There are many incentive programs to lower the cost of solar panels in NJ. Naturally, many people are concerned about the initial costs of switching to solar. Indeed, rooftop solar panel installations can seem expensive when you see your installation cost estimate. With lower monthly utility costs, your solar system can pay for itself over time. In addition, New Jersey has many different programs designed to reduce your solar energy costs. As a NJ property owner, you need to know about the different incentive programs available to you. This way, you can better understand the true cost of your solar system. Read on to learn about the most important incentive programs to lower the cost of solar panels in NJ.
First, transition renewable energy certificates (TRECs) are one of the best solar programs in NJ to offset your solar installation costs. When you enroll in the TREC program, your solar energy system generates one TREC for every megawatt-hour (MWh) of electricity. Then, you can sell these on the market to NJ utility companies. These businesses would want to purchase the TREC to meet their Renewable Portfolio Standard (RPS). Importantly, prices can vary for your TREC depending on the type and size of your system. Discuss TRECs with your solar contractor as you fill out forms for your installation. Surely, TRECs are a great way to lower your solar energy costs.
Net Metering Policy
Next, New Jersey also offers a net metering policy to lower solar installation costs. With net metering, you can transfer your excess solar energy back to the grid. This is especially beneficial if your home receives direct sun exposure and you produce more energy than you need. When you transfer it back to the grid, other individuals can use the energy. This way, it doesn’t go to waste. Typically, you receive a discount to your monthly electric bill depending on the excess amount of energy your solar panels produced. Notably, this discount comes in the form of credits valued at the retail cost of your energy. Certainly, a NJ’s net metering policy is a great program to lower your monthly solar energy costs.
Federal Solar Investment Tax Credit (ITC)
In addition, the federal solar investment tax credit (ITC) program is another incentive program to reduce the cost of your NJ solar panel installation. You can also use this to lower your residential solar electric costs New York. Typically, your solar system would have a 26% federal tax rate. With the ITC incentive, you can save 26% of the cost of your entire system. This usually includes equipment, labor, and permits. For example, if your solar system installation costs $20,000, you can save $5,200 under this program. In 2021, federal tax credit is expected to decrease to 22%. Therefore, now is the best time to get the most savings on your solar energy system. Definitely, the federal solar investment tax credit is a great way to increase your financial savings when you install your NJ rooftop solar panels.
Property Tax Exemption
Moreover, the property tax exemption is another beneficial incentive program to lower your New Jersey solar panel installation cost. With this program, NJ residents do not have to pay any additional property taxes for their solar panels. In fact, installing solar panels typically increases the value of your home. On average NJ property values in New Jersey go up by over 9% with a solar installation. If you decide to sell your home in the future, this is just another way that your solar panel investments pay off in the long term. Absolutely, property tax exemptions are a great program that decreases your NJ rooftop solar panel cost.
Solar Energy Sales Tax Exemption
Furthermore, New Jersey offers a full sales tax exemption on solar energy. This means that you do not have to pay taxes on your solar energy equipment, devices, or systems. Importantly, your solar system needs to be approved by the Board of Public Utilities and Division of Energy upon installation. Mainly, this is to verify that your system was connected properly for electric use. To claim your sales tax exemption, you need to fill out a form with your solar contracting company. Be sure to ask them any questions you may have during the documentation phase of your solar panels installation Bergen County NJ. Of course, the solar energy tax exemption is perfect to reduce the price of switching to solar in NJ.
There are many incentive programs to lower the cost of solar panels in NJ. First, TRECs are a great way to offset your installation charges. Next, net metering offers NJ residents a program to sell excess energy back to the utility company for energy credits. In addition, the federal solar investment tax credit can lower your panel installation cost by up to 26%. Moreover, property tax exemptions also increase your savings. Furthermore, the sales tax exemption can also significantly reduce your costs. Enroll in these incentive programs to lower the cost of solar panels in NJ.