There are several steps to maximize your solar power return on investment (ROI) NJ. Importantly, solar ROI refers to the revenue your rooftop system generates throughout its lifespan. Typically, the higher your monthly savings, the quicker your initial installation investment pays for itself. Most residential solar panel owners can expect solar payback within 5 to 7 years. Once the initial cost of your system is paid back, your system can generate solar electricity for almost no cost. As a property owner in the market for solar, you need to know the proper steps to maximize your solar power returns. This way, you can achieve a faster payback time on your solar investment cost. Read on to learn about how to maximize your solar power ROI NJ.
Work With The Right Installers
First, it is essential to work with the right installers to increase your solar returns in NJ. When it comes to the solar market, bigger companies are not always better. Indeed, larger solar installation brands often charge more than your local installers. Usually, this is because they have higher overhead costs, such as advertisements. According to recent government reports, large solar installers are often $2,000 to $5,000 more expensive than smaller local companies. Additionally, local solar contractors are often more experienced with NJ installations. Thus, they may have more in-depth knowledge of solar energy tax incentives New York state and other areas. They’ll also know the best panel systems for the state’s climate and topography. Definitely, work with the right NJ installers to lower your solar installation cost and boost your returns.
Select High Quality Equipment
Next, you can select high quality solar equipment to increase your solar energy ROI NJ. Many solar contracting companies partner with reputable equipment providers to ensure high efficiency and low degradation rates. For example, you can look for a solar installer who sells LG solar panels for their rooftop systems. Notably, these panels offer an efficiency rating of about 18 to 22% depending on the specific model you choose. As one of the best ratings on the market, many LG panels are guaranteed to produce about 90% of their initial output at 25 years. With high efficiency and low degradation, companies who use they panels usually offer a 25-year warranty on these systems. Plus, you can minimize your monthly electric costs with higher energy production rates. Absolutely, select high quality equipment to boost your solar return on investment NJ.
Consider Your Payment Options
In addition, consider your payment options as you look to increase your solar revenue in New Jersey. Typically, you can buy rooftop solar Hunterdon County and other areas by leasing your panels, taking out a solar loan, or paying in cash. Notably, the United States government offers a federal solar investment tax credit that can decrease your system price by 26%. However, homeowners are only eligible for this if they take out a solar loan or pay in cash. Importantly, this credit is set to decrease to 22% in 2023. Therefore, to get the highest possible payback on your system, you should get your installation started as soon as possible. Certainly, consider your payment options to access the highest possible returns on your NJ rooftop solar power system.
Register For TRECs
Moreover, you should register for transition renewable energy certificates (TRECs) to increase your NJ solar returns. With this solar incentive program, you can receive certificates based on your solar production. Typically, residential solar systems receive $91.20 for each kWH they produce. For example, if your home solar system produced 7 MWh of solar energy each year, you would receive about $638 per year from TRECs. Over the course of the 15-year TREC program, you would receive over $9,500. Importantly, fixed TREC prices allow solar installers to accurately figure out your payback periods. Ask your solar installation company to help you register properly for this incentive. Surely, registering for TRECs is a great way to increase your solar returns in New Jersey.
Enroll In Net Metering
Furthermore, you can also boost your solar power ROI in NJ by enrolling in net metering. Net metering is a billing mechanism where you can earn credits for electricity you add to the grid. Notably, your rooftop system may generate more electricity than your home uses during daylight hours. If your home is net-metered, the electricity will run backwards to provide a credit against your consumed energy vs. your output. This way, you are only ever billed for your “net” energy use. Of course, your savings depend on your energy usage, system size, and efficiency. In short, enroll in net metering to maximize your solar energy ROI in NJ.
There are several steps to maximize your solar power ROI NJ. First, you need to work with the right energy efficiency contractors NJ who provide reasonable prices and know the region’s topography. Next, select high quality equipment with high efficiency and low degradation rates. In addition, consider your payment options to maximize your incentives. Moreover, register for TRECs get solar credit payback. Furthermore, enroll in net metering to get credits for excess solar energy. Follow these steps to maxijmize your solar power ROI NJ.