5 Commercial Solar Incentives NJ To Save On Business Installations

There are several commercial solar incentives NJ to save money on your business installation. Notably, New Jersey ranks in the top ten states in the United States for solar energy. By 2030, about 50% of state electricity is expected to come from clean, renewable energy sources. Of course, a commercial solar system is a significant investment decision. As a business owner, you need to know which commercial solar incentives are available to reduce your installation costs. This way, you can better understand how your solar system pays for itself in the long-run. Read on to discover the best commercial solar incentives NJ to save money on your business installation.

Federal Investment Tax Credit

First, the federal investment tax credit (ITC) is a great commercial incentive program NJ to reduce your installation costs. Under the ITC, commercial business properties can receive a 26% tax credit for their installation. Notably, customer-site businesses and large-scale utility solar farms are eligible for these solar savings. You just need to purchase your solar system through a cash payment or loan financing. Importantly, leased systems are not eligible for the federal ITC. In addition, your solar project must commence construction before the end of 2022 to get the largest cost reduction. In 2023, the credit lowers to 22%. By 2024, commercial businesses can only receive a 10% credit. Therefore, start your commercial solar project NJ as soon as you can to maximize your cost savings. Certainly, the ITC is a great program to lower the cost of solar panels in NJ.

MACRS Depreciation Incentive

Next, the MACRS depreciation incentive is another New Jersey commercial incentive program to lower your solar system installation costs. Under federal tax code, commercial renewable energy systems can qualify for a 5-year Modified Accelerated Cost-Recovery System (MACRS) depreciation schedule. Importantly, the exact savings for this program vary depending on your business tax rate. Typically, you can offset your solar energy project costs by about 25%. Additionally, the Tax Cuts and Job Acts of 2017 increased the bonus depreciation to 100% for property acquired and serviced before January 1, 2023. Talk to your solar provider to see if you meet the eligibility requirements for this NJ commercial solar incentive.

Transition Renewable Energy Certificates

In addition, transition renewable energy certificates (TRECs) are another NJ business assistance program to save money on your solar installation. A TREC is a certificate that you generate every time your solar system generates one MWh of energy. Notably, the price per TREC varies depending on the type of solar installation. For example, businesses that install photovoltaic panel systems on their rooftop or carport receive $152 per MWh. On the other hand, you earn about $91 per MWh if you install your system on the ground. Importantly, the New Jersey Board of Public Utilities is looking to replace NJ TRECs with the Solar Successor Program. If this new program goes into place, you might only save $85 per MWh. Thus, talk to your local solar panel contractors to save with this commercial NJ incentive program.

What is the Successor Solar Incentive (SuSI) Program in New Jersey?

The Successor Solar Incentive (SuSI) program is a key initiative in New Jersey aimed at promoting solar energy adoption. It offers Renewable Energy Certificates (RECs) with predetermined values for a span of 15 years. These values are contingent upon the type and scale of the solar project.

For instance:

• Businesses that install large, net-metered solar systems on rooftops or carports are eligible to receive $90 per megawatt-hour (MWh).
• Conversely, those opting for ground-mounted solar systems under similar conditions receive a lesser amount of $80 per MWh.

The SuSI program is structured to support solar investments until the designated capacity is fully allocated. This makes it advantageous for businesses to embark on their solar projects sooner rather than later to capitalize on the available funding.

Solar Energy Sales Tax Exemption

Moreover, commercial businesses in NJ can also save with the Solar Energy Sales Tax Exemption. Currently, the Garden State offers a full exemption from the state’s sales tax. With this incentive, commercial businesses can save 7% on their solar system. Notably, all types of solar energy equipment are eligible for the exemption as long as they are approved by the Board of Public Utilities and Division of Energy. To claim your exemption, you simply need to fill out and submit Form ST-4 to the seller. Indeed, this can serve as a substitute for your sales tax payment. If you have any questions about your equipment eligibility or need assistance filling out your form, talk to your solar installer. Definitely, the Solar Energy Sales Tax Exemption is a great commercial incentive for NJ to save on your installation.

In addition to the sales tax benefits, New Jersey offers other enticing incentives:

• Property Tax Exemption: Enjoy a 100% exemption from local property taxes on your solar installation. This means your property tax bill won’t increase due to the added value of solar panels.
• Assessment of Farmland Hosting Renewable Energy Systems: If you have agricultural land, solar installations are assessed as farmland. This ensures no change in taxes, allowing farmers to benefit from renewable energy without additional tax burdens.

