New Jersey gives businesses two main ways to use solar power. You can subscribe to a community solar project located somewhere else in your utility territory and receive credits on your electric bill, or you can own a solar system on your own roof, carport or land. Both are legitimate options. This guide explains how community solar works in New Jersey, how it compares with owning on-site solar, and which situations favor each.
How community solar works in New Jersey
Community solar lets electric customers subscribe to a share of a solar project that is not on their property. The project feeds power into the grid, and each subscriber receives credits on their utility bill for their share of the output, typically at a discount set by the subscription agreement.
The New Jersey Board of Public Utilities oversees the Community Solar Energy Program. For a business subscriber, the practical questions are whether the project serves your utility territory, whether it accepts your customer class and how the subscription agreement calculates credits and charges.
A few program features matter for businesses:
- Subscribers must be in the same utility service territory as the project.
- Projects reserve a large share of capacity for low and moderate income households, so the room available for commercial accounts varies by project.
- Terms such as the discount, contract length and exit rules are set by each project developer, not by the state.
LandAir does not sell community solar subscriptions. If you are considering one, review the subscription agreement directly with the provider.
How owning on-site solar works
With owned on-site solar, the system is installed on your roof, carport or land. Output can offset eligible electricity purchases. State production incentives may apply to a qualifying, registered project, subject to the program rules.
Eligible owners may also qualify for federal tax benefits. Applicable credits, timing and depreciation require a review of the current rules and the owner's tax position. See our New Jersey commercial solar incentives guide and consult your tax advisor.
Community solar vs on-site solar at a glance
| Community solar subscription | Owned on-site solar | |
|---|---|---|
| Upfront investment | Usually none | Paid in cash or through a commercial bank loan |
| Where the panels are | Off site, elsewhere in your utility territory | On your roof, carport or land |
| How you benefit | Bill credits at the discount in your agreement | Offset of eligible electricity purchases; potential production incentives if qualified |
| Tax benefits | Belong to the project owner | Belong to you if you qualify |
| Asset ownership | No asset on your books | You own the system |
| Roof or site needed | No | Yes |
| Availability | Depends on open capacity for commercial subscribers | Depends on your roof, site and interconnection |
When community solar fits
Community solar can be a good match when on-site solar is not practical. Typical examples include:
- Businesses that lease their space and cannot install on the roof.
- Buildings with small, shaded or heavily equipped roofs and no parking or land for a carport or ground array.
- Organizations that want some solar benefit without an upfront investment or a tax position to use credits.
When to assess owned on-site solar
An owned system gives the building owner control over equipment and operating decisions. Its financial result depends on site suitability, installed cost, financing, utility charges, maintenance and any benefits the owner qualifies to receive. Compare these costs with the subscription's actual discount and exit terms.
Start with usable roof or parking area, ownership or lease rights, roof condition, electricity use and interconnection feasibility. There is no single roof size or bill amount that makes every project worthwhile. Our rooftop solar guide explains the site review.
See what on-site solar could do for your building
LandAir has designed and built commercial solar in New Jersey since 1996, with financing through conventional New Jersey commercial bank loans so your business owns the system. If you own your building, the clearest way to compare options is to see what an on-site system would produce and save.
Share twelve months of electric bills and your address to request a commercial solar assessment, and you will have real numbers to weigh against any community solar offer.
Frequently asked questions
Can businesses join community solar in NJ?
Yes, commercial customers can subscribe in many cases. Projects reserve a large share of capacity for low and moderate income households, so availability for business accounts depends on the individual project.
Do I need my own roof for community solar?
No. Community solar projects are located elsewhere in your utility territory, and you receive bill credits for your share of the output.
Who gets the tax credits with community solar?
The project owner claims the tax benefits. With an owned on-site system, your business can claim the credits and depreciation it qualifies for.
Is on-site solar better than community solar?
It depends on your property. Compare site feasibility, investment, contract terms and expected net cost. Community solar may suit businesses without installation rights or usable space; on-site ownership gives you control of an asset and its operating obligations.
Check which utility charges remain
Community solar credits do not necessarily offset every charge on a commercial account. Fixed, customer and demand charges may remain. Ask the provider and your utility to show a sample bill for your rate class, including subscription charges and the credit calculation.
