Your New Jersey Solar Contract Is Costing You More Than You Were Told. Here's How to Fight Back.
The short version: Most New Jersey solar leases have an escalator clause. It raises your payment 2.9% every year. Over 25 years, a $150 payment grows to more than $300. Vision Solar filed for Chapter 7 bankruptcy in New Jersey on December 28, 2023. Big solar companies that worked in New Jersey have gone bankrupt. Sunnova Energy is one of them. If your solar panels aren't saving what you were told, you have real rights. Start with a free Solar Relief Assessment to see what's actually in your contract.
There is a line on your old solar proposal that says "SREC income" - and the number next to it is probably wrong now.
New Jersey's Solar Renewable Energy Certificate program was one of the biggest reasons homeowners signed solar contracts in this state. Your salesperson pointed to SREC revenue as part of the savings math. But New Jersey transitioned from SRECs to the Successor Solar Incentive (SuSI) program - and the economics shifted under your feet.
If you're a New Jersey homeowner and your solar panels aren't saving you what you were told, the SREC-to-SuSI switch is one reason why. But it's not the only one.
Your payments are going up. Your savings aren't coming through. And the company that knocked on your door and made those promises? They might not exist anymore.
The New Jersey Attorney General Is Watching Solar
Vision Solar filed for Chapter 7 bankruptcy in New Jersey on December 28, 2023. The case is 1:23-bk-21939 in federal court. The company had more than 60 legal actions pending against it across several states. In November 2025, New Jersey AG Matthew Platkin joined other state AGs in a lawsuit against the federal EPA. That lawsuit is about a $7 billion Solar for All program cut. New Jersey lost about $156 million.
This matters to you. State enforcement agencies have put it on the record. The same sales tactics used on New Jersey homeowners are now named in court filings. If what your salesperson told you doesn't match your contract, you're not alone. You're not crazy. And you have options.
What's actually in your New Jersey solar contract
Here's what most New Jersey homeowners don't find out until they've been paying for a year or two: the deal you signed isn't the deal you were sold.
Your salesperson told you solar would lower your electric bill. But did they mention the escalator clause buried in your lease agreement? That's the line that raises your payment every year - by as much as 2.9%. On a 25-year lease, that turns a $150 monthly payment into more than $300!
Did they mention that your SREC projections were based on a program New Jersey has already replaced? If your contract's savings math assumed SREC values that no longer apply, those numbers were wrong the day the program changed.
Did your salesperson mention Freedom Forever? Freedom Forever was one of the biggest solar installers in the country. They put in about 2 gigawatts of solar across 35 states. On April 15, 2026, they filed Chapter 11 bankruptcy in Delaware. They owe $500 million to $1 billion. Between 50,000 and 100,000 people are owed money. Freedom Forever was still installing in New Jersey when they filed. If Freedom Forever installed your system, your contract is still active. But the company behind your warranty is now in bankruptcy limbo.
Freedom Forever isn't alone. SolarInsure counted more than 100 solar company bankruptcies in 2024. SunPower filed Chapter 11 in August 2024. A company called Complete Solaria bought them. Sunnova Energy filed Chapter 11 in June 2025. Titan Solar Power filed Chapter 7 in June 2024. Pink Energy, Lumio Holdings, and Vision Solar are on the same list. When your installer goes bankrupt, your payments don't stop. Your contract doesn't cancel. But your warranty usually disappears.
Your rights under New Jersey law
New Jersey gives you some of the strongest consumer protection tools in the country. Here's what your salesperson almost certainly didn't explain.
Your 3-day cancellation window. If a solar salesperson came to your home and you signed the contract there, both federal law (the FTC Cooling-Off Rule) and New Jersey's door-to-door sales regulations give you 3 business days to cancel with no penalty. If your salesperson didn't tell you about this right - and most don't - that affects the enforceability of your agreement.
The New Jersey Consumer Fraud Act. N.J.S.A. 56:8-1 is one of the strongest consumer protection statutes in the country - and it's the reason New Jersey homeowners have real leverage. The CFA doesn't require proof of intent to deceive. An unconscionable commercial practice is enough. And here's what matters most: it allows treble damages and attorney's fees. That means if your solar company misled you, the law allows a court to triple what you're owed. This isn't a technicality. This is a law with real teeth.
PSE&G, JCP&L, and Atlantic City Electric rate structures. Your savings projections were built around your utility's rates. New Jersey rates are above the national average, which made the solar pitch compelling. But if rates haven't risen at the pace your salesperson assumed, the projected savings are overstated. Did your salesperson show you their rate assumptions? If not, the savings picture they painted was built on a guess.
The SREC to SuSI transition. New Jersey's transition from SRECs to the Successor Solar Incentive program changed the economics of solar in this state. If your contract was sold based on SREC values that no longer apply, or if your salesperson projected SREC income as guaranteed, your financial picture is different from what was presented.
Hidden dealer fees are a red flag in solar loans. Solar finance companies add dealer fees of 15 to 30 percent. They roll these fees into your loan balance. They don't list them as a separate charge. The federal Truth in Lending Act says every fee must be shown in writing. A hidden or mislabeled fee can be a legal violation. You've been paying interest on a fee nobody explained to you.
