Net Metering in New Jersey: How It Works and Why It Still Matters

If you're considering solar for your New Jersey home, you’ve probably heard the term “net metering.” But what exactly is it, and why does it matter?

At SLM Solar, we believe understanding net metering is one of the most important parts of evaluating solar for your home — because it directly impacts how much you save on your electric bill.

What Is Net Metering?

Net metering is a billing arrangement that allows you to send excess solar energy back to the electric grid. In return, your utility company gives you credit for the energy you produce.

When your system produces more power than your home uses (like during a sunny afternoon), that extra energy flows back to the grid. At night or on cloudy days, when your system produces less, you draw power from the grid — and your credits help offset the cost.

Think of it like rollover minutes from the old cell phone plans: produce more now, use those credits later.

Net Metering Infographic

How Net Metering Works in New Jersey

New Jersey is one of the states with a strong net metering policy, which makes solar especially worthwhile. Here’s how it works:

• Your electric meter runs forward when you use power, and backward when you send power back to the grid.

• Each month, you’re billed for the net amount of energy used (energy in minus energy out).

• If you send more power to the grid than you use, the extra credits roll over to the next month.

• At the end of the year, any leftover credits may be purchased by your utility company at a reduced “wholesale” rate, they may roll over into the following year or they may be pursuant to a use-it-or-lose-it clause.

  
  

This setup helps you maximize savings by using your solar production to directly offset your energy usage.

Why Net Metering Still Matters in 2025

Some states have started to change or phase out net metering. While there have been discussions in New Jersey about adjusting the policy, as of 2025, homeowners still benefit from a net metering program that rewards solar energy fairly.

Locking in your system under current rules helps protect your savings, even if policy changes come in the future.

What to Know Before You Install

• Net metering works best when your solar system is designed to match your home’s actual usage. Overproducing doesn’t always mean more money.

• Your credits apply to energy charges, but not necessarily to fixed charges on your bill.

• If you're in a town served by JCP&L, PSE&G, Atlantic City Electric, or another NJ utility, the exact rules may vary slightly — but the core benefits remain.

  
  

At SLM Solar, we size your system carefully, handle all the paperwork, and walk you through exactly how your bill will change with solar.

Your new utility meter will have NET written on it.

Final Thoughts

Net metering is one of the biggest reasons solar continues to make financial sense in New Jersey. It’s a tool that puts your excess energy to work — and it can dramatically reduce your monthly electric bills.

If you’re ready to take advantage of it, now’s the time. Policies may evolve, but locking in your solar system today ensures you get the full benefit under current rules.

Call or text SLM Solar at 765-276-6952 or visit www.slmsolarnj.com to schedule your free estimate