New Jersey Solar Incentives
Solar energy system expenses are offset by federal and state incentives. The below list of New Jersey solar incentives provides the latest information for both end users and PPA providers:
New Jersey Solar Incentives
- Rebates: New Jersey became the most aggressive state in the
country for solar installations due to an exceptionally generous
rebate program. New Jersey solar incentives now rely less on
rebates and more on SRECs. Rebates for residential installation
is $1.75 per Watt with an energy audit, and $1.55 without.
Commercial installations of under 50kW also qualify for a $1.00
/ installed Watt rebate.
- SREC's: Solar Renewable Energy
Certificates (SRECs)
are earned during the course of system use for 15 years and have value
which helps repay the costs of your solar electric system. The
New Jersey SREC program requires electric companies to buy a
pre-determined number of SRECs each year. SREC certificates are
bought and sold on the open market.
- Net Metering: New Jersey electric companies are required to provide an electricity metering arrangement which allows you to "bank" your surplus power with them. After installing a special electric meter at your site your meter (with a properly sized system) will spin backwards during sunny daytime hours, effectively earning you credits for power you put back on the grid. As the sun goes down you draw power from the grid. Ideally, your meter spins backwards as much as forwards, netting zero electric charges to you.
Federal Solar Incentives
- Solar Federal Energy Tax Credit:
You may deduct 30% of your system costs (providing your
application is approved for installation) from your taxes and
carry over unused balance for up to six years. This incentive
substantially reduces the total cost of ownership and was
previously unavailable to home owners. Now, commercial
installations qualify to take the tax credit as a grant instead,
relieving the necessity of having significant taxable income to
utilize the tax credit against.
All information provided is to the
best of our knowledge at time of writing.
