If Atlantic City Electric is your utility across South Jersey, this is how rooftop solar pays you back in 2026. It works on two tracks at once, which is what most generic solar guides miss. Atlantic City Electric credits the power your panels send to the grid through its My Generation net-metering program, and on top of that New Jersey pays you a separate, fixed amount for every megawatt-hour your system produces through the state SuSI program. This page explains how both tracks credit you, why your fixed monthly charge does not disappear, how you connect, and how to tell whether your roof is a good fit.
Atlantic City Electric solar in 2026, at a glance
- New Jersey residential power averages about 23.49 cents per kWh (EIA, as of March 2026), above the national average, so the bill Atlantic City Electric solar offsets is a large one.
- Atlantic City Electric credits your exported power at full retail value, kWh for kWh, and carries the credit forward month to month under New Jersey net-metering rules (NJBPU rule N.J.A.C. 14:8-4.3, as of 2026).
- New Jersey’s SuSI program pays a separate fixed incentive of $85 per megawatt-hour produced for residential net-metered systems registered through June 30, 2026, locked in for 15 years (NJ Clean Energy Program, as of June 2026).
- New Jersey solar equipment is 100% exempt from state sales tax (about 6.625%) and the added home value is exempt from property tax (DSIRE, as of 2026).
- The 30% federal homeowner credit (Section 25D) ended for systems placed in service after December 31, 2025 (IRS, as of 2026), so most 2026 buyers cannot claim it.
Atlantic City Electric at a glance
Atlantic City Electric is the regulated electric delivery utility for much of South Jersey and the interconnection authority for solar in its territory. If your roof sits in its area, your solar follows Atlantic City Electric’s rules and New Jersey’s, not PSE&G’s and not JCP&L’s.
| Detail | What to know |
|---|---|
| Service territory | All or part of Atlantic, Cape May, Cumberland, Gloucester, Salem, and southern Burlington, Camden, and Ocean counties (Sustainable Jersey ACE territory list) |
| Rate context | New Jersey residential power averages about 23.49 cents per kWh (EIA, March 2026), above the national average |
| Net metering | Full net metering through My Generation; exports credited at full retail value, kWh for kWh |
| Annual true-up | Leftover yearly credits are settled at the avoided cost of wholesale power, not full retail |
| State incentive | NJ SuSI pays a fixed amount per MWh produced (SREC-II) for 15 years, stacked on top of net metering |
| Before you switch on | Atlantic City Electric must grant Permission to Operate (PTO) first |
How Atlantic City Electric credits your solar: My Generation net metering
Net metering is the first of your two credit tracks, and the timing of the year matters. When your panels make more power than your home uses, the extra flows to the grid and Atlantic City Electric credits it kilowatt-hour for kilowatt-hour at the full retail value of electricity, then carries that credit forward to your next bill (NJBPU rule N.J.A.C. 14:8-4.3, as of 2026). Through the summer your bank of credits builds up, and in the darker months you draw it down. For a plain-English primer on how export credits work in general, see how net metering credits your solar exports.
The part that surprises people comes at the end of the annualized period. If you finish the year with credits left over, those are not cashed out at the retail rate. New Jersey settles the remaining balance at the avoided cost of wholesale power, which is the regional wholesale price and is well below the retail rate you pay (NJBPU rule N.J.A.C. 14:8-4.3, as of 2026). The practical lesson is to size the system to your own yearly usage rather than far above it, so most of your production offsets your own retail-priced power instead of being trued up at wholesale.
| Stage of the year | How your export is valued |
|---|---|
| During the year | Credited at full retail value, kWh for kWh, and carried forward month to month |
| End of the annualized period | Any leftover credit is settled at the avoided cost of wholesale power, below retail |
| Every month, regardless | The fixed monthly customer and delivery charges still apply |
Note: solar does not erase your whole bill, and that is normal.
A common complaint in Atlantic City Electric territory is “I went solar and my bill is still high.” Net metering offsets the energy portion of your bill, but the fixed monthly customer and delivery charges remain even when your energy charge nets to zero (NJBPU rule N.J.A.C. 14:8-4.3, as of 2026). A good quote shows you the bill after solar, fixed charges included, not a promise of a zero bill.
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The SuSI incentive: New Jersey’s second credit track
Net metering lowers your bill; SuSI pays you on top of it. This is the part of New Jersey solar that genuinely separates it from most states. Through the Successor Solar Incentive program, your system earns one NJ SREC-II for every megawatt-hour (1,000 kWh) it produces, whether you used that power at home or exported it, and the state buys each SREC-II at a fixed price for 15 years (NJ Clean Energy Program, as of June 2026). It is a production payment, separate from the bill savings net metering gives you.
