- PSE&G power is expensive, which is what makes solar worth it. 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).
- PSE&G kept full-retail net metering. Each kWh you export is credited one for one at the retail rate and banked across a 12-month contract year, with an anniversary true-up (PSE&G net metering, as of 2026).
- New Jersey pays you to produce, through SREC-II. A registered residential system earns one SREC-II per 1,000 kWh, valued at about $85 each and locked for 15 years from registration, on top of net metering (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 (NJDEP Clean Energy; EnergySage NJ incentives, as of 2026).
- Renting or have a tough roof? Community solar is a real option in Newark. New Jersey made its Community Solar Energy Program permanent and is expanding it, with a requirement that most subscribers be low-to-moderate-income households (NJDEP Clean Energy, as of 2026).
- The 30% federal homeowner credit (Section 25D) ended after December 31, 2025 (IRS, as of January 1, 2026), so a Newark homeowner who buys solar in 2026 cannot claim it.
Newark homeowners have two things going for them that make rooftop solar pay: high PSE&G electric bills, and a New Jersey program that actually pays you to produce solar power on top of crediting your bill. Your utility, PSE&G (also written PSEG), still uses full-retail net metering, so every kilowatt-hour you send to the grid offsets one you would have bought. Then the state’s SREC-II earnings stack on top of that. This page covers what solar really costs in Newark, how PSE&G credits your power, the New Jersey earnings and tax breaks that change the math, and the realities of going solar on a dense city roof, including community solar if you rent or your roof will not work, then you can check your own address in about a minute.
Why Newark’s power bills make solar pay
The reason solar pays in Newark is the size of the PSE&G bill it offsets. 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 a Newark 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 a Newark home spending $150 or more a month on electricity is a strong solar candidate. To see the exact cents on your own bill, read the supply and delivery lines on your PSE&G statement, since both reset on a schedule.
Your production is what turns that high rate into savings. Newark gets a solar resource typical of northern New Jersey, and a well-placed roof offsets a large share of a normal home’s annual use. Because output depends on your roof’s pitch, shading, and orientation, and because Newark’s dense blocks and taller buildings can add shading, estimate your specific roof with NREL’s free PVWatts calculator rather than a generic number. Your production also drives your SREC-II earnings, since those are paid per 1,000 kWh you generate, so getting the estimate right matters twice.
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PSE&G keeps full-retail net metering, and that matters
New Jersey is one of the states that kept the simple, generous version of net metering, and that is good news for Newark. PSE&G credits every kilowatt-hour you export to the grid at the full retail rate, one for one, and banks it as a credit against the power you pull at night or on cloudy days (PSE&G net metering, as of 2026). Credits build month to month across a 12-month contract year, and at your anniversary PSE&G runs a true-up that settles any leftover credits at a wholesale rate and resets the balance to zero. The practical takeaway is that a system sized to your annual usage can wipe out most of your supply charges across the year. This is a real advantage over states that scaled net metering back; Connecticut, for example, replaced retail net metering with a lower export tariff, while New Jersey did not. For the mechanics, see how net metering credits your solar exports, and for the full PSE&G rules, see our PSE&G solar guide.
The SREC-II earnings: New Jersey pays you to produce
Here is the part that genuinely sets New Jersey apart from most states. On top of net metering, New Jersey pays you a separate earning for the solar electricity you generate, through the Successor Solar Incentive (SuSI) program run by the New Jersey Board of Public Utilities. A registered residential rooftop system falls under the program’s Administratively Determined Incentive track and earns one SREC-II for every 1,000 kWh (one megawatt-hour) it produces (DSIRE Successor Solar Incentive (SuSI), as of 2026). The Board set the residential SREC-II value at about $85 each for the recent energy year, and once you register, that value is locked for 15 years, so later rate changes do not affect your system.
Note (confirm the current SREC-II rate): The New Jersey Board of Public Utilities resets the residential SREC-II value by energy year, and the rate for the energy year that began June 1, 2026 was still pending a Board order as of mid-2026, so treat $85 as the established recent value and confirm the current figure before you bank on it (DSIRE Successor Solar Incentive (SuSI), as of 2026). One more thing that matters on a lease or PPA: only the registered system owner earns these SREC-IIs, so if a company owns your panels, the company keeps the credits, not you.
| Newark value stream | How it works | Who keeps it |
|---|---|---|
| PSE&G net metering | Exports credited 1:1 at the retail rate, banked over a 12-month year with an anniversary true-up | The customer of record on the account |
| SREC-II earnings (SuSI) | About $85 per 1,000 kWh produced, locked 15 years from registration | 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
Beyond the bill credits and the SREC-II earnings, New Jersey lowers your cost two more ways, and both apply to a Newark home.
- A 100% sales-tax exemption on qualifying solar equipment, which saves New Jersey’s 6.625% sales tax with no cap (NJDEP Clean Energy; EnergySage NJ incentives, as of 2026).
- A property-tax exemption on the added home value from a qualifying residential solar system, so your Newark assessment should not rise because of the panels (EnergySage NJ incentives, as of 2026).
