New Jersey is one of the best states in the country to own solar, and a big reason is a program with an unfortunately clunky name: SREC-II. If the federal credit's expiration has you wondering whether NJ solar still pays, this is the program that answers it.

What an SREC-II actually is

SREC stands for Solar Renewable Energy Certificate. The "-II" means it's issued under New Jersey's current program, called SuSI (the Successor Solar Incentive). The idea is simple: the state pays you for generating clean power, on top of the money you save on your bill.

Here's the mechanism: for every 1,000 kWh (one megawatt-hour) your system produces, you earn one SREC-II certificate. A separate production meter tracks your output and reports it into the regional tracking system, your certificates are created automatically, and an aggregator handles selling them and getting you paid — typically quarterly.

The number that matters: a fixed rate, locked for 15 years

The old SREC market let prices swing wildly, which made payback hard to predict. SuSI fixed that. Today, residential systems earn a fixed, administratively set rate per SREC-II — recently in the range of about $76.50 per MWh for new 2026 registrations — and that rate is locked for 15 years from when your system is registered. It can't be cut on you mid-term. (The Board of Public Utilities reviews the rate periodically, so the exact figure for a new install should always be confirmed before you sign.)

A quick example. A typical system producing around 10,000–11,000 kWh a year earns roughly 10–11 SREC-IIs annually. At about $76.50 each, that's on the order of $800 a year, every year, for 15 years — on top of your bill savings. Your exact numbers depend on system size and sun.

SREC-II is separate from net metering — you get both

This trips people up constantly. SREC-II income and net metering are two different programs that run at the same time and don't cancel each other out:

One lowers your bill; the other writes you a check. You keep both.

Two things most articles skip

Why it matters more now

With the federal homeowner credit gone, SREC-II and net metering have become the backbone of NJ solar economics — and they're exactly why New Jersey still ranks among the strongest states for going solar in 2026. We handle the SuSI registration as part of every NJ install, so the income stream is set up correctly from day one.

Key takeaways

  • You earn one SREC-II for every 1,000 kWh (1 MWh) your system produces.
  • The rate is fixed and locked for 15 years from registration — recently around $76.50/MWh for new 2026 registrations (always confirm the current rate).
  • SREC-II is separate from net metering — you collect both at the same time.
  • Register promptly (the rate steps down over time) and remember SREC-II income is federally taxable.
This article is general information for New Jersey and South Carolina property owners, not tax, legal, or financial advice. Incentive programs, rates, and deadlines change — confirm current terms for your specific property and tax situation with NIKOLA Energy and a licensed tax professional before making decisions.