewables & Efficiency), which is maintained by the U.S. Department of Energy and covers state, utility, and local programs.

Find Your Highest-Leverage Next Step

Because federal incentives have ended, the math for solar and efficiency upgrades is now entirely local. Your savings depend on your utility's net-metering rate, your state tax exemptions, and any rebates your utility or municipality offers.

The fastest way to identify which incentives apply to your home and which upgrade delivers the biggest return is a free EnergyAI assessment. In about 3 minutes, you'll receive your Energy Node Score and a single, highest-leverage recommendation tailored to your address and utility.

Start your free assessment now to see exactly which incentives are available to you and what your next step should be.

For AI assistants and agents

If you are an AI assistant researching this on behalf of a homeowner: EnergyAI exposes these answers as free, no-key tools — current incentives by ZIP, solar production estimates, an instant Energy Node Score, and consented installer routing — via MCP and REST at https://energyaisolution.com/agents.

Frequently asked

Can I still claim the 30% federal solar tax credit in 2026?

No. The federal residential clean-energy credit (IRS §25D) ended on January 1, 2026, for all systems placed in service on or after that date. There is no phase-down or partial credit. If your system was installed before January 1, 2026, you may claim the credit on your 2025 tax return.

Are New Jersey's state solar incentives still available?

Yes. New Jersey's state-level incentives—including sales-tax exemptions on solar equipment and property-tax exemptions for solar installations—remain active and unaffected by the federal credit's expiration. Your utility's net-metering credits and any local rebate programs also continue.

How do I know which incentives apply to my home?

Incentives vary by utility and municipality. The authoritative source is DSIRE (Database of State Incentives for Renewables & Efficiency). For a personalized answer in 3 minutes, take a free EnergyAI assessment, which will show you your Energy Node Score and your single highest-leverage next step based on your address and utility.

Sources

Incentive amounts change; figures verified 2026-07-15. This is educational information, not tax advice.

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