These incentives, alongside the sales tax exemption, make New Jersey an attractive state for solar investments. By capitalizing on these benefits, businesses and property owners can significantly reduce their installation costs and enhance their return on investment. If you’re considering going solar, now is the time to explore these opportunities and maximize your savings.

Net Metering

Furthermore, net metering is another commercial incentive program NJ to save money on your renewable energy investment. With the net metering program, you can receive credit on your utility bill for any excess electricity your system generates. Typically, this credit is priced at the wholesale value of your electricity production. For example, on a sunny day, your business might use more electricity than it generates. When your annual electric production exceeds your annual usage, your utility meter spins backwards to credit you for this energy. Then, your business can use these credits the following year as needed. In short, net metering is one of the best solar panel incentives NJ for commercial businesses.

There are several commercial solar incentives NJ to save money on your business installation. First, you can save up to 26% on your installation through the federal investment tax credit. Next, the MACRS Depreciation Incentive can also offset your solar energy project costs. In addition, TRECs offer commercial companies a lucrative system to earn money back for their electric power. Moreover, you can also save about 7% on your solar components through the Solar Sales Tax Exemption. Furthermore, net metering offers a great way to earn credits for your unused electricity. Apply for these commercial solar incentives NJ to save money on your business installation.

How Can Property Owners Participate in New Jersey’s Community Solar Programs?

Property owners in New Jersey have a great opportunity to engage with community solar programs. Here’s how they can get involved:

1. Lease or Sell Land: Owners can lease or sell their unused land to solar developers. This is a practical option as these developers install and maintain solar farms, transforming underutilized spaces into renewable energy hubs. Importantly, the previous use of the area doesn’t limit participation, opening possibilities for various types of properties.
2. Partner with Solar Developers: Teaming up with experienced solar companies can simplify the process. These professionals manage everything from site assessment to installation and maintenance. This partnership ensures a smooth transition and allows property owners to benefit from a steed income from lease agreements or profits from land sales.
3. Contribute to Clean Energy Goals: By participating, property owners support New Jersey’s clean energy initiatives. This contribution not only fosters environmental sustainability but also increases the value and appeal of your property in a rapidly evolving market focused on green practices.

By taking these steps, property owners can play a significant role in advancing clean energy while benefiting financially.

What is the Brownfields Redevelopment Incentive Program?

The Brownfields Redevelopment Incentive Program is designed to spur environmental and economic rejuvenation by offering substantial financial aid for eligible development projects. It aims to transform underused or contaminated sites, referred to as “brownfields,” into productive community assets.

Key Benefits of the Program

• Generous Tax Credits: Projects under the program can receive a tax credit of up to 40%, making it financially enticing to participate. This credit can reach a maximum of $4 million per project.
• Annual Funding Cap: Each year, up to $50 million in credits is available, ensuring a significant collective investment in diverse projects.
• Competitive Application Process: Funding is awarded based on a competitive process, encouraging high-quality proposals and ensuring that resources are allocated to projects that promise meaningful impact.

This initiative is available until 2027, offering a structured opportunity for developers to contribute to environmental restoration while benefiting economically.

What is the Community Solar Energy Pilot Program in New Jersey and Who Can It Benefit?

The Community Solar Energy Pilot Program in New Jersey is an innovative initiative designed to expand access to solar energy. It allows residents and businesses to virtually connect to a solar installation situated within their local utility service area. This presents a significant opportunity for those who typically face barriers to entering the solar market, such as renters, individuals with shaded properties, or those without control over their roofs.

Who Benefits?

1. Renters and Non-Property Owners:
   • Individuals who rent their homes or do not own their roof space can now take advantage of solar energy savings without needing to physically install panels on their premises.
2. Property Owners:
   • Owners of land or buildings have the option to lease or sell their property to solar developers. This arrangement allows for the development and maintenance of community solar farms, which can generate supplementary income.
3. Community and Environment:
   • The program emphasizes sustainability by incentivizing the conversion of underutilized or degraded areas. These can include landfills, brownfields, and even old coal mines, enhancing the environment while providing a renewable energy source.

By offering solutions tailored to different needs, this program democratizes solar energy access, providing environmental and economic benefits across New Jersey, regardless of prior land use.