New Jersey Solar: SREC II to SuSI and What It Means for Your Production Income

New Jersey has one of the most distinctive solar economies in the country. For two decades, New Jersey homeowners didn't just save on bills with solar — they earned an ongoing income stream from the kilowatt-hours their panels produced, sold through the SREC (Solar Renewable Energy Certificate) market. As of 2026, the program is in transition: SREC I closed years ago, SREC II is closed to new entrants, and most new residential systems now earn under the SuSI (Successor Solar Incentive) program. The structure is different, the per-kWh rates are different — but the underlying principle is the same: every megawatt-hour your system actually produces is a tradable certificate worth real money.

That makes production verification financially weighty in New Jersey in a way that's unusual outside of MA, NJ, and a few other SREC-style states. Underperformance is not just lost bill savings — it's lost incentive income, every year, for the duration of your incentive term.

New Jersey Electricity Rates and Utilities

New Jersey has four major investor-owned utilities:

• PSE&G (Public Service Electric and Gas): Largest territory, covering much of central and northern New Jersey.
• JCP&L (Jersey Central Power & Light): Serves much of the New Jersey Shore region and parts of north-central NJ.
• Atlantic City Electric: Southern New Jersey.
• Rockland Electric Company: A small territory in the northern tip of the state.

Residential electricity rates in New Jersey are typically in the $0.18-$0.22/kWh range, varying by utility, supplier choice (NJ has retail choice for electricity supply), time of year, and rate class. That's notably above the national average but below California or Massachusetts.

Rate ranges are approximate, based on publicly available utility tariff filings and EIA residential data. Your specific rate depends on rate class, supplier, and time of year.

The SREC Lineage: SREC I, SREC II, TI, and SuSI

New Jersey's renewable portfolio standard requires utilities to procure a growing share of their electricity from solar, and Solar Renewable Energy Certificates (SRECs) are the mechanism. Each SREC represents 1 MWh (1,000 kWh) of solar production. Utilities buy SRECs from solar owners (typically through aggregators) to meet their compliance obligations. The market price of an SREC has varied dramatically over the years based on supply and demand.

SREC I (closed to new entrants)

The original program. Closed to new registrations long ago. Existing SREC I customers earn SRECs for a defined term (typically 15 years from system commissioning).

SREC II / Transition Incentive (TI)

The successor to SREC I, also now closed to new entrants. Existing SREC II / TI customers continue earning on their interconnected systems through the end of their qualification term.

Successor Solar Incentive (SuSI)

The current incentive structure for most new residential solar installations in New Jersey. Under SuSI, residential systems typically earn fixed per-MWh payments under the Administratively Determined Incentive (ADI) program for a 15-year term, rather than selling SRECs into a volatile market. This trades market upside for predictability.

SREC II, TI, and SuSI program details (rates, terms, eligibility) are administered by the New Jersey Board of Public Utilities (NJBPU). Specifics evolve; check NJBPU's website for current SuSI tariff levels and eligibility criteria.

For homeowners, the bottom line is the same across all four program lineages: you earn an ongoing payment that scales directly with production. Underproduction means under-earning — not just for one bill cycle, but for every year of your incentive term.

How Production Translates to SREC / SuSI Income

The mechanics are direct. Every 1,000 kWh your system produces generates 1 SREC (under SREC I, SREC II, TI) or qualifies for one MWh of payment (under SuSI ADI). Your meter measurements — the kWh totals reported to the program registry — are the source of truth.

A few practical consequences:

• Annual production matters financially every year of your term. A 10% production shortfall on an 8 kW system that should produce ~10,000 kWh/year is roughly 1 fewer SREC / MWh-payment per year. At even modest rates, that compounds to thousands of dollars over a 15-year term.
• Meter accuracy matters. If your revenue-grade production meter is reporting low, you're under-earning every reporting period. Cross-checking with an independent monitoring source helps catch meter drift early.
• Reporting timeliness matters. SREC / SuSI reporting cadence and the way production data flows from your system to the registry to your aggregator (if you're SREC) can introduce delays and occasional discrepancies. Periodic reconciliation is worth doing.
• The volatility profile differs by program. SREC customers face price volatility — the same MWh can be worth very different dollar amounts in different years. SuSI customers have rate certainty but no upside. Production certainty matters in both cases.

Net Metering in New Jersey

New Jersey has long maintained relatively favorable net metering, with residential systems generally compensated for exported energy at approximately the retail rate (with various nuances around generation vs. delivery components and reconciliation). Net metering credits stack with SREC / SuSI income — you can earn both on the same kilowatt-hours.

This dual-stream structure is part of what makes underperformance financially weighty in New Jersey. A lost kilowatt-hour costs you the bill savings and the incentive income.

What Underperformance Costs in New Jersey

The combined economics are easy to underestimate. Consider a 10 kW system in PSE&G territory that should produce ~12,500 kWh/year:

• A 10% production shortfall is ~1,250 kWh/year.
• At a $0.20/kWh retail rate, that's roughly $250/year in lost bill savings.
• At a hypothetical SuSI rate, that's also lost incentive income on the same kWh (the precise per-kWh value depends on your specific tariff and program).
• Compounded over a 15-year program term, the combined dollar impact is substantial — thousands of dollars.

SuSI per-MWh payment rates depend on system class, applicable adders, and the tariff in effect at registration. Check your specific SuSI award documentation.

Documentation Homeowners Should Keep

New Jersey's program-heavy structure means good documentation matters more here than in pure net-metering states. The records that protect you:

1. Your interconnection paperwork. Includes your system capacity, commissioning date, and program qualification details.
2. Your SREC / SuSI award letter. Specifies the program you're enrolled in, your term, your applicable per-MWh rate (for SuSI) or registration in the SREC market.
3. Your aggregator agreement (if you sell SRECs through an aggregator). Specifies the commission, term, and any minimum prices.
4. Production records. Periodic exports of your inverter or revenue-grade meter readings, archived independently of the installer's monitoring portal.
5. Installer contract including any production guarantee. Many NJ contracts include performance guarantees with specific reconciliation timing.
6. Weather-normalized production analysis. If you ever need to challenge an installer or escalate a complaint, the "your weather was bad this year" defense is the standard pushback. A weather-normalized analysis preempts it.

How to Verify Your New Jersey Solar System Is Performing

1. Compare actual production to weather-adjusted expected output. Year-over-year comparisons in New Jersey are noisy — coastal weather variability, Nor'easter snow loss, and inter-year cloud-cover differences are all real.
2. Cross-check your SREC / SuSI production reporting. The kWh totals reported to the program registry should match what your inverter and meter say independently. Discrepancies are recoverable but only if you catch them.
3. Track your production guarantee status. If your contract includes one, the reconciliation window is calendar-bound; missing it can waive the claim.
4. Confirm aggregator settlement timing. If you sell SRECs through an aggregator, periodic reconciliation against your own production records prevents quietly bad outcomes.

How OwlWatt Helps New Jersey Solar Owners

New Jersey's dual-stream economics — bill savings plus SREC / SuSI income — make independent production verification more financially weighty than in pure net-metering states. OwlWatt provides:

• Physics-based performance verification using NREL-validated irradiance modeling calibrated to your specific New Jersey location and system specifications — accounting for coastal weather variability and seasonal sun angle
• Production guarantee tracking against your contract terms, with alerts before reconciliation deadlines
• Dollar-denominated underperformance alerts that combine your retail rate and your SREC / SuSI per-MWh value, so you see the full financial impact of a shortfall
• Independent records archived outside your installer's monitoring portal — useful if you ever need to challenge an installer or document a claim