There are several major factors that impact solar ROI Morristown NJ. Undoubtedly, a solar panel system is a significant investment for any homeowner. Of course, once a rooftop system is installed, property owners can start reducing their monthly electric bills. In time, the system will pay for itself and solar system owners can continue to earn revenue. As a homeowner, you need to understand which factors impact your solar power returns. This way, you can choose the best solar equipment and apply for the right solar panel tax credits to maximize your savings. Read on to learn about several major factors that impact solar ROI Morristown NJ.
First, your system cost is one major factor that impacts your solar returns in Morristown NJ. For example, a $20,000 system can save you $2,500 per year on energy bills. This means your solar system would pay for itself after 8 years. Commonly, this is referred to as the solar payback period. Importantly, the gross cost of installing solar panels usually depends on your energy needs. Indeed, if you have high electricity usage each month, you will likely require a larger system. Typically, these have a higher system cost. However, larger systems often have shorter payback periods. This is because you can reduce or eliminate high electric bills as soon as your panels are connected to the grid. Definitely, your Morristown NJ solar panel cost impacts your forecasted ROI.
Next, energy production levels also affect solar ROI in Morristown NJ. Typically, professional solar contractors calculate the size of your system after they complete a site evaluation. Once your know your system size, you can calculate the kWh of energy you can produce in a year. For example, a 6 kW solar system typically can produce 1,700 kWh of electricity per year. So, you would multiply 6 by 1,700. Then, you would expect your solar panels to make about 10,200 kWh per year. In this case, you can expect your solar system to gradually pay for itself if you use less than 10,200 kWh. On average, homeowners can expect to save about $1,400 per year on electric bills after switching to solar. With a higher energy production level, you can potentially increase your savings even more. Absolutely, energy production impacts how much ROI you can earn from your Morristown solar system.
Federal Investment Tax Credit
In addition, the federal investment tax credit (ITC) can increase your solar ROI in Morristown NJ. With this incentive program, you can save 26% on on the cost of your residential solar installation. To access these solar savings, you must own your solar panel system. Therefore, it is best to look into solar loans as you consider your financing options. Importantly, the solar ITC offers a 26% tax credit through 2022. In 2023, the incentive is scheduled to drop to 22%. After 2023, the residential credit drops to 0 and remains at 10% for commercial solar projects. To maximize your sustainable energy returns, enroll in the federal investment tax credit and other top NJ solar panel incentives.
New Jersey Incentives
Moreover, you can also increase your solar energy ROI Morristown with New Jersey state incentives. For example Transition Renewable Energy Certificates (TRECs) allow you to receive certificates based on megawatt-hour (MWh) of solar production. With this incentive, you could receive about $638 per year if your system product 7MWh of energy per year. Over the course of the 15-year TREC program, you could earn over $9,000 in additional savings. In addition, New Jersey exempts solar systems from sales tax. Under this policy, you can save 7% on all of your solar equipment. By decreasing your solar installation costs through incentive programs, your system can lower your solar payback time. Certainly, apply for rebates and incentives to boost your Morristown NJ solar ROI.
Furthermore, net metering is another major factor that impacts your Morristown solar ROI. Importantly, net metering refers to when a power company tracks the excess electricity your system product. Then, they give you a credit statement for it. Notably, solar systems often produce more than enough energy to meet your electric needs. Often, this happens when it is sunny or when homes are using less power. When you produce more than enough energy, you can lower your cost of electricity and improve your ROI. Undoubtedly, speak with your New Jersey solar installer about net metering to increase your energy ROI Morristown.
There are several major factors that impact solar ROI Morristown NJ. First, your system cost impacts when you can start generating returns. Next, energy production also impacts your solar ROI. In addition, you can enroll in the federal solar investment tax credit to boost your savings. Moreover, New Jersey incentives are another great way to increase your solar returns. Furthermore, net metering can also help you maximize your solar ROI. Consider these major factorst that impact solar ROI Morristown NJ.