If you’re a New Jersey homeowner or business considering going solar, there’s a lucrative incentive program you’ll want to know about: SREC-II. Part of the state’s SuSI (Successor Solar Incentive) program. This incentive is administered by The New Jersey Clean Energy Program (NJCEP) and is the latest adaptation in New Jersey’s SREC program which has helped thousands go solar since 2004.
This article will guide you through everything you need to know about how the SREC-II program works and how to earn and sell your credits.
What is the SREC-II Program?
SREC-II (Solar Renewable Energy Certificate II) often just referred to as “SRECS” is New Jersey’s fixed-incentive solar program. It pays homeowners and businesses $85 for every 1,000 kilowatt-hours (1 MWh) a solar energy system produces in New Jersey for 15 years.
- Each 1,000 kWh (1 MWh) = 1 SREC-II
- Each SREC-II is worth $85
- SRECS prices are fixed for 15 years from the date of interconnection.
- SRECS apply to residential and commercial net-metered systems under 5 megawatts (MW)
Unlike earlier versions of the SREC program, with SREC-II the incentive price is fixed for 15-years, so you don’t have to worry about market fluctuations and can predict the cashflow from your solar investment.
Previous NJ SREC Programs
Since 2004, New Jersey has been leading the way with SREC programs designed to promote solar growth in the state in order to meet the demands of NJ’s Renewable Energy Portfolio Standard (RPS).
Original SREC Program (2004–2020)
- SRECs were sold on an open market to utilities to meet Renewable Portfolio Standards (RPS).
- Values fluctuated widely based on supply and demand (sometimes $80–$300 per SREC).
- Jump started the market by creating solar income but also came with some cashflow uncertainty.
Transition Renewable Energy Certificate (TREC) Program (2020–2021)
- This program bridged the gap between SREC-I and SREC-II .
- The first introduction of fixed payments.
- Residential solar installations received $91.20/SREC for 15 years.
- Commercial solar installations received $152/SREC for 15 years.
How to Sell SRECs
Once your solar energy system in NJ has received its approval to operate, you can start generating and selling SRECs. Here’s how the process works:
1. Register The System with GATS
GATS (Generation Attribute Tracking System) is where your solar production is officially tracked. It is a web portal where solar production can be easily logged as often as once per month. Selling SRECs on the GATS system is not difficult, but registering the system can be more complicated. This is why Public Service Solar handles the registration for our customers — providing peace of mind and easy payments.
2. Monitor Your Solar Production
Each time your system produces 1,000 kWh, a new SREC-II can be credited to your GATS account. A solar SREC meter will be installed during the installation which has the cumulative production number on a digital display. Some monitoring softwares, like Envoy from Enphase for example, can be used in lieu of an SREC meter so long as it is equipped with a CT Ring (Current Transformer) — effectively making the reading “revenue grade.”
3. Sell Your SRECs
You have two main options when it comes to selling your SRECs: doing it yourself or using an aggregator (bulk seller of SRECs) or broker (intermediary which facilitates SREC payments):
A. Using an Aggregator or Broker
For homeowners, there are several reputable brokerages which can sell your SRECs for you in NJ like SRECTrade, Knollwood Energy, and Sol Systems. These companies will monitor your production, sell SRECs in bulk, and deposit earnings directly into your bank account minus a commission fee typically between 5-10%.
B. Sell SRECS Yourself on GATS
SRECs can be sold on the GATS portal fairly easily by entering in your meter reading. The monthly production cycle concludes on the 16th of each month so for the best value it is typically recommended that you enter your reading as close to that date as possible. For example, entering your reading on the 17th would mean the SREC sale and payment is not processed under the 16th of the following month.
4. Collect Payments
If you use an aggregator, payments are typically issued quarterly via ACH direct deposit or mailed check. If you sell on the GATs portal, payments are typically made a month after the end of the previous month’s production cycle.
How Much Can You Earn with SRECs?
Here’s a breakdown of potential earnings for different system sizes:
| System Size (kW) | Annual Production (kWh) | SRECs Earned/Year | Annual Income (@ $85/SREC) | 15-Year Income ($85/SREC) |
| 6 kW | 8,000 kWh | 8 | $680 | $10,200 |
| 10 kW | 13,000 kWh | 13 | $1,105 | $16,575 |
| 20 kW | 26,000 kWh | 26 | $2,210 | $33,150 |
How Long Will SREC-II Be Around?
Your individual system’s 15-year payout window starts when you are interconnected to the grid. The program itself is block-based with each year opening up limited “blocks” of SRECs with each registered project reducing the overall remaining total. In 2024, NJ opened a 200 MW residential block. SREC blocks in NJ will fill up, and once they are full, applications can be closed to new applicants and subsequent blocks may have adjusted rates. The good news is once you’re locked in, your rate is guaranteed for 15 years, even if the program changes later. So it is best to act sooner than later to reserve the SREC-II incentive for your home or business.
Can Commercial Properties Receive SRECs?
Yes, businesses that invest in solar projects under 5 MW in NJ can collect SRECs. Net metered rooftop and carport systems receive $85/SREC-II while ground mounted projects can receive incentive prices that vary based on the specific project details. Community solar projects can receive $90/SREC-II.
What About Larger Commercial Projects (5+ MW)?
Larger commercial solar projects can still receive incentives however they are awarded through a bidding process which falls under the CSI (Competitive Solar Incentive) portion of the SuSI program.
Whether you’re a small business owner or large-scale property owner, solar in NJ can deliver serious long-term savings and income.
How to Apply for the SREC-II Program
With Public Service Solar, we handle the entire SREC-II registration process from start to finish.
- We first submit the SREC registration before the installation. This document will include the equipment we will use along with their quantity and production estimates.
- Next, we receive the “conditional approval” on your behalf and start the installation.
- After the solar installation is complete, we submit post-construction documents or “As Builts” for the final certification.
- You are assigned a GATS account and NJ Certification number.
Public Service Solar will register your account and help you to start selling your SRECS!
Public Service Solar takes care of the paperwork, registrations, and connection to GATS. We try to make it as simple as possible so you can just sit back and enjoy the savings.
What Our NJ Customers Are Saying About SRECs
Our NJ customers love the fact that they’re not just saving money on their electric bills, they’re earning money too.
“I didn’t realize I’d be getting actual checks from going solar. My system covers almost all my usage, and the SREC payments are a nice bonus.”
“Public Service Solar helped me set up my GATS account and got me connected with Knollwood. Now I get a direct deposit every few months—super easy.”
Should You Go Solar in NJ in 2025?
If you’re thinking about going solar in New Jersey, 2025 is a great time to do it.
With high electricity prices already and with a 20% rate hike scheduled for June 2025, an excellent 15-year SREC-II program, and the 30% tax credit (ITC), solar in NJ is as good as ever.
At Public Service Solar, we’ll walk you through the entire solar process to make things simple and easy. We’ll discuss with you a custom solar plan with easy financing options.
Let your roof earn you income and don’t leave SREC money on the table.
Ready to get started and start earning SRECS? Contact us today for a free quote and personalized solar savings report.
