Edison homeowners sit in a sweet spot for rooftop solar that a lot of the state does not share: high PSE&G electric bills, large suburban roofs with room for a real system, and a New Jersey program that pays you to produce solar power on top of crediting your bill. This page runs the actual Edison numbers, what a system costs, how PSE&G credits the power you send back, the SREC-II earnings and tax exemptions that change the math, and how Edison Township permitting works, so an owner-occupied home in Middlesex County can decide with eyes open. The headline for Edison is ownership: if you buy your system, you keep the bill credits and the SREC-II earnings yourself, and a typical Edison roof is big enough to make both add up.
Edison solar at a glance (updated for 2026)
- A typical Edison roof makes real power. A 6 kW system in Edison produces about 8,000 kWh a year (NREL PVWatts modeled 7,974 kWh in 08817, 8,139 in 08820, and 7,939 in 08837), and suburban roofs here often fit 8 to 10 kW (NREL PVWatts, as of 2026).
- PSE&G power is expensive, which is what makes solar pay. Residential electricity in New Jersey averages about 23 cents per kWh (EIA, as of March 2026), and PSE&G’s all-in residential rate runs closer to 26 cents once delivery and riders are added (EIA; PSE&G Price to Compare).
- Net metering banks your exports. PSE&G credits the energy you export kilowatt-hour for kilowatt-hour and banks it across a 12-month contract year, with an annual true-up (PSE&G net metering, as of 2026).
- New Jersey also pays you to produce. A registered residential system earns one SREC-II per 1,000 kWh through the state’s SuSI program, listed at about $85 each and locked for a fixed 15-year term (DSIRE Successor Solar Incentive (SuSI), as of 2026).
- No state sales or property tax on your system. New Jersey exempts solar equipment from the 6.625% sales tax and exempts the added home value from property tax (NJ Division of Taxation, SU-6; NJ Division of Taxation, property-tax exemptions, as of 2026).
- The 30% federal homeowner credit (Section 25D) ended after December 31, 2025 (IRS, as of January 1, 2026), so an Edison homeowner who buys solar in 2026 cannot claim it.
Why Edison is a strong rooftop market
The reason solar pays in Edison is the size of the PSE&G bill it offsets, and the size of the roof doing the offsetting. Residential electricity in New Jersey averages about 23 cents per kWh (EIA, as of March 2026), and once you add PSE&G’s delivery charges and riders, the all-in rate an Edison home actually pays is closer to 26 cents per kWh (EIA; PSE&G Price to Compare, as of 2026). Every kilowatt-hour your roof makes offsets one of those expensive grid kilowatt-hours, so an Edison home spending $150 or more a month on electricity is a strong solar candidate.
Edison’s suburban roofs are what set it apart from the denser PSE&G cities nearby. Where solar in Jersey City, Paterson, and Camden often means row houses, shared roofs, and a large share of renters, Edison is a large Middlesex County township built mostly on detached single-family homes. That means more south-facing roof area, fewer shared-roof and renter complications, and room for an 8 to 10 kW system rather than the smaller arrays a row-house block allows. That matters twice over, because your production drives both your bill savings and your SREC-II earnings. NREL’s PVWatts model puts a 6 kW Edison system at about 8,000 kWh a year, roughly 1,336 kWh for every kilowatt of panels you install, so a larger roof scales the whole payback up (NREL PVWatts, as of 2026). Output still depends on your roof’s pitch, shading, and orientation, so estimate your own address with the free PVWatts tool rather than a generic number.
Weighing your options across the area? Compare nearby New Jersey solar markets with our local guides for Elizabeth and Clifton.
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What does solar actually pay back in Edison? (our estimate)
Here is the part most pages skip: the Edison-specific math, built from the rate and the real production above. The table below estimates the annual value and simple payback for three common system sizes on an Edison roof. We take the NREL PVWatts production for Edison (about 1,336 kWh per kW per year), credit the energy against New Jersey’s average residential rate of 23.49 cents per kWh, add the SREC-II earnings at the DSIRE-listed $85 per 1,000 kWh, and divide a typical New Jersey installed price of about $3.00 per watt by the annual value. These are estimates, not quotes, and your own roof, usage, and the live SREC-II value will move them.
