What New Jersey still offers after the federal credit ended
Every incentive on this page is verified against New Jersey government sources - and the expired ones salespeople still quote are called out.
The 30% federal solar tax credit ended for installations finished after December 31, 2025 - Paterson systems completed in 2026 get $0 from it.
Under New Jersey's export rules, compensation for surplus power decides the payback - which typically runs 10-14 years on unsubsidized 2026 math.
Installed home solar for Paterson homeowners averages about $2.58 a watt across the U.S. marketplace - roughly $30,960 for a 12 kW system before incentives.
The federal Residential Clean Energy Credit - the 30% one every solar ad still quotes - was repealed by the One Big Beautiful Bill Act signed July 4, 2025. Per the IRS, it is not available for any system placed in service after December 31, 2025, and 'placed in service' means the installation completion date, not the contract date.
If a salesperson in Paterson tells you a 30% federal tax credit applies to your 2026 installation, they are quoting a dead law. What may still exist: New Jersey's own incentives and tax treatment, listed below, and lease/PPA arrangements where a company claims commercial credits - in which case the credit belongs to them, not you.
The 2026 numbers
| System size | Installed price (marketplace avg) | Notes |
|---|---|---|
| 6 kW | $15,480 | Small roof / low usage |
| 8 kW | $20,640 | Typical starter system |
| 10 kW | $25,800 | Family home with AC |
| 12 kW | $30,960 | Large home / EV charging |
| Home battery (optional) | $12,000-$16,000 | Backup power + self-consumption |
Get solar quotes for Paterson
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New Jersey rules that decide your payback
| Rule | New Jersey status |
|---|---|
| Export compensation (net metering) | Full retail-rate net metering: homeowners receive full retail credit on their utility bill for every kWh their system produces over a 12-month annualized cycle, systems must be sized not to exceed the customer's annual electric needs, and any excess generation existing when a customer switches suppliers or changes their anniversary date is credited at the wholesale Locational Marginal Price rather than retail. |
| State incentive | Successor Solar Incentive (SuSI) Program - Administratively Determined Incentive (ADI) sub-program, which pays residential net-metered systems SREC-IIs for 15 years; the Board cut the residential rate from $85/MWh to $77/MWh for all registrations received on or after July 27, 2026, and opened a 300 MW residential block for Energy Year 2027 on June 1, 2026 (first-come, first-served until subscribed or June 1, 2027) |
| Sales tax on the system | Exempt |
| Property tax on added home value | Excluded |
The residential ADI block is chronically oversubscribed - registrations ran ~5.2 MW/week in EY2026 and the Board had to move 35 MW from the non-residential segment in April 2026 to keep the residential block from closing early - so homeowners should confirm block capacity remains before signing.
This guide is research, not advice: an independent summary of published prices and state rules. It is not an installer, lender or tax advisor - verify incentive eligibility with a licensed tax professional before relying on it.
What this means for Paterson roofs
Beware of any 2026 payback estimate that looks as good as the 2025 ones: with the federal credit gone, a third of the old subsidy math vanished. If a sales projection has not gotten noticeably worse since 2025, it is hiding something - usually an inflated utility-rate escalation assumption.
This guide is research, not advice: an independent summary of published prices and state rules. It is not an installer, lender or tax advisor - verify incentive eligibility with a licensed tax professional before relying on it.
Getting Paterson quotes
Marketplace platforms collect bids from multiple NJ installers against the same spec, which is the only clean way to compare - same roof, same size, different prices. Getting quotes is free and does not commit you to anything; prices come from the installers, never from this site.
This guide is research, not advice: an independent summary of published prices and state rules. It is not an installer, lender or tax advisor - verify incentive eligibility with a licensed tax professional before relying on it.
Common questions
Does solar raise my property taxes?
It depends on the state - many exempt solar's added home value from property tax, others do not, and some exemptions have expiration dates. This guide's state page lists the verified rule and source for your state.
Is solar still worth it without the federal credit?
It depends mostly on your state's export rules and your daytime usage. Paybacks lengthened by roughly a third when the credit ended, but rising electricity rates and record-cheap hardware keep the math workable in states with decent export compensation - and marginal where exports pay avoided cost only.
Should I lease, get a PPA, or buy?
Buying keeps all savings and any incentives with you. Leases and PPAs put a company's equipment on your roof for 20-25 years, complicate a home sale, and in 2026 any tax benefits they advertise belong to the company under commercial rules - not to you. Read escalator clauses carefully.
What is net metering and why does it decide everything?
It is the rule for how your utility credits electricity you export. Full retail net metering credits exports at the same rate you pay - the grid works like a free battery. Net billing or avoided-cost rules pay far less per exported kWh, which lengthens payback and strengthens the case for a home battery.
Do I need a battery with my solar?
Not necessarily. Under full retail net metering, the grid effectively stores your surplus for free. Batteries earn their $12,000-16,000 price where export rates are low, outages are common, or time-of-use rates make evening self-consumption valuable.
Get solar quotes for Paterson
These platforms collect bids from licensed installers so you can compare against the same spec. Prices come from installers, not from this site.
Disclosure: this is an independent guide. If you request quotes through a link here, the platform may pay this site a referral fee. That fee never changes your quotes.
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