SRECs have been around in New Jersey for over 20 years serving as one of the longest and most successful solar incentive programs of all time. Aided by the State’s Renewable Energy Portfolio standard (RPS) that requires 50% of New Jersey’s electrical generation to come from renewable sources by 2030.
New Jersey is able to meet the state’s aggressive solar requirements with SRECs (Solar Renewable Energy Certificates). The Board of Public Utilities (BPU) mandates that SRECs must be bought by electrical suppliers in the state in order to meet the state’s requirements and avoid paying the Solar Alternative Compliance Payment (SACP) which sits at $208 per MW in 2025. In other words, to avoid paying a fine, the utility companies buy SRECS from solar producers which could be from utility scale production or from a homeowner with several rooftop panels on their home.
An SREC is a representative of renewable energy production which can benefit both homeowners and business owners alike in New Jersey. Every time a solar electric system generates 1,000 kWh (1 MWh) of electricity, an SREC is generated and can be sold for cash. The program has evolved over the years from variable market-rate prices to fixed prices, but overall, the big picture has remained the same:
For every 1,000 kilowatt-hours (1 MWh) of electricity your solar system produces, you earn one SREC, which can then be sold for cash.
How Do You Register for SRECS?
When you go solar with a local installer like Public Service Solar, paperwork is submitted along with your permits and utility approvals to register your system for NJ’s SREC program. The installer will complete the application process which requires documentation before and after the project is completed. Here is how it works:
- SRP Application: Your installer submits a Solar Registration Program (SRP) application to NJCEP before installing your system. This application will outline the site location, the installer, the estimated solar production, and the equipment being installed.
- System Install & Inspections: Once your system is installed and passes final inspections, your installer submits final paperwork for the SREC program after the net meter is installed on the home. This paperwork cannot be submitted until the upgraded digital meter is installed. In this piece, any changes made to the system between the SRP application and final approval are noted such as changes in system size, equipment, roof planes etc. in what is known as the “As Built” paperwork.
- You Are Issued a SUN Number: This is your unique system ID used for SREC tracking. Once a SUN Number is issued, you are on your way to start selling SRECS.
- Your PJM-GATS Account Is Created: This is where your monthly solar production is reported and your SRECs are issued.
How Are SRECS Bought and Sold?
Homeowners register an account with PJM Gats which stands for Generation Attribute Tracking System where they can enter a meter reading. The entered number is at the discretion of the homeowner but often will require supporting documentation like a picture of the meter reading. Some systems are automated via third-party reporting (like Enphase), but if not, you’ll manually upload a photo of your solar meter showing total kWh.
The meter reading can be entered once per month with the 15th of every month serving as the final date for entering a reading. If several months have passed since the last reading was entered, the system will extrapolate the generation to an “adjusted generation” and spread it out over the missing months ensuring no generation is left unaccounted for.
Alternatively, you can sell through a brokerage, who for a small fee, will sell SRECs on your behalf taking any trouble away from the homeowner. Public Service Solar will set up an SRECtrade.com account on the behalf of our customers to get them down the road of selling their SRECS as quickly as possible.
Public Service Solar offers guidance on these options ensuring our customers are equipped to collect solar payments from their solar energy system.
What Is the Current SREC Program in NJ?
As of 2025, New Jersey is in the SREC-II Program, part of the Successor Solar Incentive (SuSI) Program run by the New Jersey Clean Energy Program (NJCEP).
Unlike the original open market, SREC-II offers a fixed price of $85 per SREC for 15 years for residential systems under 5 MW. This makes your solar investment more predictable and eliminates the risk of market price swings that happened under the old system.
SuSI Capacity in Energy Year 2026 (Starting June 1, 2025)
Each Energy Year (running June 1–May 31) comes with a new allocation of SuSI capacity. For 2026, the following blocks are open or expected to open:
| Market Segment | FY2026 Capacity (Expected or Confirmed) | Status |
| Residential & Small Commercial (<5 MW) | Expected 450 MW (like prior years) | OPEN NOW |
| Remote Net Metering (RNM) | Confirmed 50 MW | OPEN NOW |
| Grid-Supply / Large Projects (CSI) | ~300 MW (via competitive bids) | Solicitation Open |
This capacity may sound like a lot, but it does tend to go quick. The last reports from energy year 2025 which ended May 31, 2025 showed just 28 MW remaining out of the potential full capacity of 450 MW.
Tax Credit Urgency in 2025
2025 is expected to be a blockbuster year for installations in New Jersey fueled by concerns regarding the premature elimination of the 30% Solar Tax Credit (ITC). Specifically the House Bill H.R.1 which would eliminate Internal Revenue Service (IRS) Code 25D, more commonly known as the 30% Solar Tax Credit (ITC). If the bill passes the Senate in their vote in July 2025, it will effectively eliminate the tax credit. Installers are expecting a mad dash of installations from homeowners and business owners who do not want to wait any longer and forgo their tax credit worth 30% of the solar and/or battery project’s cost.
The project must be completed in 2025, and with the timeline to install and receive approvals, homeowners are moving quickly to get their place in line and claim their 30% tax credit. Ready to get started with solar in 2025, contact Public Service Solar today for more information.
