Updated for 2026.
The quick answer
- New Jersey pays solar twice, and that is the whole story. You get full-retail net metering on your PSE&G bill plus a separate SREC-II payment for every megawatt-hour your panels make.
- Your power is expensive, which is what makes solar pay. New Jersey residential electricity averages about 23.49 cents per kWh, well above the national average.
- SREC-II pays about $85 per megawatt-hour for 15 years. Each 1,000 kWh your system produces earns one SREC-II, set by the state at roughly $85 and paid for a fixed 15-year term.
- New Jersey does not tax your solar. The state exempts solar equipment from its 6.625% sales tax and exempts the added home value from property tax.
- Trenton sits in the fast lane on permitting. A 2025 state law created a Smart Solar Permitting Platform, and the city issues single-trade permits within about 48 hours.
- The 30% federal homeowner credit (Section 25D) ended after December 31, 2025, so a Trenton homeowner who buys solar in 2026 cannot claim it.
New Jersey is one of the best states in the country to put solar on your roof, and the reason is unusual: the state pays you twice. Your PSE&G bill credits the power your panels send back at the full retail rate, and on top of that New Jersey writes you a separate check for 15 years through its SREC-II program. Add some of the highest electricity prices in the nation, a state sales-tax and property-tax exemption, and a brand-new fast-track permitting law signed right here in the capital, and a Trenton rooftop has a strong case in 2026 even though the federal homeowner tax credit ended after December 31, 2025. This page covers what solar actually costs in Trenton, how PSE&G net metering and SREC-II stack up, the incentives that still apply, and how to screen an installer, then you can check your address in about a minute.
Trenton solar at a glance for 2026
- New Jersey pays solar twice, and that is the whole story. You get full-retail net metering on your PSE&G bill plus a separate SREC-II payment for every megawatt-hour your panels make (PSE&G; NJBPU, as of June 2026).
- Your power is expensive, which is what makes solar pay. New Jersey residential electricity averages about 23.49 cents per kWh (EIA, as of March 2026), well above the national average.
- SREC-II pays about $85 per megawatt-hour for 15 years. Each 1,000 kWh your system produces earns one SREC-II, set by the state at roughly $85 and paid for a fixed 15-year term (NJBPU Cost Cap and ADI order, as of June 2026).
- New Jersey does not tax your solar. The state exempts solar equipment from its 6.625% sales tax and exempts the added home value from property tax (DSIRE New Jersey, as of June 2026).
- Trenton sits in the fast lane on permitting. A 2025 state law created a Smart Solar Permitting Platform that can instantly approve code-compliant residential solar, and the city issues single-trade permits within about 48 hours (NJ P.L. 2025 c.174; City of Trenton, as of June 2026).
- The 30% federal homeowner credit (Section 25D) ended after December 31, 2025 (IRS, as of January 1, 2026), so a Trenton homeowner who buys solar in 2026 cannot claim it.
Is solar worth it in Trenton in 2026?
For most owner-occupied Trenton homes with decent sun, yes, because New Jersey stacks two payments on top of high electricity prices. New Jersey residential electricity averages about 23.49 cents per kWh (EIA, as of March 2026), one of the higher rates in the country, so every kilowatt-hour your roof makes offsets an expensive one from the grid. On a typical Trenton home spending $150 or more a month on electricity, the bill savings alone make a strong case, and the SREC-II payments below are extra.
Here is the bill math, as an illustration only. A New Jersey home that uses about 9,000 kWh a year spends roughly $2,100 a year on electricity at 23.49 cents per kWh. A rooftop system sized to offset most of that cuts the bill by a large share, and your production also earns SREC-II income on top. Your own number depends on your roof’s pitch, shading, and orientation, so estimate your specific output with NREL’s free PVWatts calculator rather than trusting a generic figure. We do not publish a fabricated production number for your ZIP; PVWatts gives you a real one for your roof in a couple of minutes.
