New Jersey solar export compensation
What New Jersey pays for exported rooftop solar power, with the source and the date each figure was checked.
Record verified 2026-09-16 · 18 of 17 fields sourced
What does your utility pay?
No single rate — formula based
Retail-rate net metering; annual surplus paid at avoided cost of wholesale power
PSE&G · New Jersey
PSE&G describes monthly one-for-one net consumption, a 12-month contract year, anniversary true-up, and PJM-based market-price valuation excluding delivery and system charges for residual credits.
Source: nj.pseg.com
Full PSE&G detail →New Jersey uses retail-rate net metering for Class I renewable-energy systems: each exported kWh offsets a kWh of imports at the applicable retail billing rate during the customer’s 12-month annualized period. Any credits left at the annual true-up are paid at the supplier or basic-generation-service provider’s avoided cost of wholesale power, rather than carried indefinitely. The regime applies through the four investor-owned electric distribution companies—PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric; municipal utilities and cooperatives are outside NJBPU jurisdiction.
Program details
| Compensation mechanism | Retail-rate net metering for Class I renewable-energy systems, with annual surplus compensation at avoided cost of wholesale power; applies to new residential, commercial, and public-entity customer-generators served by participating EDCs. |
|---|---|
| Export rate | One-for-one retail-rate credit against delivered electricity during the annualized period; net excess remaining at true-up is paid at the supplier/BGS provider's avoided cost of wholesale power, which varies with wholesale market prices and customer/voltage category. |
| Rate effective | Retail-rate netting applies during each monthly billing period within the customer-selected 12-month annualized period; the avoided-cost cash-out applies at the end of that annualized period. |
| Credit rollover | Unused kWh credits carry forward from month to month within the 12-month annualized period at their kWh value and offset later delivered kWh; they are not carried forward past the annual true-up as kWh credits. |
| Credit expiration | Banked kWh credits are cleared at the end of each annualized period and converted to a monetary credit at avoided cost of wholesale power on the following bill. |
| Annual true-up | The customer selects a 12-month annualized period; absent a selection, it begins on the first day of a monthly billing period designated by the utility, commonly the month net metering is activated. The anniversary month is the annual true-up month. |
| Residential system cap | No fixed statewide kW cap identified; the facility must be sized not to exceed the customer's electricity supplied over the annualized period, subject to the applicable EDC interconnection review. |
| Commercial system cap | No fixed statewide kW cap identified; the facility must be sized not to exceed the customer's electricity supplied over the annualized period, subject to the applicable EDC interconnection review. |
| Aggregate program cap | The Clean Energy Act permits the Board to stop offering net metering to new customers when statewide net-metering generation exceeds 5.8% of the prior year's total annual kWh sales by each supplier/BGS provider; this is a threshold, not a fixed MW enrollment cap. |
| Program status | NJBPU Staff reported that the 5.8% threshold was exceeded during Energy Year 2024 (ended May 31, 2024), but the Board has not been identified as having terminated retail net metering for new customers; a successor-policy stakeholder proceeding is underway. |
| Regulator | New Jersey Board of Public Utilities (NJBPU), Trenton |
| Docket | QO24090723 — In the Matter of Net Metering for Class I Renewable Energy Systems |
| Governing rule | N.J.S.A. 48:3-87(e) and N.J.A.C. 14:8-4 (Net Metering for Class I Renewable Energy Systems); interconnection procedures are in N.J.A.C. 14:8-5. |
| Grandfathering | Existing net-metered customers are protected from a future NJBPU-authorized cessation because the Clean Energy Act permits stopping net metering only for customers who are not already net metered. The cited NJBPU materials establish no fixed grandfathering sunset or duration and QO24090723 remains a successor-policy stakeholder proceeding, not an adopted transition rule. |
| Interconnection application | Apply to the serving EDC through its interconnection process (now standardized through the Common Interconnection Application Process rules); Level 1 is for certified inverter-based facilities up to 25 kW DC, Level 2 for certified facilities up to 2 MW DC that do not qualify for Level 1, and Level 3 for other facilities. The applicant submits the EDC application/agreement and required technical documents, obtains interconnection approval and local code approval, then receives authorization to operate and a bidirectional/net meter where required. |
| Interconnection timeline | Under the NJBPU interconnection rules, the EDC must notify the applicant within 3 business days whether a Level 1 or Level 2 application is complete; after completeness, Level 1 review determination is due within 10 business days and Level 2 determination within 15 business days. Level 3 timing is study-dependent; after approval, a required new revenue meter must be installed within 10 business days. |
| Pending change | NJBPU docket QO24090723 is an open stakeholder proceeding on a possible successor net-metering policy for new customers; the February 5, 2025 technical-conference notice says Staff is developing a shortlist of successor-policy options, but it does not announce an effective replacement date. Separately, the SuSI ADI portal is open to new registrations; the May 21, 2026 ADI order reduced the residential SREC-II incentive from $85/MWh to $77/MWh for registrations received on or after July 27, 2026, and opened EY2027 capacity allocations June 1, 2026. |
Rates by utility
State rules set the framework. Individual utilities often pay something different, and where they do the utility tariff governs.
| Public Service Electric & Gas (PSE&G) | Retail-rate net metering; annual surplus paid at avoided cost of wholesale power Current utility guidance read September 16, 2026; annualized period begins with net-meter activation unless changed once by customer PSE&G describes monthly one-for-one net consumption, a 12-month contract year, anniversary true-up, and PJM-based market-price valuation excluding delivery and system charges for residual credits. |
|---|---|
| Jersey Central Power & Light (JCP&L) | Retail-rate net metering; annual surplus paid at avoided cost of wholesale power Current utility guidance read September 16, 2026; annual true-up occurs on the account's net-metering anniversary JCP&L states that each received kWh offsets delivered energy one-for-one, excess is banked for the next billing cycle, and remaining banked kWh are paid out annually at the avoided cost of wholesale power. |
| Atlantic City Electric (ACE) | Retail-rate net energy metering; annual surplus paid at avoided cost of wholesale power Tariff PDF effective July 1, 2025; statewide NEM rules govern current credit treatment ACE's filed New Jersey tariff includes Rider NEM and its continuation sheets; credit treatment is governed by the NJBPU NEM rules and the statewide avoided-cost true-up provision. |
| Rockland Electric (RECO) | Retail-rate net metering; annual surplus paid at avoided cost of wholesale power Current New Jersey guidance read September 16, 2026; customer-selected 12-month annualized period RECO's New Jersey customer guidance states that remaining kWh credits are reconciled after the annualized period and paid at the BGS provider's avoided cost of wholesale power. |
Sources read for this record
Keep reading
- Every state we track
- How these figures are sourced and dated
- Arizona — Set per utility, not statewide. APS: $0.05554/kWh. TEP: $0.0513/kWh, w
- California — No single statewide export rate. Compensation is set by the CPUC Avoid
- Colorado — No single statewide dollar export rate. Under ordinary net metering, m
- Florida — No single statewide dollar-per-kWh export rate. Monthly net exports ar
- Hawaii — Hawaiian Electric Smart Renewable Energy Export rates for 2024-2026, i
- Illinois — No single statewide dollar-per-kWh rate. For new residential and small
- Massachusetts — No single statewide dollar-per-kWh rate. For ordinary qualifying solar
- New York — No single statewide $/kWh rate. The Value Stack is calculated from uti
- Texas — No statewide rate. Published municipal examples include Austin Energy