| Edison system size | Est. annual production | Est. net-metering savings (at 23.49c/kWh) | Est. SREC-II earnings (at $85/MWh) | Combined annual value | Est. simple payback (with SREC-II) |
|---|---|---|---|---|---|
| 6 kW | ~8,000 kWh | ~$1,880 | ~$680 | ~$2,560 | ~7 years |
| 8 kW | ~10,700 kWh | ~$2,510 | ~$910 | ~$3,420 | ~7 years |
| 10 kW | ~13,400 kWh | ~$3,140 | ~$1,140 | ~$4,280 | ~7 years |
On bill savings alone, without counting the SREC-II earnings, payback runs about 9 to 10 years across all three sizes, since cost and value scale together. Inputs and assumptions: production from NREL PVWatts for Edison ZIPs, scaled linearly from the modeled 6 kW result; rate from EIA (NJ residential, March 2026); SREC-II value as DSIRE lists it today; installed price about $3.00 per watt, a typical 2026 New Jersey cash price before financing. Because the 25D federal credit ended after December 31, 2025, there is no longer a 30% federal reduction in the cost column, so the gross price is what a 2026 cash buyer pays. Payback is simple (not discounted) and ignores rate inflation, which would shorten it. Confirm the live SREC-II value and get a written quote before relying on these numbers.
The takeaway: an Edison system tends to pay for itself in roughly seven years once the SREC-II earnings are counted, and close to nine or ten years on bill savings alone. The SREC-II earnings run for a fixed 15-year term, and net metering keeps crediting after that, so the savings outlast the payback. For the full national picture on whether the numbers work, see whether solar panels are worth it in 2026.
How PSE&G net metering actually credits you
New Jersey kept a strong version of net metering, and the mechanics are worth getting right. PSE&G credits the energy your system exports at the full retail rate as monthly kilowatt-hour credits that roll over month to month, and at your annual true-up any remaining net surplus is paid out at the utility’s lower wholesale, avoided-cost rate (NJ Clean Energy Program, as of June 2026); this is a statewide rule the New Jersey Board of Public Utilities sets under N.J.A.C. 14:8-4, so the credit works the same across PSE&G’s territory. During the year, that banking offsets the energy you pull at night or on cloudy days at close to retail value, so a system sized to your annual usage can erase most of your supply charges. The practical lesson is to size to your usage, not above it, so you capture the high in-year value instead of over-producing into the lower true-up rate.
Note (a true-up is not full retail forever): It is common to see net metering described as “full retail, one for one.” Within the contract year that is close to true for the energy charges you offset. But the year-end surplus settles at wholesale, and delivery and fixed charges are not fully erased by credits, so do not assume every kilowatt-hour earns the full 26-cent value indefinitely. This is a statewide rule the New Jersey Board of Public Utilities sets under N.J.A.C. 14:8-4, not a PSE&G-only policy. For the mechanics in plain language, see how net metering credits your solar exports, and for the full utility rules, our PSE&G solar guide.
The SREC-II earnings: New Jersey pays you to produce
On top of net metering, New Jersey pays you a separate earning for the solar electricity you generate, and in Edison you keep it if you own the system. Through the Successor Solar Incentive (SuSI) program run by the New Jersey Board of Public Utilities, a registered residential rooftop system in the Administratively Determined Incentive (ADI) track earns one SREC-II for every 1,000 kWh (one megawatt-hour) it produces, for a fixed 15-year term (NJBPU ADI program; DSIRE SuSI, as of 2026). DSIRE currently lists the net-metered residential value at about $85 per SREC-II. On a typical 8 kW Edison roof making roughly 10,700 kWh a year, that is on the order of $900 a year in SREC-II earnings, separate from your bill savings.
Note (confirm the live SREC-II value): The program launched at $90 per SREC-II and DSIRE now lists about $85, and the Board adjusts the program over time, so treat $85 as the established recent figure and confirm the current value before you bank on it (DSIRE SuSI, as of 2026). One thing that matters on a lease or PPA: the SREC-IIs are credited to the registered system, so if a company owns your panels, the company is the registered party that receives them, not you. SREC-IIs can also be assigned, which is part of how some financing deals are structured.
| Edison value stream | How it works | Who keeps it |
|---|---|---|
| PSE&G net metering | Exports credited kWh-for-kWh and banked over a 12-month year; surplus trued up at wholesale | The customer of record on the account |
| SREC-II earnings (SuSI) | About $85 per 1,000 kWh produced, fixed 15-year term | The registered system owner (you if you buy; the company on a lease or PPA) |
| Tax exemptions | No 6.625% state sales tax on equipment; no property tax on the added home value | The homeowner |
New Jersey’s solar tax breaks, and the Edison paperwork
Beyond the bill credits and the SREC-II earnings, New Jersey lowers your cost two more ways, and both apply to an Edison home.
