New Jersey Solar Rebates and Incentives

NJ Net Metering Rules

Program Type Net Metering
Technologies Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Anaerobic Digestion, Tidal Energy, Wave Energy, Fuel Cells using Renewable Fuels
Amount No limit specified
Who It Applies To Commercial, Industrial, Residential customers of investor owned utilities
Required Documentation Must have an interconnection agreement with the electric utility
Official Web Site

NJ’s net metering law enables customers to get full retail credit on their utility bill for each kilowatt hour of electricity produced in excess of their demand.

The utility tracks the difference between usage and production for each customer. For each customer who produces electricity, the kilowatts produced in excess of demand are credited to the customer’s account. The customer can draw on their credits to pay for usage during periods when their demand exceeds their production. At year-end, any balance in the customer account is paid to the customer at the wholesale price for electricity.

An interconnection agreement governs the relationship between the electric customers and their utility. The agreement specifies the technical, safety and testing requirements needed to connect the customer’s system to the electric grid.

To qualify, electric systems cannot produce more than 2 megawatts and cannot exceed the customer’s annual electric demands.

As of July, 2012, public entities such as state and local governments and school districts are required to aggregate their solar facilities. And the solar facilities have to be located on land the entity owns and the systems have to be owned and operated by a signle entity.

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