There are several affordable NJ solar financing options for your residential property. Selecting the appropriate financing option can help you maximize your solar ROI, while simultaneously helping them work towards your sustainability goals. Even as a significant investment, the right solar financing programs can help you minimize upfront costs, while still allowing you to access valuable renewable energy benefits. With affordable, manageable upfront costs, you can begin saving on electricity costs with your NJ rooftop solar energy system as soon as possible. Read on to learn about the essential affordable solar financing options NJ for your residential property.
Power Purchase Agreements
Power Purchase Agreements, or PPAs, are an excellent solar financing option in New Jersey to help you pay for your renewable energy system. Utilizing a PPA, solar installation companies arrange the design, permitting, financing, and installation of sustainable clean energy systems. Once the system is installed, NJ solar installation professionals sell the power generated to host customers at a fixed rate. In most cases, the fixed rate offered by solar energy companies is far more affordable than those offered by your utility company. Power Purchase Agreements are often arranged in periods of ten to twenty-five years. During the contractual agreement period, the solar contractor is responsible for the consistent monitoring and maintenance of the installed system. Consider a PPA agreement as an essential solar financing option in NJ for your residential installation.
Solar Loan
Solar loans are one of the most popular residential solar financing options in New Jersey. Comprehensive solar loans are financially affordable and widely available throughout New Jersey. Many NJ residents obtain affordable solar leases from commercial banks, alternate lending institutions, credit unions, utility companies, or state financing programs. By obtaining a solar loan, you are often able to maintain your eligibility for state tax exemptions, incentives, and other performance based initiatives, like NJ TRECs. At the same time, a solar loan allows you outright ownership of your renewable energy system. With this independent ownership, you can utilize and manage your solar system based on how you want to.
NJ Performance Based Initiatives
State performance-based initiatives are an excellent solar financing option in NJ to help finance your renewable energy investment. After your system is installed, comprehensive performance based incentives financially reward you for the energy that your system produces. In New Jersey, the two major performance initiatives to take advantage of. First, the NJ net metering program is an excellent solution to redistribute excess energy produced back to the grid for a profit. At the same time, you can utilize NJ TRECs in order to reclaim cash value for every megawatt-hour of solar energy that you produce. Taking full advantage of these performance-based incentives can help you easily finance your solar system, and reduce your expected payback period throughout system ownership.
Solar Leasing Agreement
A solar leasing agreement is one of the most popular and flexible solar financing options in New Jersey for your residential property. NJ solar lease agreements allow you to make monthly, often fixed payments in exchange for ownership, and utilization of energy produced from your rooftop renewable energy system. By purchasing a solar lease agreement, you can largely reduced the upfront costs to purchasing your solar system. At the same time, by leasing solar panels, installation companies are traditionally responsible for the maintenance, monitoring, and repair of system components. Consider an efficient solar leasing contract as a comprehensive, affordable New Jersey solar financing option.
Cash Purchase
Finally, you can always choose to make a cash purchase for your New Jersey solar financing options. While this option may cost the most upfront, it is likely that an upfront purchase will maximize your solar ROI for years to come. If you do choose to pay for your system upfront, there are many tax credits, exemptions, and incentives to help you reduce the cost of your investment. In New Jersey, you can take advantage of state sales tax exemption, as well as tax exemptions on increases on your property taxes. At the same time, you can take advantage of the Federal Investment Tax Credit to reduce your required system expenses. As of 2020, the Federal ITC offers you a tax credit of 26% on your residential solar installation. As you consider the various solar financing options in North Jersey, be sure to consider making an upfront, cash payment.
There are several comprehensive solar financing options in NJ to help you pay for your renewable energy system. Solar loans are one of the most popular residential solar financing options in New Jersey. A solar leasing agreement is one of the most popular and flexible ways to finance your system. At the same time, Power Purchase Agreements, or PPAs, are an excellent solar financing option to help you pay for your renewable energy system. Moreover, there are several performance-based incentives that help you easily finance your solar system and reduce your expected payback period throughout system ownership. Finally, you can always choose to make a cash purchase on your NJ solar system. Consider the points mentioned above to learn about the essential affordable solar financing options NJ for your residential property.