See what solar programs are available in your Trenton ZIP code
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Your Trenton utility is PSE&G, and it credits you at full retail
Trenton is PSE&G territory, and New Jersey still runs full retail net metering, which is the friendliest version of the rule. When your panels make more than your home uses, PSE&G adds one credit to your bank for every excess kilowatt-hour and applies it against later months on a one-to-one basis, valued at the retail rate you would otherwise pay (PSE&G net metering, as of June 2026). That is the part many other states have already scaled back, so it is worth knowing New Jersey kept it. For how the mechanics work in general, see how net metering credits your solar exports, and for the utility-level detail, our PSE&G New Jersey net metering and rates guide.
The one wrinkle is what happens to a year-end surplus. Each customer has a 12-month contract year that starts when the net meter is installed, and at that anniversary PSE&G trues up the account. Any credits you used during the year were worth full retail, but if you have leftover credits at the true-up, those are paid out at New Jersey’s Clean Energy Program market price, based on hourly PJM wholesale prices and excluding delivery and system charges, which is below retail (PSE&G net metering, as of June 2026). The practical takeaway is to size your system close to your annual usage so most of your production offsets retail power rather than rolling into a lower-value year-end payout.
| When your solar credit is used | How PSE&G values it |
|---|---|
| Offsetting your own usage within the contract year | Full retail rate, one-to-one per kWh |
| Left over as net surplus at the 12-month true-up | NJ Clean Energy Program market price (PJM hourly, excludes delivery and system charges), below retail |
How New Jersey’s SREC-II pays you for 15 years
This is the part that sets New Jersey apart: you get paid for the electricity you generate, separate from the bill savings. Under the state’s Successor Solar Incentive (SuSI) program, a net-metered residential system earns one SREC-II for every 1,000 kWh (one megawatt-hour) it produces, and the New Jersey Board of Public Utilities sets the residential value at about $85 per SREC-II, paid for a fixed 15-year term (NJBPU Cost Cap and ADI order, May 22, 2024, as of June 2026). The value is set by Board order and was trimmed from $90 to $85 in 2024, so treat $85 as the current figure and confirm it with your installer, since the state can reset it again.
Stacked on top of net metering, that turns into real money. As an illustration, if your roof produces about 9 megawatt-hours (9,000 kWh) in a year, that is roughly 9 SREC-IIs, or about $765 a year, which comes to roughly $11,500 across the full 15-year term, on top of the retail-rate bill savings from net metering. That is an example, not a quote, since your real production depends on your roof; check it with PVWatts and confirm the current SREC-II value before you sign. The two benefits work together, which is why New Jersey’s payback math is among the strongest in the country.
| How New Jersey pays your solar | What it does | 2026 value | How long |
|---|---|---|---|
| PSE&G full-retail net metering | Credits the grid power you offset | About 23 cents per kWh (NJ average retail) | Ongoing, while you own the system |
| SREC-II (SuSI program) | Pays you per megawatt-hour you produce | About $85 per SREC-II, one per 1,000 kWh | Fixed 15-year term |
Note: The SREC-II value is administratively set by the NJBPU and changes by Board order (it dropped from $90 to $85 in the May 2024 order), so the number above is current as of June 2026, not a guarantee for the future (NJBPU, as of June 2026). Your installer registers your system in the program and can confirm the value locked in for your 15-year term.
New Jersey solar incentives that still apply in Trenton for 2026
On top of the two payments, New Jersey skips two taxes that other states charge. Both apply to a qualifying residential system on a Trenton home, and both go to the system owner, which matters if you lease.
- A 100% sales-tax exemption on solar energy equipment, so you do not pay New Jersey’s 6.625% sales tax on the panels, inverter, and racking (DSIRE New Jersey; N.J.S.A. 54:32B-8.33, as of June 2026).
- A property-tax exemption on the added value a qualifying solar system gives your home, so a Trenton install does not raise your property-tax bill even though it can raise your home’s value (DSIRE New Jersey; N.J.S.A. 54:4-3.113a, as of June 2026).
