By Solar Expert
March 11, 2026
If you own a home in Edison, New Jersey, you have probably been weighing the numbers on rooftop solar -- especially now that the federal landscape has shifted. Edison sits in Middlesex County within PSE&G territory, where electric rates are high enough that a properly sized solar system can dramatically cut your monthly bill. The question is whether the math still works in 2026, and the short answer is yes -- but the details matter.
As of March 11, 2026: The information in this article reflects current NJ solar incentive programs, PSE&G net metering rules, and the federal tax credit repeal status as of this date.
Official sources (last checked: March 11, 2026):
A typical 7-10 kW residential solar system in Edison, NJ costs roughly $20,000 to $30,000 before state incentives in 2026. That range reflects the full installed price -- panels, inverters, racking, wiring, permitting, and labor. Because the federal residential tax credit no longer exists, this is closer to your actual out-of-pocket cost than it would have been in prior years.
Several factors push your price toward the higher or lower end of that range. System size is the biggest variable -- a home using more electricity needs more panels. Panel type matters too, though monocrystalline panels are now the industry standard for residential installations. Your inverter choice (a single string inverter versus individual microinverters on each panel) affects both cost and performance, particularly on roofs with partial shading.
Roof condition adds cost if your installer identifies structural issues, worn shingles, or complex angles that require additional racking. Edison Township in Middlesex County requires a local building and electrical permit for each solar installation, which adds a modest permitting fee. PSE&G also has an interconnection application process that your installer typically handles on your behalf.
Installers often quote a price per watt to make systems of different sizes easier to compare. If you see a quote stated as a per-watt figure, multiply it by your system size in watts to get the total. Be sure to confirm whether the quote includes permitting, interconnection, and monitoring -- some installers bundle these while others list them separately.
Claim: Edison homeowners should get at least three quotes from licensed NJ solar installers because installed pricing varies significantly based on equipment, roof layout, and installer overhead.
Evidence: NJ requires solar installers to hold an Electrical Contractor license, and Edison (Middlesex County) requires a local electrical permit for each installation. Because each installer sources different panel and inverter brands and each roof has unique structural and shading conditions, quoted prices for the same home routinely differ. Three quotes give homeowners a reliable price range and help identify outlier bids.
New Jersey still offers meaningful state-level solar incentives in 2026, even though the federal residential tax credit is gone. The three main benefits for Edison homeowners are the Successor Solar Incentive (SuSI) program, sales and property tax exemptions, and PSE&G net metering credits.
SuSI is New Jersey's current production-based solar incentive, replacing the older SREC and Transition Incentive programs. It pays a fixed per-kWh incentive for 15 years of solar generation. Residential net-metered systems connected to NJ utilities, including PSE&G in Edison, are eligible. The program is administered by the NJ Board of Public Utilities through the NJ Clean Energy Program.
New Jersey exempts solar energy equipment from the state's 6.625% sales tax. This applies to the purchase of panels, inverters, racking, and related hardware. Separately, NJ law provides a property tax exemption for residential renewable energy systems -- your home's assessed value will not increase due to a solar installation, even though solar can boost market resale value.
PSE&G net metering lets Edison solar customers send excess electricity to the grid in exchange for bill credits. Those credits carry forward month to month and are settled at an annual true-up. During sunny summer months, your system may produce more than you use, building up credits that offset higher-usage winter months.
| Incentive | What It Covers | How It Works | Key Eligibility | Source |
|---|---|---|---|---|
| SuSI Program | Solar electricity production | Per-kWh payment over 15 years | NJ residential net-metered systems | NJ Clean Energy Program |
| NJ Sales Tax Exemption | Solar equipment purchases | Exempt from 6.625% state sales tax | All solar purchases in NJ | NJ Division of Taxation |
| NJ Property Tax Exemption | Assessed home value | Solar does not increase assessed value | Residential solar installations | NJ statute |
| PSE&G Net Metering | Excess solar sent to grid | Bill credits with annual true-up | PSE&G residential solar customers | NJBPU rules |
| Federal Residential Credit (Sec. 25D) | REPEALED (2025) | No longer available for homeowner-owned systems | N/A | IRS / Big Beautiful Bill |
Claim: The NJ Successor Solar Incentive (SuSI) program is the primary state incentive for new residential solar installations in 2026, replacing the older SREC and Transition Incentive programs.
