There are several financial savings solar energy contractors Morris County NJ offer. Undoubtedly, making the switch to rooftop solar power system is a significant financial investment for any homeowner. Indeed, many potential buyers are deterred due to high installation costs. Often, this is because residents do not realize how much they can increase their electric bills savings. Additionally, they may not know about New Jersey’s incentive programs and rebates designed to decrease solar installation expenses. As a property owner in the market for solar, you need to know about the different savings options available to you. Read on to learn about the most lucrative financial savings solar energy contractors Morris County NJ offer.
Federal Investment Tax Credit
First, you can increase your solar saving Morris County NJ with the federal investment tax credit (ITC). With this program, anyone paying federal income tax can earn a 26% tax credit on the cost of your solar installation. Importantly, a tax credit is a dollar-for-dollar reduction in your total income tax liability. For example, a $15,000 system, you may be eligible for a $3,600 credit on your taxes. In addition, you can apply this incentive to your solar panels as well as your wiring, inverters, racking, and other system equipment. To qualify, you typically must purchase your solar panels with a solar loan. Property owners who install their system with a lease or solar PPA are not eligible. Since the ITC will decline to 22% in 2023 under the solar itc extension, now is a great time to take advantage of this Morris County financial savings option.
Next, Morris County solar energy providers also offer the transitional renewable energy credits (TRECs) to NJ residents. With this program, home rooftop solar system owners own these credits and can sell them back to the utilities. This is a great benefit for the electric company, as they can meet their renewable energy targets. Typically, TRECs average to about $90 for every megawatt-hour (MWh) of solar produced over 15 years. For the average 7.2 kW system, home owners can usually save 9 MWh per year. This is equal to about $830 in annual savings. Over the 15-year credit timespan, the average solar system owner can save over $12,000. Definitely, TRECs are a great financial savings option for Morris County NJ solar system owners.
In addition, Morris County solar installation providers also offer net metering. Under this policy, you can sell excess electricity back to the grid at its retail rate. Notably, NJ’s net metering rate is considerably higher than the wholesale rate larger power plants receive for electricity they sell to the utility company. Moreover, buying and selling electricity from the grid allows you to balance your energy production with your consumption. Importantly, the net metering policy prevents you from letting your excess electricity production go to waste. Typically, net metering savings depend on your rooftop solar solutions NY and NJ energy efficiency, as well as your utility company’s retail rate. For homeowners who produce more renewable energy than they consume, net metering is a lucrative Morris County NJ financial savings option.
Solar Investment Property Tax Exemption
Moreover, Morris County New Jersey solar contractors also offer solar investment property tax exemption. This incentive program allows you to install a rooftop solar system without increasing your property taxes. To claim your tax exemption, you need to apply for a certificate from your local assessor. Once implemented, you can reduce the assessed value of your property to what it would be without your solar panel system. Typically, these exemptions take effect a year after the certificate is granted. Ideally, look for a local NJ solar installer who is familiar with the application process. Experience solar contractors can often assist you filling out the applications and forms properly. Absolutely, the solar investment tax exemption is a great opportunity for Morris County residents to boost their solar savings.
Solar System Sales Tax Exemption
Furthermore, Morris County NJ solar installation professionals also offer the solar system sales tax exemption. With this financial savings option, you can avoid New Jersey’s 7% sales tax on all of your solar energy equipment. Notably, this savings option is usually available to all tax payers. Additionally, it includes all major types of solar equipment, including panels, racking, and inverters. This exemption does not apply to devices that are required, regardless of your energy source. To claim your savings, you need to fill out and submit Form ST-14, the Exempt Use Certificate. Fortunately, your solar panel companies Orange County and other areas can assist you filling this out. Some may even offer to fill it out for you. Certainly, this financial savings option is the perfect way for Morris County NJ solar system owners to increase their savings.
There are several financial savings solar energy contractors Morris County NJ offer. First, home solar system owners can apply for the solar investment tax credit to earn 26% savings. Next, with TRECs, you can potentially save over $12,000 per year. In addition, net metering is a great savings option for residents who produce more renewable energy than they consume. Moreover, the solar investment property tax exemption is another way to boost your savings. Furthermore, solar systems are also exempt from sales tax in New Jersey, when homeowners complete the proper application process. Obtain these financial savings from your local solar energy contractors Morris County NJ.