Solar system installations are a breeze in New Jersey due to the great weather. With the always-rising electricity prices, you can save on the cost of solar installation thanks to several solar programs available to consumers today. These include net metering, federal tax credits, and the state’s temporary renewable energy program. In addition, check over here to learn about the New Jersey Solar Initiative alternatives, among other programs. Residents of New Jersey can recoup their investment in these excellent programs as shown below;
New Jersey’s federal tax credit provides a major incentive for installing solar panels on homes and businesses. The Federal ITC, the Federal Solar Investment Tax Credit, is a significant incentive for all households in the United States. The tax credit is 30% of the total cost of solar on your property. You can deduct this tax credit from your federal taxes within the year you order and install solar panels. The average price of solar panels in New Jersey is $19,393, so your tax credit is approximately $5,818.
The 30% federal tax credit applies to all solar panel installations in the United States through 2032. The federal government has planned to reduce this tax credit to 26% in 2033 and 22% in 2034. It will expire in 2035 unless Congress renews it. If you want to maximize your savings on installing a solar system in New Jersey, now is the time to consider solar.
Net metering is fairly simple and increases the value of residential solar power. When your solar panels generate more electricity than your household uses, the excess is fed into the grid. New Jersey’s net metering regulations require electric utilities to give their customers credit for the sale price of the excess solar power, which is deducted from their regular electric bill.
Suppose your home’s solar system generates 2,000 kWh of electricity per month, but your household only needs 1500 kWh. In this case, the remaining 500 kWh is fed back into the grid. Net metering gives you the full value of that 500 kWh. In places where this benefit is unavailable, utilities decide how to compensate you for the excess solar power, and many usually provide partial credit.
The NJ-BPU (New Jersey Board of Public Utilities) began offering an SREC (Solar Renewable Energy Certificate) program in 2018. It allows New Jersey residents to receive money for the electricity they generate with their solar panels. NJ-BPU implemented a transitional Renewable Energy Certificate (TREC) program similar to the SREC program. However, it offered consumers a guaranteed price for TRECs supplied by their residential solar system rather than relying on market fluctuations.
Finally, in 2021, the state implemented the Successor Solar Incentive( SuSI ) program, which replaces the state’s previous SREC and TREC initiatives. The SuSI initiative will replace the TREC and SREC programs indefinitely. These initiatives help utilities comply with New Jersey’s RPS (Renewable Portfolio Standards), which requires that a certain percentage of electricity generated in the state come from renewable sources.
Under the new rule, for every megawatt-hour (MWh) generated by solar, you will receive one SREC-II. A typical 10-kW module generates about 12 SREC-IIs annually. It is worth noting that a single SREC-II costs $90, which is the fixed price quoted by SuSI. This price applies regardless of the type or size of the home solar system; this is a departure from previous initiatives and an attempt by NJ-BPU to simplify the incentives. The SuSI program benefits apply for 15 years from the date you install your solar system.
The sales tax exemption for solar systems in New Jersey allows you to waive the 7% sales tax when you buy solar. So, if you expect it to cost $15,000 to install solar panels in your home, you will save $1,050 in state taxes when you purchase your system. The relief applies to all typical solar energy and storage systems, such as battery systems.
New Jersey law has provided tax exemptions for renewable energy systems since 2008. It includes property tax exemptions for residential solar installations service and their maintenance. Installing solar panels can increase the value of your property. As a result, you will have to pay additional property taxes each year to offset the increased value of your home without a property tax exemption.
Fortunately, all New Jersey homeowners are eligible for a property tax exemption for renewable energy systems. It amounts to about 100% of the additional value created by installing solar panels on your property.
Electricity rates in New Jersey are expensive, but numerous solar programs in New Jersey subsidize the installation of panels on your home. As such, you can save a lot of money on your electric bills this way. While these rebates are still available, hiring a competent contractor to install solar panels can cut the costs of powering your home.