Net metering in New Jersey

What is net metering?

Net metering is the policy that allows people with solar to get a credit on their electric bill for the energy they produce from their system.

Learn the basics

Net metering in New Jersey

System capacity limit System must not exceed annual electric consumption on-site
Monthly excess generation credit rate Full retail
Annual excess generation credit rate Avoided cost
State-wide net metering cap 2.9 percent of state annual sales of electricity for prior year
Applicable utilities Investor owned utilities and electric suppliers, some municipal utilities, and electric cooperatives
Policies expanding net metering Aggregate net metering
Additional barriers N/A


New Jersey Administrative Code § 14:8-4.1 establishes the rules of net metering in New Jersey. Investor-owned utilities and energy suppliers are obligated to allow net metering for residential customers. There is no system size limit, however, the system must be sized so that energy generation does not exceed a customer’s annual electricity consumption. No hard cap has been set on aggregate residential solar capacity, but the Board of Public Utilities may choose to limit net metering to 2.9 percent of the total kWh sold by each electric provider.

Billing and compensation

Utility customers with net metered systems will be credited for each kilowatt produced by their system and each month will be billed for the number of kilowatt hours they used, minus the number of kilowatt hours generated. If your generation exceeds your usage for a given month, you will receive a credit for each excess kilowatt hour, to be applied in later months when you generate less electricity than you consume. At the end of each 12-month billing period, you will be compensated for any excess credits at the avoided cost rate for the utility.

Aggregate net metering

New Jersey allows for the aggregation of meters for solar facilities only for public entities such as state and local governments, schools, and local agencies.

Take action

Having trouble interconnecting your system?

If you’re having trouble with net metering or getting your system interconnected, post to the Solar United Neighbors of New Jersey listserv to get help.

File a complaint 

Our utilities exist to serve their customers. If you’re having a problem that isn’t being resolved quickly by your utility, file a complaint the New Jersey Board of Public Utilities.

New Jersey resources