New Jersey

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New Jersey has long been a leader in the solar REC market since launching its first program in 2004. Over time, the state has revised its SREC program and renewable energy requirements several times, resulting in an evolving set of rules for participants.

A solar system’s eligibility and compensation depend on when it was interconnected and registered for SREC generation:

Legacy SRECs (2004 to April 2020): Systems registered during this period are eligible to generate Legacy SRECs for a period of 10 to 15 years, depending on their original registration date. Although the Legacy SREC program is closed to new participants, existing systems continue to generate SRECs that can be sold in the marketplace. These SRECs are sold at a market rate and are bought by utilities to meet their solar REC requirements, historically at a very high value. New Jersey has now effectively capped the SREC price to manage utility costs; the limit is $208 in 2026 and decreases by $10 each year. Legacy SRECs may be used for up to five years after creation.
Transition RECs (T-RECs) (May 2020 - August 2021): Systems interconnected and approved in this time period qualified for the Transitional REC program and receive a fixed rate for their T-RECs for a 15 year period. Rates vary by system type - for example, residential net metered systems earn $91 per T-REC.
SREC-II: Successor Solar Incentive Program (SuSI) (September 2021 - current): Under SuSI, new systems generate RECs through the Administratively Determined Incentive (ADI) program. The ADI uses a block-based structure that provides price certainty. Each block has a fixed REC value, and once the block is fully subscribed, it closes and is replaced by a lower-priced block. In 2026 the active block provides $85 per REC for 15 years.

Regardless of the SREC program, once the initial incentive period of 15 years ends, the solar system will be eligible to generate Class-I RECs under New Jersey’s broader Renewable Portfolio Standard (which is not limited to solar). The Class-I RECs market has a larger credit supply relative to demand, and with a lower ACP, resulting in a significantly lower value compared to SRECs.

Additionally, New Jersey-sited solar systems are eligible to participate in the Pennsylvania Tier-I REC market and the Virginia REC Market.

Markets for NJ Systems

NJ SREC-II, NJ Class-I REC, PA Tier-I, and VA RECs

Tracking Registry

GATS

Energy Year

June - May

Eligible System Locations for NJ SREC-II

solar PV systems in NJ

Eligible System Locations for NJ Class-I REC

renewable energy systems in New Jersey

Market Prices

NJ

Latest Bid Price:

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Solar Requirement

SRECS are required to be 5.1% of the state's electricity usage in 2023 and declining thereafter to 1.1% by 2033.

Class I RECs are required to make up an increasing amount of the electricity supply, reaching 50% by 2030.

Meter Readings

Effective November 30, 2012, all solar facilities are required to have a revenue grade meter and must report meter readings in order to produce SRECs.

Class-I RECs must be generated in the GATS registry.

Eligibility Period

Solar facilities are certified in the NJ SREC market with 15 years of eligibility, beginning with their date of interconnection.

SACP

The Solar Alternative Compliance Payment (SACP) is the penalty price that electricity suppliers must pay per SREC if they fail to file the required number of SRECs by the end of each compliance period. The SACP is responsible for strong SREC pricing in New Jersey, but does gradually decline (see table below).

The Class-I REC ACP is established at $50, and does not change over time.

SREC Useful Life

SRECs from energy generated during or after July 2012 are eligible for 5 years; that is, they can be used for compliance obligations in the energy year in which they are generated and the following 4 reporting years.

Market Requirements

NJ SREC market requirements as currently set by state legislation:

Energy Year	% Solar Requirement	SACP	Class-I REC % Requirement	Class-I REC ACP
2017	3.00%	$315	10.485%	$50
2018	3.20%	$308	12.325%	$50
2019	4.30%	$268	14.175%	$50
2020	4.90%	$258	16.029%	$50
2021	5.10%	$248	21%	$50
2022	5.10%	$238	21%	$50
2023	5.10%	$228	21%	$50
2024	4.90%	$218	21%	$50
2025	4.80%	$208	35%	$50
2026	4.50%	$198	35%	$50
2027	4.35%	$188	35%	$50
2028	3.74%	$178	35%	$50
2029	3.07%	$168	35%	$50
2030	2.21%	$158	50%	$50
2031	1.58%	$148	50%	$50
2032	1.40%	$138	50%	$50
2033	1.10%	$128	50%	$50

Market Resources

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