The dollar figure is time-sensitive, so the date matters. For residential net-metered systems whose SuSI registration is accepted through June 30, 2026, each SREC-II is worth $85, locked in for 15 years (NJ Clean Energy Program, as of June 2026). The residential rate then steps down to about $77 per SREC-II for systems registered on or after July 1, 2026 (DSIRE SuSI Program, as of June 2026). Either way the rate you lock in is fixed for the full 15-year term, so the registration date sets your payment for the life of the incentive. Your installer handles the SuSI registration as part of the project.
Note: SuSI is a 15-year stream, not an up-front rebate.
Unlike a one-time rebate, SuSI pays out as your system generates, year after year for 15 years. That changes the math on payback, because a chunk of your return arrives steadily rather than all at signing. Ask any installer to show you the SuSI income in the savings estimate, with the per-SREC-II rate they expect you to lock in.
New Jersey incentives an Atlantic City Electric customer can stack
Beyond the two credit tracks, New Jersey adds two state tax breaks, both still in effect in 2026. See our full New Jersey solar incentives hub for the statewide picture, and our guide to solar incentives for how they fit together.
| Incentive | What it gives you | The New Jersey detail |
|---|---|---|
| My Generation net metering | Full-retail credit for exported power, carried forward month to month (NJBPU) | Annual leftover is settled at the avoided cost of wholesale power, below retail |
| SuSI / SREC-II production incentive | A fixed payment per MWh produced, for 15 years (NJ Clean Energy) | $85 per SREC-II through June 30, 2026, then about $77 for later registrations; the locked rate runs the full 15 years |
| Sales and use tax exemption | 100% exemption from NJ sales tax, about 6.625%, on solar equipment (DSIRE) | Claimed with a Form ST-4 at purchase; your installer normally applies it so it comes off the price |
| Property tax exemption | The added home value from the system is exempt from property tax (DSIRE) | Not automatic: get a certificate from your local construction official and file the exemption with your municipal assessor |
The property tax exemption has a filing step worth flagging. It is real and current, but it does not apply itself. To exclude the system’s added value from your assessment you need a certificate from your local construction official that the system qualifies, and you have to file the exemption with your town’s tax assessor (DSIRE, as of 2026). It is a small piece of paperwork, but skipping it is how the benefit gets lost.
How to connect solar to Atlantic City Electric
Connecting a home system follows New Jersey’s interconnection rules, administered by Atlantic City Electric, and the rule that matters most is that you cannot turn the system on until Atlantic City Electric grants Permission to Operate. Almost every single-family rooftop system qualifies for the simplest review level, Level 1, which covers inverter-based systems up to 10 kW (NJBPU interconnection rules N.J.A.C. 14:8-5, as of 2026). The general path is:
- Interconnection application. You or your installer file the application with Atlantic City Electric before installation, with the system design, inverter data, and the net-metering request.
- Utility review. Atlantic City Electric reviews the package against the Level 1 screens. Standard residential systems generally clear this faster than large or grid-constrained projects.
- Approval to install. You receive conditional approval to build, but not yet to operate. Do not energize the system until the next steps are done.
- Install and inspect. The system is installed by a licensed contractor and passes your municipal electrical inspection.
- Meter and Permission to Operate. Atlantic City Electric sets the net meter and issues Permission to Operate. Your system only starts banking credits once it is approved to run.
A licensed installer normally manages this whole process, including the SuSI registration, so the interconnection, the net meter, and the incentive paperwork all line up.
Can’t put panels on your roof? New Jersey community solar
Not every household can host panels. Renters, shaded roofs, and condos are common in Atlantic City Electric territory, and New Jersey’s Community Solar Energy Program is built for exactly that case. You subscribe to a share of an off-site solar project in your utility area and receive a credit on your Atlantic City Electric bill for your share of what it generates, with no panels to install (NJ Clean Energy Program, as of 2026). You stay an Atlantic City Electric customer, and you can subscribe through a project developer rather than the utility. New Jersey is opening a large block of new community solar capacity, with the state’s registration portal scheduled to open to new projects on March 6, 2026 (NJ Clean Energy Program, as of 2026), so availability should widen through the year.
What changed federally, and what it means for South Jersey
The federal homeowner credit is gone, but New Jersey’s programs are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so an Atlantic City Electric customer who buys solar with cash or a loan in 2026 cannot claim it (IRS, as of 2026). For the full timeline, see what the end of the federal solar tax credit means in 2026. What carries the math now is New Jersey’s own stack: My Generation net metering, the SuSI production payment, and the sales and property tax exemptions, none of which were affected.
