- New Jersey residential power runs about 23.49 cents per kWh (EIA, as of March 2026), above the national average, so the bill JCP&L solar offsets is meaningful.
- JCP&L credits exports at the full retail rate, one-for-one, and banks any extra in a Net Meter Bank that rolls forward (FirstEnergy NJ net metering).
- The catch is the annual true-up: once a year, at your account anniversary, JCP&L cashes out any leftover Net Excess Generation at its avoided cost of wholesale power, not the retail rate.
- Time-of-use does not pay a premium on exports: JCP&L offers optional time-of-use rates, but net metering is kWh-based, so exported power offsets imports one-for-one regardless of the hour.
- You also earn SREC-II payments: New Jersey’s statewide SuSI program pays about $85 per SREC-II (one per 1,000 kWh) for 15 years, a rate the state sets and adjusts, so confirm the current figure (DSIRE).
- JCP&L serves about 1.1 million customers across central and northern New Jersey, including the Jersey Shore.
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
If JCP&L is your electric utility in central or northern New Jersey, this is how rooftop solar pays you back in 2026. JCP&L, a FirstEnergy company, credits the power you export under New Jersey’s net-metering rules, and on top of that you earn the state’s SREC-II payments for years. This page also clears up a common question about time-of-use rates. New Jersey’s above-average rates make solar worth it, so here is what JCP&L pays, how to connect, and how to tell if your home is a good fit.
JCP&L New Jersey at a glance
JCP&L runs the net-metering and interconnection process in its territory, while the SREC-II incentive is a statewide program you also tap into.
| Detail | What to know |
|---|---|
| Service territory | Central and northern New Jersey, including the Jersey Shore (Monmouth, Ocean) and northwest counties |
| Electric customers | About 1.1 million, a FirstEnergy company |
| Net metering | Full retail 1:1 credit; excess banks in a Net Meter Bank that rolls forward |
| Annual true-up | Leftover Net Excess Generation cashed out yearly at avoided wholesale cost, not retail |
| Time-of-use | Optional TOU rates exist, but exports are credited per kWh, not at a peak premium |
| SREC-II (statewide SuSI) | About $85 per SREC-II (one per 1,000 kWh) for 15 years, state-set and adjusted |
| Before you switch on | JCP&L must issue Permission to Operate |
| Source | FirstEnergy NJ net metering |
Two ways your JCP&L solar pays. First, net metering offsets your bill at the full retail rate for the power you export. Second, the statewide SuSI program pays you separately for production, about $85 for every 1,000 kWh your system makes, for 15 years. The two stack, which is why New Jersey is a strong solar state even now that the federal homeowner credit has ended. Estimate your roof’s likely output with NREL’s free PVWatts calculator, since production drives both your bill credits and your SREC-II income.
How JCP&L credits the power you send back
Net metering is full retail, with a yearly catch. JCP&L installs a bidirectional meter that measures both the power you draw from the grid and the power your solar sends back. Each exported kilowatt-hour offsets one you would otherwise buy, at the full retail rate, and any monthly excess goes into a Net Meter Bank that carries forward to later bills (FirstEnergy NJ net metering). The detail to understand is the annual true-up: once a year, on your net-metering anniversary, JCP&L cashes out whatever is left in your bank at its avoided cost of wholesale power, which is the average market price in its zone and is well below the retail rate, then resets the bank to zero. Because that year-end rate is low, the smart move is to size a system close to your annual usage rather than oversizing it to build a big surplus. For the mechanics of export credits, see how net metering credits your solar exports.
| What you earn | How it is valued | Who receives it |
|---|---|---|
| Monthly net-metering credits | Full retail rate, one-for-one, banked and rolled forward | The JCP&L account holder |
| Year-end Net Excess Generation | Avoided cost of wholesale power, below retail | The JCP&L account holder |
| SREC-II payments (SuSI) | About $85 per 1,000 kWh, for 15 years | The registered system owner |
To see how the bill credit lowers your monthly cost, read how solar lowers your electricity bill, and to weigh payback, see the financial case for whether solar panels are worth it.
Does time-of-use change your solar credit?
This is a common question for JCP&L customers, and the honest answer is no, not on your exports. JCP&L offers optional time-of-use generation rates, but New Jersey net metering is measured in kilowatt-hours: every kWh you export offsets a kWh you import on a one-for-one basis, no matter what hour it happens. There is no peak-versus-off-peak premium on the dollar value of your exported solar under JCP&L’s New Jersey net metering, and any year-end surplus is paid at a single avoided-cost rate. If a sales pitch says you will earn more by exporting at peak under TOU, treat it as Pennsylvania logic that does not apply here.
See what solar programs are available in your ZIP code
Solar incentives, net-metering credits, installer availability, and electric rates change by utility and location. Enter your ZIP and we’ll match you with licensed installers who serve your area.
Free to check. About a minute. No credit pull to check.
Submitted securely and used to match you with licensed installers in your area. Some homeowners may qualify for $0-up-front lease/PPA options where available.
How to connect solar to JCP&L in New Jersey
Connecting a home system to JCP&L follows a set order under New Jersey’s uniform interconnection rules, and the key rule is that you cannot turn the system on until JCP&L grants Permission to Operate. The general path is:
- Interconnection application. You or your installer file an interconnection application with JCP&L, including a one-line diagram and site plan. Most residential rooftop systems of 10 kW or less qualify as Level 1, with no application fee.
