Solar Panel Incentives in NY, CT, & NJ
Property taxes add significant costs to your property. Many consumers fear purchasing a solar power energy system will skyrocket these costs even more. Infinity Energy is here to explain the impact of solar power installation on your property taxes in NJ, NY, and CT. We’ll help you understand that installing solar panels will help you save money and increase your property value. Congress passed an extension of the ITC in December 2020 to provide a 26% tax credit for solar systems installed in 2020-2022 and 22% for systems installed in 2023. We’ll explain how incentives and rebates may impact your bottom line.
NJ & NY Incentives and Credits
Solar incentives, rewards, and credits will typically offset any rise in property taxes. A solar panel system installation through the solar Investment Tax Credit (ITC) allows you to deduct 26% of the cost from your taxes. The incentives don’t stop there. In New Jersey, you can expect:
- Net Metering Incentives –The state of NJ requires net metering and compensates for additional solar-generated electricity from homes at the retail rate.
- Solar Renewable Energy Credits (SRECs) –New Jersey’s utility companies have a goal that renewable sources should generate 50% of their electricity by 2030.
- Tax Exemptions –New Jersey doesn’t require homeowners to pay the state-wide 6.625% sales tax when installing your system.
New York incentives and rewards include:
- Net Metering Alternative –New York uses the VDER Value Stack program that focuses on fairly compensating solar producers for their energy. VDER Value Stack considers your capacity, energy, environmental, demand reduction value (DRV), and locational system relief value (LSRV).
- Tax Credits –New York offers incentives and grants. Homeowners get access to the NY State Solar Energy System Equipment Tax Credit, which is for installing solar systems and offers a 25% tax credit and maxes out at $5,000. Others can take advantage of the NY-Sun Megawatt (MW) Block Program that offers up to $1,000/kw if you qualify.
- Tax Exemptions –Solar installation services and raised property taxes from adding a solar system are waived in New York.
Connecticut’s top solar tax credits and rebates include:
- Net Metering –Connecticut’s net metering policy credits homeowners for the additional electricity your system produces and lets you use the credits when the system doesn’t generate enough power.
- Energy Efficiency Loan Program– The government provides some homeowners with a solar system loan of up to $40,000 for 5-12 years at low-interest rates.
- Tax Exemptions –The Sales and Use Tax Exemption for Solar and Geothermal Systems keeps residents from paying taxes on purchasing a solar system. The Property Tax Exemption for Renewable Energy Systems ensures homeowners never pay taxes on the increased value of their residence.
The Future of The Tax Deduction
We understand many homeowners wonder about the future of the solar tax break. The federal ITC extension is granted for anyone installing a solar system through 2022. In 2023, the deduction lowers to 22% for residential and commercial installations. It’s best to act quickly to ensure you get the tax deductions you deserve for going green. Homeowners can also apply for additional incentives to your federal investment tax credit for increased savings. If you ever have questions about your specific deductions, we are here to answer them.
Contact Infinity Energy Today
Your property taxes shouldn’t affect your pocketbook. We’ll do all we can at Infinity Energy to ensure you’re happy with the installation of your solar system and that it pays off. Check out the NY, NJ, or CT solar incentives for more information. You can also view our solar calculator for your specific savings. Infinity Energy serves New York and New Jersey residents in various areas, such as Bergen County, Essex County, Middlesex County, Passaic County, Union County, Morris County, Rockland County, and Orange County. Contact us today!