Do NJ SRECs Expire? The 10 vs 15 Year Rule Explained

Yes. New Jersey solar certificates (SRECs) pay for 10 or 15 full years, and then they stop. Your panels keep working after that, but one of your two income streams shrinks to a fraction of what it was.

Picture a warehouse owner in Middlesex County. The roof array went live in 2012, the certificate checks (SRECs) have arrived for years, and nobody has looked at the paperwork since. Then someone mentions that "the SRECs run out soon." When, exactly? And what happens to the system after that? We have heard that exact question from New Jersey owners more than once.

This guide is for owners of commercial solar systems in New Jersey that are 6 or more years old, and for the property managers, brokers, lenders and attorneys who work with them. It explains which program your system is likely on, how long it pays, how New Jersey's energy years set your end date, and what your choices are when the payments stop. For the bigger picture on older systems in the state, see our New Jersey commercial solar guide.

What is an SREC?

An SREC (Solar Renewable Energy Certificate, also called a solar renewable energy credit) is earned every time your system produces 1,000 kilowatt-hours of electricity.

An SREC is tied to energy produced, not to the size of the array. A system earns one certificate for every 1,000 kilowatt-hours (one megawatt-hour) it makes. Sunlight and system size together decide how fast it gets there: a large array, or a run of long sunny months, reaches 1,000 kilowatt-hours faster and earns certificates faster. A smaller array, or a cloudy stretch, earns them more slowly. Every type of project earns SRECs, from rooftops to carports to ground mounts.

Why are SRECs worth money?

Because companies that sell electricity in New Jersey are required to get part of their power from solar, and buying SRECs is how most of them meet that requirement.

The companies that sell electricity to homes and businesses in New Jersey (the ones that send you a bill, not solar owners like you, even though your system makes power too) must cover a set share of the electricity they sell with solar each year. They have two ways to do it. They can produce the solar themselves, or they can buy SRECs from solar owners like you. If they come up short, they pay a penalty called the Solar Alternative Compliance Payment (SACP).

So an SREC is a second paycheck. Your system already saves money on your electric bill (or earns money under a power purchase agreement). The certificate checks come on top of that, as separate income.

Why do SRECs expire?

The state only lets a system earn SRECs for a fixed number of years, called its qualification life. After that, its power earns Class I RECs, which still pay, but far less.

The qualification life is the period during which your system's power counts as solar for SREC purposes: 10 or 15 full years plus the tail to the next May 31, depending on when your system registered (more on that below). The rules are in the state's administrative code, N.J.A.C. 14:8-2.4, and the New Jersey Clean Energy Program describes SRECs as revenue for the first 10 or 15 years.

When the qualification life ends, your system does not stop earning certificates altogether. Its power moves from SRECs to Class I RECs (often called Tier 1 RECs). The difference matters: SRECs are a special carve-out for solar only. Class I RECs can come from wind, solar, hydropower and other renewable sources, so there are far more of them for sale, and each one is worth far less than an SREC. They still produce income, just a small share of what the SRECs paid.

Does my system get 10 years or 15 years?

10 or 15 full years, plus a short tail to the next May 31. Which one you get depends on your program and when your system's registration was filed.

New Jersey has run three generations of solar certificate programs. Here is how long each one pays:

• ●Legacy SREC program (the original one). If your system's registration was filed on or before October 29, 2018, it gets 15 years. If it was filed after that date, it gets 10 years. The NJBPU (the New Jersey Board of Public Utilities, the state agency that runs these programs) set that cutoff in 2018. This program closed to new registrations on April 30, 2020. Legacy SREC prices are set by supply and demand, with a ceiling: because suppliers can pay the SACP penalty instead of buying an SREC, the SACP caps what an SREC can sell for.
• ●Transition Incentive (TREC). TREC stands for Transition Renewable Energy Certificate. It was a bridge for projects that were in the SREC line but not yet running when the legacy program closed, plus new projects that registered before August 28, 2021. Every TREC system gets 15 years. Unlike a legacy SREC, a TREC has a fixed value: the Board set a flat $152 per certificate, multiplied by a factor for your type of project. A commercial rooftop or carport system that uses net metering has a factor of 1.0. A commercial ground-mounted one has a factor of 0.6.
• ●Successor Solar Incentive (SuSI). This is the current program. It opened on August 28, 2021 and pays SREC-IIs (the second generation of the certificate) for 15 years. Any system on SuSI is younger than 6 years old, so it is outside what this guide covers.

