What You’ll Learn:
- How solar policy has evolved in New Jersey, Pennsylvania, and at the federal level
- What solar incentives and regulations are currently in effect
- How future legislation — including the so-called “big, beautiful bill” — could dramatically change the solar landscape
- Why acting now protects your incentives and positions you ahead of any policy shakeup
Solar incentives don’t just fall from the sky — they’re built on decades of evolving government policy. From tax credits to net metering rules to local permitting requirements, solar’s growth has always been tied to legislation.
In this guide, we break down where solar policy has been, where it stands now, and what’s likely to come — specifically for New Jersey, Pennsylvania, and federal programs.
Federal:
- In 2005, the Energy Policy Act introduced the Investment Tax Credit (ITC), covering 30% of the cost of solar installations.
- This credit has gone through extensions, reductions, and renewals — but it’s been the cornerstone of U.S. solar growth for nearly two decades.
New Jersey:
- Early adopter of solar incentives
- Rolled out one of the first SREC (Solar Renewable Energy Certificate) markets, rewarding homeowners for every megawatt-hour of solar power they generated
- Pioneered strong net metering policies
Pennsylvania:
- Joined the AEPS (Alternative Energy Portfolio Standards) in 2004
- Created its own SREC market, requiring utilities to purchase solar energy credits to meet clean energy goals
Result: These forward-thinking policies made NJ and PA some of the most solar-friendly states in the country.
Federal:
- The Inflation Reduction Act (IRA) brought the ITC back to 30% through 2032
- Applies to solar panels, batteries, inverters, labor, permitting, and more
- Still one of the most generous renewable energy policies globally
- The current administration is looking to discontinue this incentive of systems not installed and powered-ON by December 31, 2025.
New Jersey:
- The original SREC program was replaced by SREC-II, which still pays homeowners for solar production — though at lower rates
- Maintains property tax exemption for the added home value of solar
- Also offers sales tax exemption on solar equipment
Pennsylvania:
- The SREC market is still active but facing declining prices and fewer buyers
- Most utility incentives have expired or are hyper-local
- No statewide property or sales tax exemptions for solar
Today’s takeaway: Federal support is still strong (for now), but state incentives are clearly trending down. The window for max benefits is narrowing.
Federal:
While the 30% ITC is officially in place through 2032, it faces new political threats. The current administration’s proposed budget — often called the “big, beautiful bill” — includes troubling language aimed at:
- Eliminating renewable energy tax credits for systems not powered-ON by December 31, 2025
- Redirecting clean energy funds to non-renewable sectors
- Slashing solar-related incentives to cut federal spending
Translation? Even though it’s law today, the ITC could be modified or killed early, depending on budget negotiations and election outcomes.
New Jersey:
- Future changes could involve shifting from SRECs to performance-based incentives
- Potential tightening of net metering policies as grid costs increase
- More stringent permitting or design restrictions
Pennsylvania:
- Discussion around community solar legislation is heating up, but has yet to pass
- AEPS standards could be rewritten or dissolved
- SREC markets may close or be consolidated under utility control
Solar is growing — and support programs are shrinking. If you wait, you might lose the very incentives that make solar a no-brainer today.
While other solar companies scramble to adapt, we’ve engineered our business to move fast — no matter the policy changes.
- AI-powered system design = fewer delays
- Direct-to-consumer pricing = no sales fluff or bloated financing
- Streamlined permitting in NJ and PA = faster approvals
- Ready inventory = no waiting on panels, batteries, or inverters
While others are backlogged, we’re breaking ground.
If solar is on your radar, now’s the time to act. Today’s policies are generous. Tomorrow’s? No guarantees. From New Jersey to Pennsylvania to the halls of Congress, the message is clear: incentives are shrinking, demand is growing, and the smart money is moving now.
🔗 See What Incentives You Still Qualify For
🔗 Get Your Custom Solar Quote Before the Rules Change
Enter your address to see if your home is ready for Solar 👇👇👇
By clicking “Next” you agree to allow us and our affiliates to contact you using the information you provide. We never sell your information. See our Privacy Policy for more info.
We’re a Different Energies company.