One federal exception remains, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner. On a leased system you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025, so do not let a sales pitch tell a 2026 cash or loan buyer otherwise.
How to choose a solar installer in Atlantic City Electric territory
South Jersey is a competitive solar market, so you have plenty of licensed installers to choose from. Rather than chasing a “best installer” list, screen any company against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid New Jersey Home Improvement Contractor registration, which the state requires of solar contractors.
- A clear workmanship and equipment warranty in writing.
- Real experience with Atlantic City Electric interconnection and Permission to Operate, plus the New Jersey SuSI registration, so the process and the incentive both go smoothly.
- A written production estimate and a transparent quote that shows your bill after solar, fixed charges and SuSI income included.
For comparison with the neighboring utilities, see how the credits work under PSE&G New Jersey net metering and JCP&L New Jersey net metering. For the local, city-level numbers in Atlantic City Electric’s flagship shore market, including real coastal production and payback, see our Atlantic City solar guide. MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Check which solar programs are available at your address →
Looking at the specifics? See New Jersey’s net metering and SREC-II program.
Frequently asked questions
How does Atlantic City Electric net metering work in 2026?
Atlantic City Electric runs full net metering through its My Generation program. When your panels export power, the utility credits it kilowatt-hour for kilowatt-hour at the full retail value of electricity and carries the credit forward to your next bill (NJBPU N.J.A.C. 14:8-4.3, as of 2026). Your credits build through the sunny months and draw down in winter. At the end of the annualized period, any leftover credit is settled at the avoided cost of wholesale power, which is below retail, so it pays to size the system to your own yearly use rather than far above it.
Why is my Atlantic City Electric bill still high after going solar?
Because net metering only offsets the energy part of your bill. The fixed monthly customer and delivery charges remain even when your energy charge nets to zero (NJBPU N.J.A.C. 14:8-4.3, as of 2026), so no rooftop system produces a literal zero-dollar bill. A second reason is sizing: a system smaller than your usage leaves part of your power bought at the retail rate. A good quote shows your expected bill after solar with the fixed charges included, not a promise that the bill disappears.
How much does New Jersey’s SuSI program pay an Atlantic City Electric customer?
SuSI pays a fixed amount for every megawatt-hour your system produces, on top of your net-metering savings. For residential net-metered systems registered through June 30, 2026, each SREC-II is worth $85, locked in for 15 years; the residential rate then steps down to about $77 for registrations on or after July 1, 2026 (NJ Clean Energy Program, as of June 2026). Whatever rate you lock in at registration is fixed for the full 15-year term, so the registration date sets your payment. Your installer registers the system for you.
Does New Jersey still tax solar equipment or the home value it adds?
No on both counts, and these are New Jersey state breaks. Solar energy equipment is 100% exempt from New Jersey sales tax, about 6.625%, claimed with a Form ST-4 that your installer normally applies at purchase (DSIRE, as of 2026). The added value your system gives your home is also exempt from property tax, but that one is not automatic: you get a certificate from your local construction official and file the exemption with your municipal tax assessor to claim it.
What happened to the federal solar tax credit for Atlantic City Electric customers?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a homeowner buying with cash or a loan in 2026 cannot claim it (IRS, as of 2026). A separate commercial credit, Section 48E, can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. New Jersey’s net metering, the SuSI payment, and the sales and property tax exemptions were not affected and still carry the payback in 2026.
Do I qualify for net metering and SuSI if I lease or sign a PPA?
Net-metering credits follow your Atlantic City Electric account, so the customer of record earns them whether you own, lease, or sign a PPA. The SuSI payment and the state tax exemptions, though, flow to the system owner, so on a lease or PPA the third-party company keeps those while your benefit is a lower or fixed power price with no up-front cost. If you want the SuSI income and the tax breaks in your own name, owning the system through cash or a loan is the path that captures them.
What if I can’t put solar on my roof?
New Jersey’s Community Solar Energy Program lets renters and homeowners who cannot install panels subscribe to a share of an off-site project in Atlantic City Electric territory and receive a credit on their bill, with no panels to install (NJ Clean Energy Program, as of 2026). You stay an Atlantic City Electric customer and sign up through a project developer. The state is opening new community solar capacity in 2026, so check current project availability for your area.
Reviewed by the MySolarFY team. Figures were verified against the linked Atlantic City Electric, New Jersey Clean Energy Program, New Jersey Board of Public Utilities net-metering rule, DSIRE, EIA, and IRS sources as of June 2026; net-metering terms, the SuSI incentive rate, and electricity rates reset over time, so confirm current terms with Atlantic City Electric and the New Jersey Clean Energy Program before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the New Jersey SuSI payment and the state tax exemptions go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
