If you are considering installing solar panels on your New Jersey home, it’s important to know what rebates and incentives are available. Luckily, NJ has some of the best solar incentives in the United States. Thanks to these worthwhile incentives, the Garden State has installed enough solar energy to power more than a quarter of a million homes.
Let’s explore New Jersey solar rebates and incentives so that you can make an informed decision for your home.
New Jersey’s Net Metering Program
NJ’s net metering program compensates you for the energy your solar panels produce. When your panels produce excess energy, you can “sell” it back to the grid to accrue utility credits to be used when your system is not producing as much energy.
Solar Renewable Energy Certificates (SRECs)
When installed, your solar panels generate one SREC for every megawatt-hour of solar power produced. You can sell excess SRECs to utility companies to help them meet the New Jersey Renewable Portfolio Standard (RPS). The value of SRECs is based on supply and demand, but most people are able to make additional money by selling their SRECs to electrical suppliers.
Solar Sales Tax Exemption
To trim the costs for homeowners, all solar panel systems are exempted from NJ sales tax. Currently, the state’s sales tax rate is 7%, which means you can save 7% on all solar panel equipment.
Property Tax Exemption
Another tax break you may be eligible for is the property tax exemption for renewable energy systems. Homeowners in NJ who install a solar panel system are not required to pay additional property taxes as they would with other home improvements.
Federal Solar Tax Credit
The federal Investment Tax Credit (ITC) reduces the cost of a solar panel system by 30%. When you have a solar system installed, you can claim it on your next taxes. You’ll get a nice return when you file your taxes, which can be used to pay down the cost of your solar panel system. Keep in mind that the federal solar tax credit is only available for those who purchase their systems outright.
With incentives and rebates like this, it’s no wonder why New Jersey is one of the nation’s solar powerhouses! To learn more about installing a solar panel system and the money you can save – and earn! – contact Suntuity Solar today.