Because these benefits are statewide, we keep the full detail on our solar costs and incentives across New Jersey guide rather than repeating all of it here. Homeowners in nearby PSE&G cities can also compare notes with our Newark solar guide and Jersey City solar guide.
You can also compare a different New Jersey utility market in our Atlantic City solar guide.
What the end of the federal tax credit means for Trenton
You will see this question all over the Trenton search results, so here is the straight answer. 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 Trenton homeowner who buys solar with cash or a loan in 2026 cannot claim that 30% federal credit (IRS Residential Clean Energy Credit, as of 2026). Searches like “is the 30% solar tax credit going away” are common right now; the accurate answer for 2026 is that the homeowner version already ended after 2025.
One federal credit still exists, but 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 lease or PPA, the company that owns the panels takes that credit. The 25D homeowner credit, by contrast, ended after December 31, 2025. The good news for Trenton is that the federal change did not touch net metering, SREC-II, or the state tax exemptions, so New Jersey’s local payback case still holds. MySolarFY does not provide tax advice; confirm your situation with a tax professional, and see what the federal solar tax credit change means in 2026.
Permitting solar in Trenton: the state capital’s fast-track
Trenton homeowners benefit from a permitting change that was signed into law in their own city. In 2025 New Jersey enacted a Smart Solar Permitting law (Assembly Bill A5264, P.L. 2025 c.174) directing the state to create a Smart Solar Permitting Platform that automatically reviews code-compliant residential solar applications and can issue permits almost instantly (NJ P.L. 2025 c.174, as of June 2026). The goal is to cut the weeks of plan review that used to slow projects down, and local agencies must accept applications through the state platform or an equivalent. At the city level, the City of Trenton’s Division of Technical Services issues single-trade work permits within about 48 hours (City of Trenton, as of June 2026).
Solar is not theoretical here, the state runs it on its own roofs. The New Jersey Department of Environmental Protection operates a 184 kW rooftop solar array at its headquarters in Trenton (NJDEP, as of June 2026), a working example of a city rooftop putting out real power. A good local installer will handle the state and city permitting for you and will know how to register your system for SREC-II and PSE&G interconnection.
Paying for solar in Trenton: cash, loan, lease, or PPA
There is no single right way to pay for solar; it comes down to whether you want to own the system and keep the incentives, or skip the up-front cost. If you own the system, with cash or a loan, you keep the SREC-II payments and the New Jersey tax exemptions and you control the system. A lease or PPA can mean no up-front cost for eligible homeowners, but it is a long-term agreement with monthly payments, not free solar, and the company that owns the panels collects the SREC-II income and tax benefits, not you. To weigh the long-run numbers, see the financial case for whether solar panels are worth it and how solar lowers your electricity bill.
| Path | Up-front cost | Who keeps SREC-II + NJ tax benefits | Best when |
|---|---|---|---|
| Cash purchase | Full system cost | You, the owner | You want the fastest payback and the most lifetime value |
| 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 Trenton
Trenton has a deep market of installers, from New Jersey companies to national brands, which is good for your price but means you have to screen carefully. Rather than chasing a “best installer” list, screen any company against objective criteria:
- NABCEP certification, the industry’s professional standard for solar installers.
- A valid New Jersey Home Improvement Contractor (HIC) registration and the proper electrical licensing.
- Real experience with PSE&G interconnection, SREC-II registration, and New Jersey and Trenton permitting, so your net metering, your incentive payments, and your Permission to Operate all go smoothly.
- A clear workmanship and equipment warranty in writing.
- A written production estimate and a transparent quote that uses today’s SREC-II value, not an old one. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve the Trenton area so you can compare real local quotes side by side, with no obligation.
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Frequently asked questions
Is it worth getting solar panels in New Jersey?
