What Is Net Metering in New Jersey? (And How It Lowers Your Electric Bill)
If you've been researching solar panels, you've probably heard the term "net metering" — but what does it actually mean for your electric bill? It's one of the biggest financial benefits of going solar in New Jersey, and understanding it could be the thing that finally makes your decision easy.
How Net Metering Works in New Jersey
Here's the simple version: your solar panels will sometimes produce more electricity than your home needs — especially on sunny afternoons when everyone's at work or school. Instead of wasting that energy, net metering sends it back to the grid. Your utility company credits your account for every kilowatt-hour (kWh) you send back.
Then, at night or on cloudy days when your panels aren't producing enough, you draw from the grid like normal — but you use those stored credits to pay for it. It's essentially the grid acting as your free battery.
New Jersey's Net Metering Is One of the Best in the Country
All four major New Jersey utilities — PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric — are required by state law to offer net metering. Even better, NJ credits you at the full retail rate, meaning if you export 1 kWh to the grid, you get 1 full kWh back. That's a true one-to-one exchange with no delivery fees or hidden deductions on the swap.
Credits roll over month to month, so energy you bank during sunny summer months can offset your bills in winter. Most NJ homeowners see their bills drop dramatically — many get to near zero.
Why You Shouldn't Wait
Net metering programs across the country are being scaled back as more homeowners go solar. New Jersey has already been reviewing its net metering policy, and the current favorable 1:1 retail rate structure could change. Homeowners who go solar now are typically grandfathered into current rates — locking in the best terms for 25+ years.
Make Net Metering Work for You
At Advisor Solar, we design every system to maximize your net metering benefit. That means right-sizing your panels to your actual energy usage so you're banking credits, not leaving money on the table.