June 5, 2025
New Jersey’s Successor Solar Incentive (SuSI) Program was launched by the New Jersey Board of Public Utilities (NJBPU) in August 2021 as the long-term replacement for the state’s earlier SREC and TREC programs. The goal of SuSI is to support continued growth of solar energy in New Jersey while ensuring that public incentives create quality, fair-paying jobs.
The program is structured around two main components:
(1) The Administratively Determined Incentive (ADI) Program, which provides fixed incentives called SREC-IIs (provided by the state) to net-metered residential, non-residential, and community solar projects up to 5 megawatts (MW).
(2) The Competitive Solar Incentive (CSI) Program, which is designed for larger projects over 5 MW and awards incentives through a competitive solicitation process. The current annual target is to add 300 MW of new solar power and 160 MWh of energy storage combined with solar.
Each SREC-II represents 1 megawatt-hour (MWh) of electricity generated from a qualifying solar project. The value of each SREC-II is set by the state and varies based on the type and size of the project (see the "Useful Resources" section below for the most recent pricing).
All solar facilities receiving state incentives (such as SREC-II credits) with a capacity greater than 1 MW (dc) are required to pay all construction workers and apprentices at or above the applicable local prevailing wage rate for their trade and location.
There are several exceptions to the prevailing wage requirements:
(1) Any solar electrical generation facility that is less than 1 MW (dc) in maximum generating capacity.
(2) Any solar electrical generation facility that is installed on an owner-occupied home (regardless of the maximum generating capacity).
All contractors working on eligible projects are required to adhere to the following compliance guidelines:
(1) Pay, at the minimum, the appropriate prevailing wage to all construction workers and apprentices involved in the project. For guidance on how to find the proper local wage determination, please consult pages 63 to 67 of DSPTCH's IRA Field Guide: https://www.dsptch.work/ira-field-guide.
(2) According to the New Jersey Prevailing Wage Act, specifically under N.J.S.A. 34:11-56.29, all contractors and subcontractors must maintain clear and accurate certified payroll records that include the worker’s name, trade/craft, and the exact hourly wage paid for work performed on an eligible project. These records must be kept on file for at least two years after the wages are paid and must be made available for inspection by the awarding public agency, any party involved in the project agreement, and the state labor commissioner during reasonable hours.
(3) All apprentices employed on eligible projects must be enrolled in registered apprenticeship programs with the US Department of Labor.
(4) A poster with the proper wage determination must be displayed prominently where all workers have access.
Enforcement of these compliance guidelines is handled by the New Jersey Commissioner of Labor and Workforce Development.
According to the official New Jersey Department of Labor and Workforce Development Website, if a contractor or subcontractor is found to have failed to pay proper prevailing wages to their workers, they will be banned from taking contracts for public or state-assisted projects (such as solar projects participating in the SuSI Program) in New Jersey for three years following the violation.
Additionally, any contractor/subcontractor who willfully violate the Prevailing Wage Act may face criminal penalties. Violations include refusing to provide required records, falsifying payroll information, obstructing investigations, underpaying workers, or failing to comply with other provisions of the law. If found guilty, the following penalties may apply:
(1) A fine between $100 and $1,000
(2) Imprisonment for 10 to 90 days
(3) A combination of both fines and imprisonment
Each affected worker and each week in which underpayment occurs is considered a separate offense under N.J.S.A. 34:11-56.35.
Lastly, any contractor/subcontractor who pays their workers less than the prevailing wage rates must pay all back wages owed, plus 5.5% annual interest (as set by New Jersey Court Rules, 4:42-11).
• SREC-II Pricing Under ADI Program