For most owner-occupied homes with decent sun, yes, and New Jersey is one of the stronger states for it. Residential electricity averages about 23.49 cents per kWh (EIA, as of March 2026), well above the national average, so the bill savings are large, and the state layers two payments on top: full-retail net metering through PSE&G and a SREC-II payment of about $85 per megawatt-hour for 15 years (NJBPU, as of June 2026). Savings are not guaranteed and depend on your roof, usage, and how you pay, but the combination of a high rate, net metering, and SREC-II is what makes New Jersey’s payback among the best in the country.
Can you get solar panels at no cost in New Jersey?
Not for free. There is no program that hands Trenton homeowners a system at no cost, and any ad that promises one is overstating it. What does exist is no-up-front-cost financing for eligible homeowners through a lease or power purchase agreement (PPA), where you pay nothing at installation and instead make monthly payments, while the company that owns the system keeps the SREC-II income and tax benefits. Solar panels are not free; a lease or PPA is a long-term agreement, and owning the system with cash or a loan is what lets you keep New Jersey’s incentives yourself. Check what you qualify for before deciding.
How does the SREC-II program work in New Jersey?
Under the state’s Successor Solar Incentive (SuSI) program, your system earns one SREC-II for every 1,000 kWh (one megawatt-hour) it produces, and the New Jersey Board of Public Utilities sets the residential value at about $85 per SREC-II, paid for a fixed 15-year term (NJBPU Cost Cap and ADI order, as of June 2026). It is separate from your bill savings, so you collect it on top of net metering. The value is set by Board order and was reduced from $90 to $85 in 2024, so confirm the current figure with your installer, who registers your system in the program.
Who is my electric utility for solar in Trenton, and how does net metering work?
PSE&G. Trenton is in PSE&G’s New Jersey electric territory, and New Jersey requires full-retail net metering, so PSE&G credits each excess kilowatt-hour your panels export at the retail rate and banks it to offset later months on a one-to-one basis (PSE&G, as of June 2026). Each customer has a 12-month contract year ending on an anniversary true-up; credits you use within the year are worth full retail, but any surplus left at the true-up is paid at New Jersey’s Clean Energy Program market price, based on PJM wholesale prices and below retail. Sizing your system close to your annual usage keeps most of your production at the higher value.
Is the 30% solar tax credit gone for 2026?
Yes, for homeowners. 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 Trenton homeowner who installs solar in 2026 cannot claim it (IRS, as of 2026). You will see search results asking whether the credit is being taken away; the accurate answer is that the homeowner version already ended after 2025. A separate commercial credit, Section 48E, can apply to a leased or PPA system, but the business that owns it claims the credit, not you. New Jersey’s net metering, SREC-II, and tax exemptions were not affected. MySolarFY does not provide tax advice; confirm your situation with a tax professional.
Do I need a permit for solar in Trenton, and how long does it take?
Yes, a residential solar install needs a permit, but New Jersey has made it faster. A 2025 state law (P.L. 2025 c.174) created a Smart Solar Permitting Platform that can automatically review and approve code-compliant residential systems, and the City of Trenton issues single-trade work permits within about 48 hours (NJ Legislature; City of Trenton, as of June 2026). Your installer normally pulls the permits, handles the state and city paperwork, and coordinates PSE&G interconnection and your final inspection, so the process is largely handled for you. The fast-track is one reason a Trenton project can move quickly once you choose an installer.
Reviewed by the MySolarFY team. Figures were verified against the linked EIA, PSE&G, NJBPU, NJ Division of Taxation, NJ Legislature, and IRS sources as of June 2026; the SREC-II value, net-metering true-up terms, and permitting rules can change, so confirm current terms with PSE&G, the NJBPU, 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, tax advisor, or government program, and we do not provide tax advice. The federal residential solar tax credit (Section 25D) ended for expenditures made after December 31, 2025, so homeowners who install solar in 2026 cannot claim it. “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, and on a lease or PPA the SREC-II income and tax benefits go to the company that owns the system, not the homeowner. Solar panels are not free and monthly payments apply. Incentives, savings, and rates vary, change over time, and are not guaranteed. See our full disclaimer.