Because these are statewide programs that change over time, we keep the full detail on our New Jersey solar guide and our PSE&G solar guide rather than repeating it on every city page.
What the federal tax-credit change means for Newark
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 a Newark homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS Residential Clean Energy Credit; SEIA, 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 Newark: PSE&G’s full-retail 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. The 25D homeowner credit, by contrast, ended after December 31, 2025.
Going solar on a Newark home, or joining community solar
Newark is New Jersey’s largest city, and its housing is what shapes its solar projects. From the row homes and multifamily buildings of the Ironbound to the older houses of Forest Hill and Weequahic, Newark’s roofs are denser and more varied than a typical suburb, and many residents rent. That mix rarely rules out solar, but it adds a few checks. Older roofs may need a structural look or a re-roof before panels go on, and many older homes still run a 100-amp electrical service that may need an upgrade to carry a modern system, a battery, or EV charging. A flat roof, common on the city’s multifamily buildings, usually means a ballasted or tilted mounting system rather than a flush mount.
Note for renters and two-to-four-unit owners: If you rent, your roof is shaded, or you own a multi-unit building where the roof is shared, you do not have to miss out. New Jersey made its Community Solar Energy Program permanent and is expanding it, and you subscribe to a share of a larger local solar project and get credits on your PSE&G bill without putting anything on your own roof (NJDEP Clean Energy, as of 2026). The state designed the program so most subscribers are low-to-moderate-income households, which makes it especially relevant in a city like Newark. PSE&G runs its own community solar page, and it is worth comparing a subscription against a rooftop system if your roof is not a clear fit.
| Newark home factor | What to plan for |
|---|---|
| Older row home or multifamily (Ironbound, Forest Hill, Weequahic) | A structural check or re-roof before install; confirm remaining roof life |
| 100-amp service panel | A likely electrical service upgrade to carry solar plus a battery or EV charging |
| Flat roof or shared roof on a 2-to-4-unit building | A ballasted or tilted mount; confirm who owns the roof and how the meters are set up |
| You rent, or the roof is too shaded | Community solar: a subscription with bill credits, no rooftop system needed |
Paying for solar in Newark: 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 Newark, 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 keeps the 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. To weigh the long-run numbers, see whether solar panels are worth it.
| 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 Newark
Search “newark nj solar panels” and most of the first page is national review sites and directories rather than the companies doing the work, so it pays to know how to screen a company directly. Newark has an active market of licensed installers, from local New Jersey companies to 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 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.
Weighing your options across the area? Compare nearby solar markets with our local guides for Trenton, Paterson, New Brunswick, Camden, and Cherry Hill.
Frequently asked questions
Is solar worth it in Newark in 2026?
For most owner-occupied Newark 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. New Jersey also pays you twice for going solar: PSE&G credits your exports at the full retail rate through net metering, and the state’s SREC-II program pays about $85 for every 1,000 kWh you produce, locked for 15 years. Savings depend on your roof, usage, and how you pay, and they are not guaranteed, but the high rates plus two stacked incentives make Newark a strong solar market.
Does New Jersey pay you for solar?
Yes, in two ways that stack. First, PSE&G net metering credits every kilowatt-hour you export to the grid at the full retail rate, banked across a 12-month contract year (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, worth about $85 each and locked for 15 years from registration (DSIRE SuSI, as of 2026). Only the registered system owner earns the SREC-IIs, so on a lease or PPA the company that owns the panels keeps them. The Board of Public Utilities resets the SREC-II value by energy year, so confirm the current figure 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 a Newark 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 tax exemptions were not affected.
How does PSE&G net metering work?
PSE&G credits every kilowatt-hour you send to the grid at the full retail rate, one for one, and banks it against the power you draw when your panels are not producing (PSE&G net metering, as of 2026). Your credits build month to month across a 12-month contract year, and at your anniversary PSE&G runs a true-up that settles any remaining credits at a wholesale rate and resets the balance to zero. Because the credit is at full retail value, a system sized to your annual usage can offset most of your supply charges over the year. New Jersey kept this full-retail structure when some states moved to lower export rates, which is part of why the New Jersey payback case is strong.
Can I go solar if I rent in Newark or my roof will not work?
Yes, through community solar. New Jersey made its Community Solar Energy Program permanent and is expanding it, and instead of putting panels on your own roof you subscribe to a share of a larger local solar project and receive credits on your PSE&G bill (NJDEP Clean Energy, as of 2026). The state built the program so that most subscribers are low-to-moderate-income households, which makes it a real fit for many Newark renters and for owners whose roofs are shaded, flat, or shared in a multi-unit building. It is worth comparing a community-solar subscription against a rooftop system to see which saves you more.
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 also keeps 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 MySolarFY team. Figures were verified against the linked New Jersey (NJDEP, NJ Board of Public Utilities via DSIRE), PSE&G, EIA, and IRS sources as of June 2026; the SREC-II value is set by the Board of Public Utilities and resets by energy year, and PSE&G rates change on a schedule, so confirm current terms with the Board of Public Utilities, PSE&G, and your installer 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 net-metering credits and SREC-II earnings 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. 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.
