New Jersey offers several solar programs designed to system installation costs. While extremely affordable in terms of long-range benefits, solar system installation can be a significant investment. Accessing New Jersey’s sustainable energy programs help to drastically reduce the costs associated with solar system installation. To support modern sustainability goals, New Jersey offers a variety of solar incentives, rebates, credits, and installations to help you finance system installation. If you are interested in how to save money on your renewable energy install, read on to learn about the top solar programs in NJ that offset system installation costs.
Federal Investment Tax Credit
The Federal Investment Tax Credit, or ITC, is one of the most popular solar incentives utilized in New Jersey. The ITC is a tax credit designed to offset the installation costs of northern NJ solar energy systems. As of 2020, the Federal Investment Tax Credit covers 26% of you solar system taxes. For New Jersey property owners considering solar installs, it is most tax efficient to plan your sustainable energy system soon. In 2021, the solar ITC reduces to 22%. In the following year 2022, they federal ITC drops to 10% for commercial property owners, and is no longer available for residential solar systems.
Property Tax Exemption
New Jersey property owners are exempt from any property tax associated with the installation of solar systems. Installing a solar system can drastically add to the value of your New Jersey property. Solar equipment is expensive, and functions as a valuable asset to your property energy production. At the same time, homes with solar systems installed are more desirable to move into when sold on the market. While these factors can drastically add to your property taxes, any increases related to solar systems are 100% tax exempt.
Sales Tax Exemption
Many New Jersey property owners take advantage of the sales tax exemptions associated with solar system installation. Solar systems can be a large investment for any NJ property owner. You must find efficient equipment, reliable solar hardware, and experienced NJ solar companies to help plan your system. Sales tax exemption helps you drastically reduce the costs associated with installing your solar system. At the same time, it allows you to increased freedom to choose efficient solar hardware and installation professionals without fearing the costs associated with taxes.
Solar Renewable Energy Credits (SRECs)
There are additionally New Jersey solar programs that offer solar renewable energy credits. Unlike other NJ programs, the SREC system is a performance based incentive. Whenever your system generates 1,000 kWh of energy, you earn a SREC. Eventually, you can report your accumulated SRECs to a central tracking authority. Once effectively reported and logged, these credits can be sold on the open market. The cash value you can claim on energy credits is dependent on market demand and current conditions. However, these are an excellent strategy to earn revenue for the first ten years of system ownership.
New Jersey Net Metering
Net metering is one of the most popular NJ solar programs to earn revenue for the performance of your system. Similar to the New Jersey SREC program, net metering is a performance-based initiative. Through the net metering program, NJ property owners can transfer excess energy back to the grid for profits. Many efficient solar systems produce more energy than they need. When energy is sent back to the grid, it can be used by other NJ residents, commercial businesses, or utilities. Through this, you can maximize your solar energy returns, while simultaneously offsetting the cost of your system. At the end of the month, you will receive a significant discount on electricity costs through the New Jersey net metering agreement. Even better, you will be compensated for full value of energy on the market.
There are several NJ solar panel incentives designed to help you finance system installation. One of the most widely known program is the Federal Investment Tax Credit. In terms of state programs, New Jersey offers two major solar tax exemptions. These are on the sales taxes associated with solar system, as well as the increase in property taxes stemming from your renewable energy install. New Jersey additionally offers two major performance-based initiative for owners of solar systems. With these, NJ property owners can claim returns through Solar Renewable Energy Credits, or SRECs. At the same time, you can claim solar returns through New Jersey’s net metering agreement. Consider the points mentioned above to learn about the top solar programs in NJ that offset system installation costs.