NJ ADI Overview - What it is, How it works

What NJ ADI is and how it works

In 2026, the Administratively Determined Incentive (ADI) will be the driving force behind New Jersey's residential solar market. It offers a stable, 15-year cash payment for every megawatt-hour (MWh) of solar energy your home produces, moving away from the previously unpredictable SREC market. Here's a breakdown of what the ADI program means for you:

Guaranteed 15-Year Payments: Under the ADI program, for every 1,000 kWh your solar panels generate, you earn one SREC-II certificate. For the 2025-26 energy year, the rate is set at $85.90 per MWh. Starting June 1, 2026, this rate will increase to $95.23 per MWh. Once your system is registered, your rate is locked in for 15 years, protecting you from any potential rate decreases.

Residential Earnings Breakdown: A typical home solar system in New Jersey ranges from 8 kW to 12 kW. Based on this, the ADI program can yield the following earnings:

• An 8 kW system can generate about 9.6 MWh annually, resulting in $824.64 per year, totaling $12,369 over 15 years.
• A 10 kW system can produce around 12.0 MWh annually, leading to $1,030.80 per year, or $15,462 over 15 years.
• A 12 kW system can produce approximately 14.4 MWh annually, resulting in $1,236.96 per year, totaling $18,554 over 15 years.

Key Deadlines & "Auto-Degression": The NJ Board of Public Utilities uses an "auto-decrease" mechanism to manage the budget. A 10% reduction in incentive rates is scheduled for March 13, 2026, if certain capacity milestones are reached. To secure the current higher rate, your solar provider must submit your system's registration before construction begins.

Eligibility for Homes: To be eligible for ADI payments, your residential system must meet the following criteria:

• It must be connected to one of the four major utilities (PSE&G, JCP&L, ACE, or RECO) under a 1-to-1 net metering agreement.
• The system should primarily offset your home's energy use, not for commercial profit.
• Registration through the Successor Solar Incentive (SuSI) portal by a licensed contractor is required.

How the Money Reaches You: ADI payments are made in liquid cash, not as a tax credit. Your inverter tracks your solar production in real-time, and every 1,000 kWh produced earns you a certificate in your GATS account. These certificates are automatically sold at the fixed ADI rate, and you receive payments quarterly, either via direct deposit or check.