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The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are!

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New Jersey

New Jersey

Incentives/Policies for Renewables & Efficiency

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Solar Energy Option Requirement for Residential Developments   

Last DSIRE Review: 10/08/2014
Program Overview:
State: New Jersey
Incentive Type: Building Energy Code
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics
Applicable Sectors: Residential, Construction
Residential Code:Developers of residential developments with 25 or more dwelling units must offer prospective purchasers the option to install a solar energy system on the dwelling during purchase negotiations
Authority 1:
Date Enacted:
Date Effective:
N.J. Stat. ยง 52:27D-141.1 et seq.

In March 2009 New Jersey enacted legislation (A.B. 1558) designed to support the integration of solar energy systems into new residential developments. The law requires that developers of residential developments with 25 or more dwelling units must "offer to install, or to provide for installation of, a solar energy system" when techinically feasible.

 Solar energy systems are defined to include systems that use solar energy to provide "all or a portion of the heating, cooling, or general energy needs of a dwelling unit, including, but not limited to, nocturnal heat radiation, flat plate or focusing solar collectors, or photovoltaic solar cells." It appears that this broad definition could include passive as well as active solar elements. Developers are required to disclose this option in their advertising materials, which must include information on installation costs, environmental benefits, energy cost savings, and incentive programs for which the installation may qualify.

The law took effect immediately upon enactment; however, the Department of Community Affairs (DCA), in cooperation with the New Jersey Board of Public Utilities (BPU), must develop rules and standards for its implementation. The law notably does not provide a time frame for the adoption of regulations and as of February 2012 no such rules have been established. Covered dwellings with construction permits issued on or after the 90th day after these standards are adopted will be required to comply with the law. The rules and standards to be adopted by the DCA and BPU must define the criteria for "technical feasibility" and include a variety of elements related to ensuring the technical sufficiency of solar energy systems. Among these standards are requirements that the solar energy system:

  • be designed to primarily offset on-site energy consumption
  • use new components
  • have at least a 10-year manufacturer's warranty
  • be equipped with monitoring and performance measuring equipment.

The DCA and BPU are required to create educational materials for developers to demonstrate how solar energy and energy efficiency may be incorporated during building construction, and provide information on incentives which may be available. In cases where a homeowner's association or similar membership association will be responsible for maintenance, repair, or replacement of property upon which a solar energy system is installed, the owner of the dwelling unit may be responsible for certain additional costs if the system affects the performance of these activities.

  New Jersey Department of Community Affairs
Division of Codes and Standards
101 South Broad Street
P.O. Box 802
Trenton, NJ 08625-0802
Phone: (609) 984-7607
Web Site:
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.