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Bill

AS

Bill

A 4365

Requires State to bear costs of interconnection of net-metered, residential, Class I renewable energy systems.

2026-2027 Regular Session Introduced by Alex Sauickie

New Jersey would pay all interconnection costs for residential solar systems, removing a major financial barrier to rooftop solar adoption but shifting expenses to taxpayers or ratepayers.

Introduced, Referred to Assembly Telecommunications and Utilities Committee
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Bill Summary · A 4365

Legislative bill overview

Bill A 4365 requires New Jersey to pay the costs associated with connecting residential, small-scale renewable energy systems (like rooftop solar) that use net metering to the electrical grid. Currently, property owners typically bear these interconnection costs themselves. The bill shifts this financial burden to the state.

Why is this important

Interconnection costs—which include engineering, inspection, and equipment upgrades—can range from hundreds to thousands of dollars and represent a significant barrier for homeowners considering solar installation. By eliminating this upfront expense, the bill could dramatically increase residential renewable energy adoption and support New Jersey's climate goals. However, this creates a question about who ultimately pays: taxpayers or utility customers through rate increases.

Potential points of contention

  • Cost allocation: Shifting interconnection expenses to the state budget means either raising taxes, redirecting funds from other programs, or utility ratepayers seeing increased bills to reimburse the state
  • Fairness concerns: Non-solar homeowners would subsidize solar adopters, who tend to be higher-income homeowners with suitable roofs
  • Utility company impact: Utilities may argue the policy undermines cost-recovery models and creates administrative burden for managing state-funded connections
  • Scalability questions: If solar adoption surges due to eliminated costs, total state expenditure could become substantial and difficult to predict

Compiled from official sources — confirm details with the bill’s official record.

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