Evidence: The NJBPU established SuSI as the successor to the SREC-II / Transition Incentive framework. SuSI provides a fixed per-kWh incentive for 15 years of solar generation. Eligibility and incentive levels are published through the NJ Clean Energy Program. The program is open to new residential net-metered systems connected to NJ utilities including PSE&G.
The federal Residential Clean Energy Credit (Section 25D) was repealed by the One Big Beautiful Bill Act in 2025. This eliminated the 30% federal tax credit that homeowners previously received for solar panels, battery storage, and other residential clean energy systems they owned. The repeal applies to homeowner-owned systems only.
For Edison homeowners who planned to buy a system outright, this means a higher net cost compared to prior years. A system that might have carried a federal credit worth several thousand dollars no longer qualifies for that offset. However, NJ's state-level incentives -- SuSI payments, the sales tax exemption, and the property tax exemption -- still apply and partially close the gap.
One important distinction: the federal Commercial Investment Tax Credit (ITC) still exists for commercially owned solar systems. This matters if you are considering a solar lease or power purchase agreement (PPA), because the leasing company owns the system and can claim the commercial ITC. That tax benefit often translates into a lower monthly lease rate for the homeowner.
Claim: Even without the federal residential credit, Edison homeowners who lease solar or enter a PPA may still benefit from the Commercial ITC indirectly, because the leasing company can claim the commercial credit and pass savings through as a lower lease rate.
Evidence: The federal Investment Tax Credit (ITC) under Section 48/48E still applies to commercially owned solar systems. When a homeowner signs a lease or PPA, the system is legally owned by a commercial entity, making it eligible for the commercial ITC. The tax benefit typically reduces the price the leasing company charges the homeowner. This is a key distinction from homeowner-owned systems, which lost their credit under the Section 25D repeal.
Many Edison homeowners can offset 80-100% of their electric usage with a properly sized solar system, reducing their monthly PSE&G payment to little more than the minimum grid connection charge. Your actual savings depend on your current electricity consumption, system size, roof orientation, and shading.
Start with your current annual electricity usage (shown on your PSE&G bill in kilowatt-hours). A solar installer will design a system sized to offset most or all of that usage. New Jersey averages roughly 4.5 to 5 peak sun hours per day, which determines how much each panel produces annually. A south-facing roof with minimal shade will generate the most electricity per panel.
As a framework: if your current monthly PSE&G bill is in the range of $150 to $250 and a solar system offsets 90% of your usage, your remaining monthly electric cost would drop to the grid connection fee plus a small residual usage charge. The SuSI production payments add further value on top of the bill savings.
Roof orientation is the single biggest variable after system size. South-facing roofs produce the most energy, while east- or west-facing roofs produce roughly 15-20% less. Shading from trees, neighboring structures, or dormers further reduces output. PSE&G rate structures, including delivery charges and supply rates, determine the dollar value of each kilowatt-hour you offset.
Seasonal variation also plays a role. Solar production peaks in summer and drops in winter, but PSE&G net metering credits carry forward month to month. This means surplus summer credits help cover the gap during shorter winter days. At the annual true-up, any remaining excess credits are settled according to PSE&G's net metering rules.
Claim: Edison homeowners cannot eliminate their PSE&G bill entirely because the utility charges a minimum monthly grid connection fee regardless of solar production.
Evidence: PSE&G net metering rules allow residential solar customers to receive bill credits for excess generation, but the utility still charges a basic service/customer charge -- a fixed monthly fee for grid access. This fee applies even if the solar system produces more electricity than the home uses. The annual true-up settles any remaining credit balance, but the monthly minimum charge persists year-round.
Buying outright maximizes long-term savings because you own the SuSI incentive payments and all electricity savings, but leasing or a PPA requires no upfront cost and may still capture the Commercial ITC benefit through the system owner. The best option depends on your financial situation and how long you plan to stay in the home.
A cash purchase delivers the highest return over the system's lifetime. You receive SuSI payments directly for 15 years, keep all electricity savings, and own an asset that adds market value to your home. The downside: a $20,000-$30,000 upfront outlay is significant, and without the former federal credit to offset it, the payback period is longer than it was before 2025.
A solar loan lets you spread the cost over 10-20 years while still owning the system and collecting SuSI payments. Your monthly loan payment may be partially or fully offset by your electric bill savings, depending on the interest rate and loan term. The trade-off is that interest costs reduce your net return compared to a cash purchase.
