NJ SRECs, TRECs and SuSI Explained for Commercial Owners

If you search for SREC NJ, you will find advice written for three different programs. New Jersey moved from the legacy SREC market to the Transition Incentive (TREC) program in 2020, then to the Successor Solar Incentive (SuSI) program in 2021. A building that already has solar may still earn certificates under an older program, while a new commercial system registers under SuSI.

This guide walks through each program in order, explains which one applies to a new net-metered commercial system, and shows where the certificate value appears in a financial model. Dates and program names below come from BPU orders. Incentive values are set by the BPU by market segment, so check the current BPU rules before you rely on any figure.

The legacy SREC program

Solar renewable energy certificates (SRECs) were New Jersey’s original market-based solar incentive. Each SREC represented one megawatt-hour of solar generation, and electricity suppliers bought SRECs to meet the state’s solar requirement. Prices moved with supply and demand, which is why older articles track SREC prices NJ owners saw from year to year.

The BPU closed the SREC Registration Program to new registrants on April 30, 2020, after the state reached its 5.1% solar milestone. Systems already registered continue to earn SRECs for the rest of their qualification life. If you own a building with an older array, those certificates are still part of its income, but a new system cannot join this program.

The TREC transition program

The Transition Incentive program, created by the BPU in December 2019, opened its portal on May 1, 2020. It issued Transition Renewable Energy Certificates (TRECs) for each megawatt-hour produced. Instead of a floating market price, TRECs used a fixed base value adjusted by a factor for each project type, such as rooftop, carport or ground mount.

The BPU closed the TREC NJ program to new registrations at 11:59 p.m. on August 27, 2021. Projects already accepted, or with applications received by that cutoff, stayed in the program, and the BPU later granted certain extensions. As with legacy SRECs, an existing TREC project keeps its certificates, but a new commercial project goes into SuSI.

The NJ SuSI program: ADI, CSI and SREC-IIs

The NJ SuSI program, created under the Solar Act of 2021 (L. 2021, c. 169), opened its ADI program at 12:00 a.m. on August 28, 2021. The BPU established the Competitive Solar Incentive (CSI) program on December 7, 2022, completing SuSI. Both programs issue SREC-IIs, one per megawatt-hour, for a 15-year term.

• ADI (Administratively Determined Incentive): a fixed SREC-II value set by the BPU for each market segment. It covers residential projects, community solar and net-metered non-residential projects of 5 MW or less.
• CSI (Competitive Solar Incentive): a competitive solicitation in which projects bid an SREC-II price. It covers grid supply projects and net-metered non-residential projects larger than 5 MW.

ADI capacity is released in megawatt blocks for each energy year, which starts June 1. The BPU opened Energy Year 2027 blocks on June 1, 2026, and each block stays open until it is fully subscribed or June 1, 2027, whichever comes first.

Which program applies to a new commercial net-metered system

For most commercial rooftops, carports and smaller ground mounts in New Jersey, the answer is the SuSI ADI program, net-metered non-residential segment. As of the BPU’s May 2026 order, the ADI values for that segment are:

That order kept the non-residential values unchanged while lowering the residential value. The BPU resets incentive values at least once every three years, so a project locks in the value in effect when it registers. A net-metered system above 5 MW would go through CSI instead. LandAir confirms the correct segment and value for each account at registration.

After registration, ADI projects have ongoing reporting duties. Our guide to SuSI quarterly reporting for commercial systems covers what owners file.

How certificate value shows up in a payback model

In a financial model, SREC-II income is a separate revenue line, alongside the electricity bill savings from net metering. A simple way to estimate it:

• Estimate annual production in MWh from the system design.
• Multiply by the SREC-II value for your subtype.
• Apply an annual degradation rate to production.
• Stop the revenue at the end of the 15-year term.

Because the ADI value is fixed for the term, this line is more predictable than legacy SREC income. Federal benefits enter the same model. The investment tax credit under section 48E is 30% for qualifying projects, and the deadlines depend on when construction begins, as explained in our federal tax credits and grants guide. Federal 100% bonus depreciation is permanent under current law, with no scheduled phase-down, but New Jersey is decoupled from it for the state Corporation Business Tax, so state and federal depreciation are modeled separately.

For a full walk-through of cost, savings and payback, see our commercial solar cost and ROI guide for New Jersey. If you plan to finance the system, C-PACE financing for commercial solar in New Jersey is one option alongside a bank loan. To see SREC-II income, bill savings and tax benefits modeled for your building, request a free Savings Snapshot and LandAir will confirm which program and segment apply to your account.

Frequently asked questions

Can a new commercial solar system in New Jersey still earn SRECs?

Not legacy SRECs. The SREC program closed to new registrants on April 30, 2020, and the TREC program closed on August 27, 2021. New systems register under the SuSI program and earn SREC-IIs.

What is the difference between ADI and CSI?

ADI pays a fixed SREC-II value set by the BPU for each market segment and covers net-metered non-residential projects of 5 MW or less. CSI is a competitive solicitation for grid supply projects and net-metered non-residential projects larger than 5 MW.

How long do SREC-IIs last?

SREC-IIs are earned for each megawatt-hour of production over a 15-year term under the SuSI program. Check the current BPU rules for the qualification details that apply to your registration.

What are SREC prices in NJ for a commercial rooftop in 2026?

Under the ADI program, values are set by the BPU by market segment. As of the BPU’s May 2026 order, a net-metered non-residential rooftop, carport, canopy or floating system under 1 MW dc receives $110 per MWh, and the same subtypes from 1 to 5 MW dc receive $100 per MWh.