Community Solar FAQs
1. Community solar sounds too good to be true, how do I know if a project is a good choice?
In order to be approved as a Community Solar Project operating in one of New Jersey's Investor-Owned Utility (Atlantic City Electric, Jersey Central Power and Light, Public Service Electric and Gas, and Rockland Electric) service territories*, all projects are reviewed by the New Jersey Board of Public Utilities (NJBPU). However, the Board does not guarantee any specific level of savings. Prior to signing up for community solar, potential subscribers are encouraged to carefully review the subscription contract details to make sure that all the contract terms, including any cancellation fees or price escalators, are considered.
* Municipal Electric Companies may also have community solar projects, but those projects are not subject to approval or oversight by the NJBPU.
2. How do community solar bill credits work?
Community Solar projects are large solar arrays that provide a utility bill savings to subscribers based on their subscription size. Utility customers can subscribe to a project within their utility area for up to the amount of electricity their home uses. The subscriber will continue to receive an electric bill, which will now include two new line items:
- Community Solar Billing Credit from the solar power generated by the community solar project
- Subscription Fee the cost of being subscribed to the program
The subscription agreement is structured such that the customer will always keep a set percentage of their community solar bill credit as a savings, while the remainder of the community solar bill credit is applied as a savings on the electric bill.
The percentage of savings retained by the customer will vary based on the subscription agreement. Often there are multiple percentages of savings available for a single project, based on the subscriber type, such as whether the subscriber is a low- and moderate-income (LMI) resident.
The New Jersey Community Solar Project Finder lists the available percentage of savings by customer type for each contract. While we strive to keep the project information up to date, some elements may no longer be accurate. All users are responsible for contacting the project representative and reviewing the terms of subscriber contracts.
3. What if I don't have a roof to put solar on?
No problem! Under community solar, no solar panels are installed on your roof or property. In a community solar project, a utility customer can sign up as a participant to a solar installation sited elsewhere (on a landfill, municipal building, church, recreation center, commercial building, warehouse, etc.) and receive credit on their utility bill for the electricity created by the solar panels. Several customers can sign up for, or ‘subscribe,’ to the same solar installation for a percentage of the electricity produced by the community solar project.
4. What should I do if I have received a notification that my household will be enrolled in a Community Solar Project through the Automatic Enrollment process?
Starting in 2025, New Jersey's Community Solar Program allows municipal governments to create a Municipal Automatic Enrollment Project to bring the benefits of community solar to low- and moderate-income residents in their community. If you receive a notice that your household has been selected for an automatic enrollment program, you do not need to do anything to start enjoying the benefits of the community solar project.
Once the project your municipality has selected is electrified, your monthly electric bill will show a community solar credit and subscription fee, as described above. If a resident does not want to participate in the Community Solar program for any reason, instructions for opting out of the program will be included with the notification received. Participants can opt-out of the program at anytime without having to pay a fee or penalty.
5. Can I participate in community solar as a third-party supplier customer?
Yes, you are eligible for community solar even if you receive your electric supply from a third-party supplier. This also applies if you participate in your municipality's government energy aggregation program (or "GEA"), which is available in some municipalities as a municipally-negotiated third-party electric supply contract.