- Review and approval. JCP&L reviews the application and approves it. You should not energize before approval.
- Install and inspect. The system is installed under local permits and passes your municipal electrical inspection, which produces a Certificate of Completion.
- Meter set. JCP&L installs a bidirectional net meter that measures both delivered and received energy.
- Permission to Operate. JCP&L issues written Permission to Operate. The system may not run on the grid before this.
A licensed installer normally manages this whole process for you, along with your separate SuSI enrollment. For the questions to ask, see the right questions to ask a solar installer.
The rest of New Jersey’s solar benefits on a JCP&L account
Beyond net metering, New Jersey gives JCP&L customers the same statewide benefits as any other utility’s customers:
- SuSI / SREC-II payments of about $85 per 1,000 kWh for 15 years, set by the Board of Public Utilities and adjusted over time, so confirm the current rate (DSIRE).
- A 100% sales-tax exemption on qualifying solar equipment, off New Jersey’s 6.625% rate.
- A 100% property-tax exemption on the added home value from a qualifying solar system.
The SREC-II payments and the tax exemptions go to the system owner, so on a lease or PPA the company that owns the panels keeps them, while the net-metering bill credit still follows your account. New Jersey is one of the stronger solar states because these benefits stack on top of net metering.
What changed federally, and what it means for JCP&L customers
The federal homeowner credit is gone, but New Jersey’s programs are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a JCP&L customer who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ; SEIA). JCP&L net metering and the statewide SuSI payments and tax exemptions were not affected, and together they carry the payback. 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, and it runs for projects placed in service through 2027, with a begin-construction safe harbor by July 4, 2026 (IRS Clean Electricity Investment Credit; SEIA tax policy). For a leased system on a JCP&L account 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.
How to choose a solar installer in JCP&L territory
Central and northern New Jersey is a deep solar market, so you have many licensed installers to compare. Rather than chasing a “best” list, screen any installer against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid New Jersey Home Improvement Contractor (HIC) registration and electrical licensing.
- A clear workmanship and equipment warranty in writing.
- Real experience with JCP&L interconnection and New Jersey’s SuSI registration, so the paperwork and Permission to Operate go smoothly.
- A written production estimate and a transparent quote that includes your expected SREC-II income. 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.
Looking at the specifics? See local solar guides for Toms River and Morristown in this service area.
Frequently asked questions
How does JCP&L net metering work in New Jersey?
JCP&L credits the power you export at the full retail rate, one kilowatt-hour for one kilowatt-hour, and banks any monthly excess in a Net Meter Bank that rolls forward (FirstEnergy NJ net metering). Once a year, on your net-metering anniversary, JCP&L cashes out any leftover banked credits at its avoided cost of wholesale power, which is below retail, and resets the bank. Because that year-end rate is low, the best results come from sizing a system close to your yearly usage rather than oversizing it.
Does time-of-use change my JCP&L solar credit?
Not on your exports. JCP&L offers optional time-of-use generation rates, but New Jersey net metering is measured in kilowatt-hours, so every kWh you export offsets a kWh you import one-for-one, no matter the hour (FirstEnergy NJ net metering). There is no peak-versus-off-peak premium on the dollar value of your exported solar, and any year-end surplus is paid at a single avoided-cost rate. If you are on a time-of-use rate, it changes what you pay for the power you import, not the per-kWh value of what you export.
What happened to the federal solar tax credit?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act. A JCP&L customer who buys solar in 2026 with cash or a loan cannot claim it. 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. JCP&L net metering and New Jersey’s SREC-II payments were not affected. See our guide on what the federal solar tax credit change means in 2026.
Do JCP&L customers earn New Jersey SREC-II payments?
Yes. SREC-II payments come from New Jersey’s statewide Successor Solar Incentive (SuSI) program, run by the Board of Public Utilities, not from JCP&L, so JCP&L customers qualify on the same terms as any other utility’s customers (DSIRE). A net-metered residential system earns one SREC-II for every 1,000 kWh produced, valued at about $85 each for 15 years. The BPU sets and adjusts that rate, so confirm the current figure before you sign, and note the payments go to the registered system owner, so a lease or PPA customer does not receive them.
How do I connect solar to JCP&L?
You or your installer file an interconnection application with JCP&L, including a one-line diagram, JCP&L reviews and approves it, the system is installed under local permits and passes a municipal inspection, JCP&L sets a bidirectional meter, and then JCP&L issues Permission to Operate (FirstEnergy NJ solar). You cannot turn the system on until you have that permission. Most residential systems of 10 kW or less qualify as Level 1 with no application fee, and a licensed installer usually handles the paperwork and your SuSI enrollment for you.
Do I qualify for JCP&L solar credit if I lease or sign a PPA?
Net-metering credits follow the JCP&L account, so the account holder sees them whether you own, lease, or sign a PPA. The SREC-II payments and New Jersey’s tax exemptions go to the registered system owner, so on a lease or PPA the third-party company keeps the SREC-II income, not you, while your benefit is a lower or fixed power price with no up-front cost. If you want the SREC-II income in your own name, owning the system through cash or a loan is the path that captures it.
Reviewed by the MySolarFY team. Figures were verified against the linked New Jersey (JCP&L / FirstEnergy, NJ Board of Public Utilities, NJ Clean Energy Program), DSIRE, EIA, and IRS sources as of June 2026; the net-metering true-up rate and the SREC-II incentive reset over time, so confirm current terms with JCP&L and the NJ 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 SREC-II payments and 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.
