If you go solar in New Jersey, net metering decides how much the electricity you do not use yourself is worth. The short version: New Jersey credits it at the full retail rate. Here is how that works on your bill, month by month and at the end of the year.
What net metering is
Your solar panels produce the most power in the middle of the day, often more than your home is using. That extra electricity flows back to the grid through your meter. With net metering, your utility credits you for it at the same retail rate you pay for electricity, one kilowatt-hour for one kilowatt-hour.
All four New Jersey electric utilities offer full retail net metering: PSE&G, JCP&L, Atlantic City Electric and Rockland Electric.
How it shows up on your bill each month
- You use more than you produce: you pay for the difference.
- You produce more than you use: the surplus becomes a credit that rolls into the next month.
- Fixed charges still apply: your utility's monthly customer charge stays on the bill even in months when your credits cover all of your usage.
Summer credits cover winter bills
Because credits carry forward, the long sunny days of late spring and summer build up a bank of credits. Shorter days in winter draw that bank down. This is why a system sized to your full year of usage can leave you with low bills in winter, even though the panels produce less then.
What happens at the end of the year
Net metering runs on a 12-month cycle called the annualized period. At the end of it, any credits you have left are paid out at your utility's avoided-cost rate, which is roughly the wholesale price of electricity and well below what you pay at retail. Then the cycle starts over.
That payout rule is why sizing matters. The best value comes from a system that produces about what your home uses in a year, not far more. New Jersey utilities also review applications to confirm the system is sized to the home's usage.
Net metering vs. the SuSI payment
These are two different benefits, and you get both:
- Net metering credits your bill for the electricity you send to the grid.
- SuSI (also called ADI or SREC-II) pays you for every megawatt-hour your system generates, whether you use it or export it. The residential rate is $77 per MWh for systems registered on or after July 27, 2026, paid for 15 years.
See New Jersey solar incentives in 2026 for SuSI and the tax exemptions.
Is net metering changing?
The New Jersey Board of Public Utilities has held stakeholder sessions on possible net metering reforms, as many states have. As of November 2026, residential net metering in New Jersey still works as described here. We will update this guide if the rules change.
See what it means for your home
How much net metering saves you depends on your usage, your utility rate and how much your roof can produce. Run the Home Analyzer to see what your roof can support, or read our New Jersey solar overview.
Checked November 2026.