- A 100% sales-tax exemption on qualifying solar equipment, with no cap. You claim it by giving the seller New Jersey exemption certificate Form ST-4 instead of paying the state’s 6.625% sales tax (NJ Division of Taxation, SU-6, as of 2026; statute N.J.S.A. 54:32B-8.33).
- A property-tax exemption on the added home value from a qualifying solar system, so your Edison assessment should not rise because of the panels. It is not automatic: the owner files Form CRES, which the installer, the Edison construction official, and the municipal tax assessor sign off on (NJ Division of Taxation, property-tax exemptions, as of 2026; statute N.J.S.A. 54:4-3.113a).
Because these are statewide programs that change over time, we keep the full detail on our New Jersey solar guide and our New Jersey net metering and SREC guide rather than repeating it on every city page.
What the federal tax-credit change means for Edison
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, under the One Big Beautiful Bill Act, so an Edison homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS Residential Clean Energy Credit; IRS Public Law 119-21 FAQ, as of 2026). You will still see search results, and even installer pages, asking whether the 30% credit is going away in 2026; the accurate answer is that the homeowner version already ended after December 31, 2025. What did not change is the part that carries solar in Edison: PSE&G net metering, the SREC-II earnings, the state tax exemptions, and New Jersey’s high electric rates. For the full timeline, see what the federal solar tax-credit change means in 2026.
One federal exception exists, 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 (IRS Clean Electricity Investment Credit, as of 2026). On a leased system you do not file for a federal credit yourself; the company that owns the panels does, if the project qualifies. The 25D homeowner credit, by contrast, ended after December 31, 2025.
Getting an Edison solar permit: plan for a manual review
Edison runs its own permitting, and it is a manual review, not an instant approval. A rooftop solar system in Edison Township is built under the New Jersey Uniform Construction Code (N.J.A.C. 5:23), and the permit packet is reviewed by Edison Township’s own Construction Department in the Municipal Building, under the New Jersey Department of Community Affairs Division of Codes and Standards (Edison Township Code Enforcement; NJ DCA Division of Codes and Standards, as of 2026). In practice that means a building subcode permit and an electrical subcode permit, reviewed by the relevant subcode officials, followed by inspections before the system is energized.
One Edison-specific point worth setting expectations on: New Jersey and Edison have not adopted SolarAPP+ or any instant online solar-permit tool. Some states and cities approve residential solar permits automatically the same day; Edison does not. The township’s own process allows the subcode review to take up to about 20 working days, so build that manual timeline into your plans rather than expecting a same-day approval (Edison Township Code Enforcement, as of 2026). A licensed contractor normally files the permit, the PSE&G interconnection application, and the SREC-II registration for you. If your property sits in a designated historic area, additional review may apply, so confirm current forms, fees, and any zoning questions directly with Edison Township before you sign.
Paying for solar in Edison: cash, loan, lease, or PPA
There is no single right way to pay for solar; the best fit depends on whether you want to own the system and keep the SREC-II earnings yourself, or avoid an up-front cost. You may also see ads for “free solar panels” in Edison, and it is worth being clear that solar is not free; those are almost always lease or PPA offers, a long-term contract with monthly payments rather than a giveaway, and on those the company that owns the panels is the registered party for the net-metering and SREC-II credits. A solar loan is a popular way to own the system with little up front, while a lease or PPA can mean no up-front cost. Because Edison roofs tend to be larger and owner-occupied, the cash or loan ownership case, where you keep both value streams, is often the stronger fit here.
| Path | Up-front cost | Who keeps net metering + SREC-II | Best when |
|---|---|---|---|
| Cash purchase | Full system cost | You, the owner | You want the fastest payback and the most lifetime savings |
| Solar loan | Little to none, financed | You, the owner | You want ownership without paying cash up front |
| Lease or PPA | $0-up-front where eligible | The third-party owner | You prefer no up-front cost and a simpler, fixed monthly bill |
How to choose a solar installer in Edison
Search “solar panels edison nj” and most of the first page is national review sites, directories, and community-solar ads rather than the companies doing the work, so it pays to know how to screen a company directly. Edison sits in an active Middlesex County market with both local New Jersey installers and national lease and PPA brands, which means real competition on price and service. 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 and a licensed electrician on the job.
- A clear workmanship and equipment warranty in writing.
- Real experience with PSE&G interconnection, Edison Township permitting, and SREC-II registration, so your net-metering setup and your earnings paperwork are handled correctly.
- A written production estimate and a transparent quote that models net metering plus the current SREC-II value, not an old figure. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. To see how we research and where our numbers come from, read how MySolarFY works and our data and methodology.
