New Jersey Net Metering Laws & Utility Buyback Explained
Spoke ArticleNew Jersey1 min readVerified Q1 · 2026

New Jersey Net Metering Laws & Utility Buyback Explained

SBI Editorial DeskUpdated Q1 · 20262 sections

New Jersey mandates powerful net metering policies that protect homeowners and guarantee fair compensation for solar production. If you use major utilities like PSE&G, JCP&L, or Atlantic City Electric (ACE), understanding net metering is vital to maximizing your savings.

01

How 1:1 Retail Net Metering Works

During bright summer days, your system will likely generate more power than your home can consume. This excess electricity flows backwards through your meter into the grid. Your utility company is required by law to credit you for this power at the 1:1 retail rate. You bank these credits during the summer and use them to offset your energy consumption during the shorter winter days.

Commercial rooftop deployment — high-density bifacial array
Fig · 01Commercial rooftop deployment — high-density bifacial array
02

The Annual True-Up Cycle

New Jersey operates on an annualized net metering cycle. If, at the end of your designated 12-month billing year, you have produced more electricity than you used, your utility company will compensate you for the excess generation at the wholesale rate. When paired with the 15-year SuSI payouts, New Jersey's net metering laws ensure your roof becomes a true income-producing asset.

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