Are you interested in getting a solar incentive? New Jersey owns one of the best solar incentives in all the country. As a state new jersey has installed more than 1 Gigawatt of solar capacity. When talking about solar powerhouse, New Jersey comes on top. New Jersey solar incentives overtime has installed enough solar energy which can power over a million homes, that’s amazing. In the article we will be discussing solar incentives in New Jersey.
The New Jersey Solar Programs
The solar incentive in New Jersey is founded on two major programs, one is meant to reward you for the electricity you help produce while the other rewards you for the clean characteristics of the electricity produced.
New Jersey Net Metering
This a policy that helps save energy, the excess electricity can be sold back to the grid at a retail rate. And this is good since the retail rate of New Jersey metering system is higher than the wholesale rate that large plants charge from the electricity they sell to the utility. Your consumption and production can easily be balanced also with the ability to buy and sell, so instead of wasting the electricity, you can also sell and earn from it.
The Solar Renewable Energy Certificate
After installing your solar panel energy system, it does not produce electricity alone, for every megawatt hour of the solar power, your panel automatically generates one SREC. The SREC produced can be sold back at the market to utilities and its function is to ensure that the utilities meet the New Jersey RPS (Renewable Portfolio Standard).
The prices of these certificates vary with the demand and the supply. As of March 2016 homeowners could sell the one produced for almost $280, which corresponds to $1,400 if a 5 kilowatt system that generates 5MWh in a year is installed. The SREC program is an added advantage for a solar panel owner in New Jersey.
The New Jersey Solar Panel Tax Credits
To top the revenue streams up, a resident of New Jersey has been granted further tax to help reduce cost, the tax includes:
Solar sales tax exemption
After buying your home solar system, you will be exempted completely from any sales tax, based on the PV energy sales tax exemption. This will mean that you are spending 7% less on your solar equipment.
Exemption on property tax
Thanks to the exemption on property tax for renewable energy system, a New Jersey resident who invests in a solar energy will be released from paying any other additional tax on properties that are on the value that the solar panel is adding to their home.
The Federal solar tax credit
Coupled with the incentives and the other programs mentioned above, the federal government under the federal Investment Tax Credit (ITC) has further reduced the cost of the solar energy system by a whopping 30% and that will help you save a lot of money when you are filing your next federal income taxes.
This offer is not opened to all though, it is only applicable to those who bought their system out-rightly that is those that either made cash purchase or those who took solar loans and such ones must also have enough income for the tax credit to be relevant.
Before purchasing your best solar incentives in New Jersey?
It is important to consider several options before going ahead to buy one, it is good to know that you can compare solar quotes to know which one is more appropriate or pays you more, as this will help find the best local installer around you.
Before considering a solar incentive installer in New Jersey, it is good to ensure that he is:
- Well trained and skilled at handling the panel.
- That he is rich in experience.
- That he is well regarded in the society.
- That he is licensed, bonded and insured.
This will ensure that you get the best service after installing the system in your home and reduce future complains. It is good to note that you can pay for your New Jersey solar incentives by cash; you may also use loan payment system or purchasing the electricity without the panel using a power purchase agreement. Although all comes at a very different cost.
Author Bio : Jean Francia is a business development officer of a solar panel company in New Jersey. She is often visits several firms to see the market value of solar-related products.