What is an energy year, and why does my end date fall on a May 31?

New Jersey runs its solar programs on energy years that go from June 1 to May 31, so every legacy SREC term ends on a May 31.

An energy year is New Jersey's compliance year for solar. It starts June 1 and ends May 31, and suppliers' solar requirements are counted energy year by energy year.

Your qualification life starts on the day your utility (PSE&G, JCP&L, Atlantic City Electric or Rockland Electric) gave your system permission to operate. It then runs for 10 or 15 full years and keeps going until the next May 31. That extra stretch is the tail. For example, a 15-year system that got permission to operate in September 2012 would reach 15 full years in September 2027, then keep earning SRECs through May 31, 2028: about eight extra months of certificates.

The length of your tail depends on when in the energy year your system turned on, which is why your exact end date matters. The next section shows where to find it.

Does selling the system or the building reset the clock?

No. The clock stays with the system and its equipment, no matter who owns it or where it sits.

The state rules say a system keeps the qualification life it was first given, even if it stops running for a while, is moved, or is sold. Taking panels off for a re-roof and putting them back does not restart anything either.

This matters in a sale. A buyer, lender or attorney will want to know how many years of certificate income are left, because that is part of what the system is worth. If you are selling the building, our post on who carries the risk when you sell a commercial solar system covers the questions that come up.

What happens when my SRECs end?

The panels keep making power and you keep saving on your bill. Only the certificate income changes.

• ●Net metering continues. Net metering, where power you send to the grid is credited against your bill, is a separate rule. It is not tied to your SREC term.
• ●SREC income stops. After the qualification life ends, your power no longer earns SRECs.
• ●Class I RECs take over. For legacy SREC systems, the state rules let that power earn Class I RECs instead. They still pay, but far less than SRECs did.

Bill savings matter more than ever with New Jersey's rising rates. Read more about New Jersey's electric bill crisis and why each kilowatt-hour your system makes is worth more today.

How do I check my own end date?

Pull your permission to operate letter, then confirm the program and dates with the state records.

1. Permission to operate letter. This is the start date. Your installer or utility may have a copy if you do not.
2. New Jersey Clean Energy Program registration. Your installer filed this when the project was set up. It shows which program you are in and when you registered, which tells you whether you are on the 10 or 15 year track.
3. PJM-GATS. GATS is the regional tracking system where your certificates are created and held. Your account shows what type of certificate your system earns.
4. Call the program. The New Jersey Clean Energy Program's line is 1-866-657-6278, weekdays 8 a.m. to 7 p.m. Eastern (as of October 2026).

Missing some of these papers is common, especially if your installer has closed. Our guide on selling a solar system without the paperwork explains what you can do, and our list of helpful documents shows what to gather.

Should I keep, fix or sell my system when the SRECs end?

It comes down to whether the bill savings alone still cover the cost and hassle of running the system.

When certificate income drops, upkeep costs do not. Inverters wear out, monitoring lapses and roofs need work. Owners usually land on one of three paths:

• ●Keep it as is. This works if the system is healthy and the bill savings comfortably cover maintenance and insurance.
• ●Fix it up. If production has dropped, repairs can restore savings. Start by checking whether your commercial solar system is still performing before you spend money.
• ●Sell it. A buyer takes over the system, the contracts and the upkeep. Do Good Energy buys commercial systems that are 6 or more years old as-is, takes over every contract and responsibility, and keeps them running. We are a young company buying our first systems now, so we will tell you plainly what we can and cannot do.

The best time to decide is a year or two before the SRECs end, not after. That gives you time to gather records and compare your options without pressure.

Start With a Ballpark Estimate

Our free tool gives you a price range in about 23 seconds, with no obligation.

If your SREC or TREC end date is coming up and you want to know where you stand, try our solar estimate tool. The range is a starting point; any final number depends on your system's condition, contracts and records.