A solar lease or power purchase agreement requires no money down. A commercial provider installs and owns the system on your roof, charging you a fixed monthly payment (lease) or a per-kWh rate (PPA) that is typically lower than your current PSE&G rate. Because the leasing company owns the system, it can claim the federal Commercial ITC -- and that tax savings often results in a lower rate to the homeowner.
The downside: you do not receive SuSI incentive payments (the system owner keeps them) and you do not build equity in the system. If you sell your home, the lease or PPA transfers to the buyer, which can complicate the sale.
Claim: Homeowners who purchase their solar system outright collect the NJ SuSI incentive payments directly, while those who lease give up those payments to the system owner.
Evidence: Under the SuSI program, the incentive is paid to the system owner or designated recipient. When a homeowner buys the system, they are the owner and receive the per-kWh payments for 15 years. In a lease or PPA arrangement, the leasing company owns the system and typically retains the SuSI payments (using them to subsidize the lease rate). This is a meaningful financial difference over the 15-year incentive period, as documented by the NJ Clean Energy Program.
To go solar in Edison, follow six main steps: consultation and quote, system design, permitting, installation, inspection, and PSE&G interconnection. The entire process typically takes 2-4 months from signed contract to system activation.
Edison Township requires both a building permit and an electrical permit for rooftop solar installations. Processing times vary depending on the township's current workload. Homes in historic districts or with HOA restrictions may face additional review steps.
On the utility side, PSE&G's interconnection process includes an application review, possible system study (for larger systems), and meter replacement. The NJBPU issued a Request for Information in February 2026 on distributed energy resources and interconnection practices, signaling that the state is actively reviewing and potentially streamlining this process for future applicants.
Claim: Edison homeowners should budget 2-4 months from signed contract to system activation because local permitting and PSE&G interconnection each add processing time beyond the physical installation.
Evidence: The physical installation of residential rooftop solar typically takes 1-3 days. However, the overall timeline includes Edison Township building permit review, electrical inspection scheduling, and PSE&G's interconnection application and net meter installation. Each step has its own processing queue. The NJBPU's February 2026 RFI on distributed energy resources and interconnection acknowledges that interconnection timelines are an area of active regulatory review.
No. The federal Residential Clean Energy Credit (Section 25D) was repealed by the Big Beautiful Bill in 2025. Homeowners who own their solar systems no longer qualify for a federal tax credit. However, the Commercial ITC still applies to leased systems and PPAs, because the system is owned by a commercial entity.
SuSI is New Jersey's current solar incentive program, replacing the older SREC program. It pays a fixed per-kWh incentive for 15 years of solar generation. Edison homes connected to PSE&G are eligible as long as the system is net-metered and registered through the NJ Clean Energy Program.
The physical installation takes 1-3 days, but the full process from signed contract to system activation typically takes 2-4 months. This includes Edison Township permitting, electrical inspections, and PSE&G interconnection approval.
No. New Jersey law exempts residential solar energy systems from local property tax increases. Your home's assessed value will not go up because of a solar installation, even though solar can increase your home's market value to potential buyers.
Buying maximizes long-term savings because you own the SuSI incentive payments and all electricity savings. Leasing requires no upfront cost and the leasing company may benefit from the Commercial ITC (lowering your lease rate), but you give up the SuSI payments and system equity. The right choice depends on your budget and how long you plan to stay in the home.
PSE&G credits your account for excess solar electricity sent to the grid. Credits carry forward month to month and are settled at an annual true-up. You still pay a minimum monthly grid connection fee even if your solar covers all your usage.
Yes. The SuSI production incentive, the NJ solar sales tax exemption, and the property tax exemption are separate programs and can all apply to the same Edison residential solar installation. There is no conflict between these benefits.
Solar is still a strong financial move for Edison homeowners in 2026. Even without the federal residential tax credit, NJ's state incentives -- the SuSI program, sales tax exemption, and property tax exemption -- combined with PSE&G net metering and high local electric rates make rooftop solar a practical investment. The payback math works, especially for homes with good south-facing roof exposure and electric bills above $150 per month.
Powerlutions is a licensed New Jersey solar installer serving Edison and the greater Middlesex County area. We handle every step from system design through Edison Township permitting to PSE&G interconnection. Contact us for a free, no-obligation solar quote tailored to your home and your PSE&G usage.
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