There are several solar rebates in New Jersey to help property owners recoup their clean energy expenses. NJ has consistently been one of the most progressive states for solar energy financing. Throughout the state, there are a number of comprehensive NJ solar panel incentives, tax credits, financing programs, leasing agreements, and clean energy rebates to take advantage of. By participating in these programs, you can largely recoup your renewable energy expenses and potentially even earn a profit. Before you plan your solar energy installation, there are several rebate programs to remain aware of. Read on to learn about the essential solar rebates in NJ to recoup your clean energy expenses.
Transition Renewable Energy Certificates (TRECs)
Transition Renewable Energy Certificates, or TRECs, are one of the newest and most popular NJ solar rebates to recoup your system purchase and installation expenses. The TREC program replaced New Jersey’s old Solar Renewable Energy Credits, or SREC program. Using TRECs, NJ solar installations are able to claim a full, or factor of an energy certificate for every megawatt-hour of clean energy their system produces. Once you have accumulated a number of Transition Renewable Energy Certificates, they can be sold to utility companies for profit. Currently, NJ has set the price of a single TREC at $152 over the next fifteen years. However, you may only qualify for a factor of a TREC for every MWh based on the size, capacity, and type of your renewable energy system. Residential installations for example, are only able to earn a factor of 0.6 for every TREC they receive. Once redeemed, a residential TREC is essentially worth $91.20.
Net Metering Program
New Jersey’s net metering program is one of the most popular and efficient ways to recoup your clean energy expenses. Similar to Transition Renewable Energy Certificates, the NJ net metering program is a performance-based incentive. Participating in the net metering program allows you to maximize solar ROI on your clean energy investment. The program allows you to sell excess energy back to the electricity grid at full retail value. Participating in this program, you can ensure that you claim maximum returns on your stored solar energy. At the same time, you can guarantee that no sustainable energy your system produces is ever wasted. To effectively recoup your sustainable energy investment through NJ solar rebates, be sure to participate in New Jersey’s net metering program.
Federal Solar Investment Tax Credit
The Federal Solar Investment Tax Credit, or ITC, is one of the easiest and most popular ways to recoup your clean energy expenses. The ITC credit is issued by the US Federal Government for residential and commercial solar installations. As of 2020, the ITC provides a tax credit for up to 26% of your clean energy system. Unfortunately, the Federal Solar Investment Tax Credit drops to 22% in 2021. If you are planning a solar energy system in New Jersey, be sure to arrange your installation before the ITC credit reduces. Take advantage of the Federal Solar Investment Tax Credit in order to effectively recoup your clean energy expenses through NJ solar rebates.
Solar Sales Tax Exemption
New Jersey solar rebates fully exempt your purchase of clean energy purchase from all state sales tax. The PV solar energy sales tax exemption ensures that all solar purchases are fully tax exempt. Taking advantage of this valuable NJ solar rebate immediately reduces the cost of your renewable energy installation by over six-percent. If you are wondering if solar is worth it in NJ, analyze your potential savings through tax exemptions. To greatly offset your renewable energy installation costs, be sure to take full advantage of the NJ state solar sales tax exemption.
Property Increase Tax Exemption
New Jersey solar energy systems are fully exempt from additional increases on your property taxes. Solar powered systems are an extremely valuable and desirable investment. Often, installing solar panels on your NJ property leads to significant increases in your property’s appraised value. Luckily, a solar installation will have no impact on the price you are required to pay on increases in property taxes. Any forms of solar hardware that add value to your property are fully exempt from additional tax increases thanks to NJ solar rebates.
There are several solar rebates in NJ available to help you offset your clean energy purchase, installation, and maintenance expenses. Work with knowledgeable solar energy companies in NJ to ensure you qualify for the maximum number of financing programs. One of the most popular options is the NJ TREC program. Many property owners additionally take advantage of the Federal Investment Tax Credit, or ITC. At the same time, be sure to participate in the NJ net metering program to refund excess energy. Furthermore, installing a solar energy system in New Jersey, your purchase is 100% exempt from state sales taxes, or additional increases in your property taxes. Consider the points mentioned above to learn about the essential solar rebates in NJ to recoup your clean energy expenses.