New Jersey Net Metering: How It Works and What It Means for Your Monthly Bill
New Jersey Net Metering: How It Works and What It Means for Your Monthly Bill
If you're a New Jersey homeowner curious about going solar, you’ve probably heard the term net metering. But what does it really mean—and more importantly, how can it help lower your energy bills?
In this blog, we’ll walk you through how New Jersey’s net metering program works, who qualifies, and how it can lead to savings.* Whether you're just starting your solar journey or looking to better understand your monthly utility statement, this blog will walk you through it step by step.
What Is Net Metering?
Net metering is a billing arrangement that allows homeowners with solar panels to receive credit for the extra electricity their system produces. During the day, your solar panels may generate more energy than your home needs. With net metering, that excess energy is sent to the grid, and you earn credits for it.
At night or on cloudy days, when your system isn’t producing as much energy, you can use those credits to offset your electricity usage. Think of it like rollover minutes, but for power.†
How New Jersey’s Net Metering Policy Works
New Jersey has one of the most robust net metering programs in the country, regulated by the New Jersey Board of Public Utilities (BPU). Here’s a simple breakdown:
- Excess electricity goes to the grid: When your panels produce more energy than you use, the excess is sent to your utility company. (New Jersey Official Site)
- Credits are applied to your bill: Under New Jersey’s net metering rules, most utilities—including PSE&G and JCP&L—issue a 1:1 credit for each kilowatt-hour (kWh) your solar system sends to the grid, up to your annual electricity usage. Excess credits roll over monthly and are applied to future bills. (PSE&G) (New Jersey’s Clean Energy Program) (EnergySage)
- Credits roll over month-to-month: If you produce more energy in sunny months (like summer), you can use those credits to cover higher usage in colder months. (The Solar Roof Guide)
- Annual true-up: Once a year, your utility may settle any unused credits, though compensation for excess may vary depending on your utility provider. (PSE&G)
You can read more about NJ’s net metering policy from the NJ Clean Energy Program.†
How Net Metering Affects Your Monthly Utility Bill
Let’s say your home generates 800 kWh of solar power in July but only uses 600 kWh. You’ll earn 200 kWh in credits. In December, if you use more energy than your system produces, those credits kick in to cover the difference, reducing your electric bill. (New Jersey Official Site)
Over time, this adds up to real savings, especially as utility rates continue to rise. Net metering makes solar power more practical and cost-effective for everyday families in New Jersey.
Who’s Eligible for Net Metering in New Jersey?
Net metering is available to:
- Residential homeowners with solar photovoltaic (PV) systems
- Systems sized to meet on-site electric needs (generally capped at 100% of your annual usage)
- Customers connected to the utility grid
If you lease your solar system through a provider like PosiGen, you’re still eligible. Our systems are designed to qualify under state guidelines. (New Jersey Official Site) (PSE&G)
The Benefits of Net Metering for NJ Homeowners
- Lower Monthly Bills
Your solar system can reduce what you owe to your utility company by generating clean energy and earning credits. - Greater Energy Independence
You gain more control over your energy costs—no more surprise spikes in your electricity bill. - Environmental Impact
You’re contributing to New Jersey’s clean energy goals and reducing your household’s carbon footprint. - Financial Flexibility
Even if you lease your system, net metering allows you to reap immediate benefits without upfront costs.‡
Important Updates to Know
In recent years, New Jersey has shifted from older solar credit programs (like SRECs) to the Successor Solar Incentive (SuSI) Program. While SuSI doesn’t directly affect net metering, it reflects the state’s long-term commitment to expanding solar access.
For updates on policies, visit the New Jersey Clean Energy Program. Also, read our New Jersey Electricity Rates Are Going Up: Here’s What It Could Mean for Your Energy Bills blog.
How PosiGen Helps You Maximize Your Solar Savings
At PosiGen, we specialize in helping New Jersey families harness solar energy—without the stress or guesswork.
We offer:
- No-money-down solar leasing
- Free energy efficiency audit to make your home even more cost-effective
- Local teams that handle permits, approvals, and paperwork
- Systems designed to maximize net metering benefits
We believe everyone deserves access to clean, affordable energy, no matter their income or ZIP code.
Want to learn more? Read our How Does Solar Energy Save Money? blog.
Ready to Take the Next Step?
New Jersey’s net metering policy makes solar a smart and affordable option for homeowners across the state. With the right company, going solar can reduce your electric bill, support a cleaner future, and bring peace of mind.
Curious how much you could save? Check out our solar calculator and schedule a free solar consultation today.
* Individual savings will vary based on your utility rate, energy consumption habits, solar system equipment installed on your property, tax incentives eligibility, weather, and other factors. Individual savings estimates are based on your solar energy production, your solar kWh rate, potential tax incentives, your utility kWh rate at the time of purchase and projected increase in the utility rate (based on historical data and national averages). Estimates do not take into consideration other changes in utility rates. Such changes could affect your overall estimated savings.
† Your utility or electric cooperative may not be required to offer net metering. Net-metering programs vary by state. Your utility bills may have fixed fees that cannot be zeroed out. Excess electricity may be compensated at lower than retail rates or solar households may be moved to a different rate class. Rates may differ based on the time of day. Net-metering programs are subject to change over the life of the system.
‡ There is no upfront cost for the design, permitting, and installation of your solar system. You are responsible for any pre-existing property repairs needed to prepare the home for installation, which PosiGen may offer to perform for a fee under a separate agreement.