Frequently asked questions
Is solar worth it in Edison in 2026? For most owner-occupied Edison homes with decent sun, yes. Residential electricity in New Jersey averages about 23 cents per kWh (EIA, as of March 2026), and PSE&G’s all-in rate runs closer to 26 cents, so every kilowatt-hour your roof makes offsets an expensive one. A 6 kW Edison system makes about 8,000 kWh a year (NREL PVWatts), and New Jersey pays you twice: PSE&G banks your exports through net metering, and the SREC-II program pays about $85 for every 1,000 kWh you produce for a fixed 15-year term. Our estimate puts payback near seven years with SREC-II earnings counted. Savings depend on your roof, usage, and how you pay, and they are not guaranteed.
How much do solar panels produce on an Edison roof? NREL’s PVWatts model puts a 6 kW system in Edison at about 8,000 kWh a year, modeling 7,974 kWh in ZIP 08817, 8,139 in 08820, and 7,939 in 08837, or roughly 1,336 kWh for every kilowatt of panels (NREL PVWatts, as of 2026). Edison’s larger suburban roofs often fit 8 to 10 kW, which scales production to about 10,700 or 13,400 kWh a year. Your actual output depends on roof pitch, orientation, and shading, so run your own address through the free PVWatts tool or ask an installer for a written, roof-specific production estimate before you size a system.
Does New Jersey pay you for solar? Yes, in two ways that stack. First, PSE&G net metering credits the energy you export kilowatt-hour for kilowatt-hour and banks it across a 12-month contract year, with any year-end surplus trued up at a wholesale rate (PSE&G net metering, as of 2026). Second, the state’s Successor Solar Incentive program issues one SREC-II for every 1,000 kWh your system produces, listed at about $85 each and locked for a fixed 15-year term (DSIRE SuSI, as of 2026). The SREC-IIs are credited to the registered system, so on a lease or PPA the company that owns the panels receives them. The Board adjusts the program over time, so confirm the current value with your installer.
Is the 30% federal solar tax credit going away in 2026? It already ended. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act, so an Edison homeowner who buys solar in 2026 with cash or a loan cannot claim it (IRS, as of 2026). You will see pages and ads that still imply the credit is available; for a 2026 install it is not. 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, SREC-II earnings, and sales and property tax exemptions were not affected.
Do I need a permit to install solar in Edison? Yes. A rooftop solar installation in Edison Township is built under the New Jersey Uniform Construction Code, so your installer pulls construction permits, typically a building subcode permit plus an electrical subcode permit, through Edison Township’s own Construction Department in the Municipal Building, and the work is inspected before it is energized (Edison Township Code Enforcement, as of 2026). New Jersey and Edison have not adopted SolarAPP+ or any instant online permitting, so expect a manual plan review that can take up to about 20 working days, not a same-day approval. A licensed contractor normally handles the permit paperwork, the PSE&G interconnection application, and the SREC-II registration as part of the job. Confirm the current Edison Township process, fees, and timeline before you sign.
What does “no up-front cost” actually mean? It refers to lease and PPA financing, where an eligible homeowner can have no out-of-pocket cost at installation because a third party owns the system and you pay a monthly amount instead. It is not free solar; it is a long-term agreement, usually 20 to 25 years, that may include an annual price escalator, and the total payments can exceed what a cash purchase would cost. On a lease or PPA the company that owns the panels is also the registered party for the SREC-II earnings, not you. It can still be a good fit if you want predictable payments and no up-front spend, but read the contract term, the escalator, and who keeps the incentives before you sign.
Reviewed by the SolarFY Editor. Figures were verified against the linked New Jersey (NJ Board of Public Utilities and DSIRE, NJ Division of Taxation), PSE&G, EIA, NREL, and IRS sources as of June 2026; the SREC-II value is set by the New Jersey Board of Public Utilities and changes over time, PSE&G rates and the net-metering true-up reset on a schedule, and Edison Township sets its own permit fees, so confirm current terms with the Board of Public Utilities, PSE&G, Edison Township, and your installer before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. To see who we are and how we research these pages, read how MySolarFY works and our data and methodology.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, tax advisor, 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 net-metering credits and SREC-II earnings go to the company that owns the system, not the homeowner. The federal residential solar credit (Section 25D) ended for expenditures made after December 31, 2025, so homeowners who install in 2026 do not get it. Solar panels are not free and monthly payments apply. SREC-II values are set by the New Jersey Board of Public Utilities and savings are not guaranteed. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
