If you've gotten a solar quote in New Jersey, the salesperson probably said the words "SREC income" at some point. Here's what that actually means in plain English — and how much money you'll really make.
What's an SREC?
An SREC is a Solar Renewable Energy Certificate. Think of it as a receipt the state gives you every time your panels produce 1,000 kWh of clean electricity.
The state requires every utility (PSE&G, JCP&L, ACE, etc.) to source a certain percentage of their power from renewables. To meet that quota, they buy SRECs from solar owners. That's where your check comes from.
What does an SREC pay in New Jersey today?
NJ now uses the SREC-II program (the successor to the original SREC market). SREC-IIs have a fixed price set by the state — about $85 each as of 2026. Unlike the old market, this price doesn't fluctuate, so you can plan your ROI confidently.
How many SRECs will my system make?
Roughly 1 SREC per kW of system size, per year. Examples:
- 5 kW system: ~5 SRECs/year × $85 = $425/year
- 8 kW system (typical): ~10 SRECs/year × $85 = $850/year
- 12 kW system: ~15 SRECs/year × $85 = $1,275/year
How long do you collect them?
15 years. Every system registered today earns SREC-II income for 15 straight years from the date your system is registered with the state. After that, you keep all the bill savings — but the SREC income stops.
How do I actually get paid?
Your installer (us) registers your system with the NJ Board of Public Utilities. Then a third-party SREC broker (like Sol Systems or Knollwood) sells your SRECs to utilities and mails you a check — typically monthly or quarterly direct deposit.
How does this stack with the federal tax credit?
SRECs and the 30% federal tax credit are fully stackable. You get both. SRECs are also stackable with sales tax exemption, property tax exemption, and net metering bill savings. New Jersey is one of the most lucrative states in the U.S. precisely because all five benefits combine.
What about Eastern PA?
Pennsylvania has a separate SREC program (different rules, different prices — typically $35-45 per SREC). If you're in Bucks County or the Lehigh Valley, your Azimuth quote will use PA-specific values.
Bottom line
SRECs are one of the strongest reasons NJ homeowners go solar. They turn a modest 7-year payback into a 4-5 year payback for many homes. Get a free estimate and we'll show you the exact SREC income for your roof.
Get a free solar estimate
Serving New Jersey & Eastern PA. Same-day estimates for most homes.
Get My Free Estimate →