What you can do right now
You don't have to figure this out alone. Here are the first steps for New Jersey homeowners.
File a complaint with the New Jersey Attorney General. Go to https://njconsumeraffairs.nj.gov/. Or call 800-242-5846. Filing is free. The AG's office reads every complaint.
Compare what the salesperson told you to what's in your contract. In most cases, the two don't match. That gap is what makes a case.
Pull your utility bills from the last 12 months. Add up what you're paying the utility plus what you're paying for solar. Compare that to what you'd pay the utility alone. If the numbers don't work, that's a real gap — not just a feeling.
Find the escalator clause and the dealer fee in your contract. These two lines cause the biggest gap between what you were sold and what you're paying. You can spot both by reading your own paperwork.
Every contract is different. But the first step is the same for everyone. Understand what you signed. Solar Home Advocate built the free Solar Relief Assessment for this exact moment. Someone walks through your contract with you in plain English. They tell you your options.
You Signed a Solar Contract in New Jersey. Find Out What It's Actually Costing You.
New Jersey homeowners have some of the strongest consumer protection rights in the country - including treble damages under the Consumer Fraud Act. The SREC program your savings math was built on has already changed. A free Solar Relief Assessment helps you understand what's in your contract, what went wrong, and what you can do about it for you and your family.
[Get free Solar Relief Assessment →](https://solarhomeadvocate.com/free-assessment?utm_source=substack&utm_medium=article&utm_campaign=state-guide&utm_content=new-jersey)Get free Solar Relief Assessment →**
No charge. No obligation. No high-pressure pitch.
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"Sal says: A 2.9% escalator clause nearly doubles your payment over 25 years. Freedom Forever filed Chapter 11 in April 2026. If you signed a solar contract in New Jersey, these facts hit your math and your warranty."
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Frequently Asked Questions
What are my rights if I signed a solar contract in New Jersey?
Did a salesperson come to your home? If yes, you have a 3-day right to cancel. That's under N.J.S.A. §56:8-2.8 (home solicitation provisions) and the federal FTC Cooling-Off Rule. New Jersey also has New Jersey Consumer Fraud Act (N.J.S.A. §56:8-1 et seq.). That law covers unfair or deceptive sales tactics. You can file a complaint with the New Jersey Attorney General. Go to https://njconsumeraffairs.nj.gov/ or call 800-242-5846. If your salesperson didn't tell you about the 3-day cancel rule, that can affect your contract.
Has New Jersey sued any solar companies?
Yes. Vision Solar filed for Chapter 7 bankruptcy in New Jersey on December 28, 2023. The case is 1:23-bk-21939 in federal court. The company had more than 60 legal actions pending against it across several states. In November 2025, New Jersey AG Matthew Platkin joined other state AGs in a lawsuit against the federal EPA. That lawsuit is about a $7 billion Solar for All program cut. New Jersey lost about $156 million.
How does the escalator clause affect my New Jersey solar contract?
Most New Jersey solar leases have an escalator clause. It raises your payment about 2.9% every year. On a 25-year lease, a $150 payment grows to more than $300. New Jersey's average electricity rate is about 23.13 cents per kilowatt-hour in early 2026. That's well above the national average of 17.45 cents. New Jersey's utility rates are climbing fast. That makes your solar math a close call. Utility rates haven't always gone up 2.9% a year. So your solar payment can climb faster than your would-be utility bill. Your savings shrink instead of grow.
What happens if my New Jersey solar company went bankrupt?
SolarInsure counted more than 100 solar company bankruptcies in 2024. Big names include SunPower (Aug 2024), Sunnova Energy (June 2025), Titan Solar Power (June 2024), Freedom Forever (April 15, 2026), Pink Energy (Oct 2022), and Vision Solar (Dec 2023). If your installer went bankrupt, your contract still stands. Your payments still go out. But the workmanship warranty usually dies with the company. The panel maker's warranty (often 25 years) still exists. But filing a claim without an active installer is hard.
Can I cancel my New Jersey solar contract?
Did the salesperson come to your home? Then New Jersey law gives you 3 business days to cancel. That's under N.J.S.A. §56:8-2.8 (home solicitation provisions) and the federal FTC Cooling-Off Rule. If those 3 days have passed, you may still have options. Did they skip the cancel notice? Did they use deceptive sales tactics? Did your loan hide fees? Any of those can open a path to cancel. It depends on your specific contract and how it was sold.
What are hidden dealer fees on a New Jersey solar loan?
Solar finance companies add dealer fees of 15 to 30 percent to your loan. They roll the fee into the principal. They don't list it separately. That means you pay interest on fee money that went to the solar company. Not to your panels. The federal Truth in Lending Act says every fee must be listed clearly. A hidden fee can be a federal violation. That's one of the strongest paths to renegotiate or exit a solar loan.
How do I file a solar complaint in New Jersey?
Go to the New Jersey Attorney General's website at https://njconsumeraffairs.nj.gov/. Or call 800-242-5846. Filing is free. Write down what the salesperson told you at the sale. Save your contract. Save any texts, emails, and voicemails with the installer. If you have a solar loan, keep your loan paperwork. A formal complaint creates a record. That record strengthens any legal review later.