There are currently four solar incentives available to homeowners in New Jersey. The first solar incentive is the investment tax credit (ITC), which currently allows you to deduct 30 percent of the cost of your solar energy system from your taxes. The second incentive is the Solar Renewable Energy Certificate (SREC) program, followed by sales tax exemption and property tax exemption.
The investment tax credit (ITC) is one of the most popular incentives offered by both state and federal governments. It is designed to encourage businesses and homeowners to invest in renewable energy sources like solar panels. The ITC gives you a break on your taxes when you buy a solar panel system for your home or business.
The ITC allows you to deduct 30 percent of the cost of purchasing and installing a solar energy system from your taxes each year for up to ten years after installation. You can also sell SRECs as an additional source of income from your solar panels, which may offset some costs associated with owning them over time as well as provide extra money on top of what other incentives may bring in (like property tax exemptions). All solar programs in New Jersey are worth looking into with the help of a solar representative!
For the first three years of your solar installation, New Jersey residents can claim a tax credit worth 30% of the cost of their solar panels.
The Solar Investment Tax Credit is available to all residential and commercial property owners in New Jersey who install solar panels on their property.
This credit is available for systems that are placed on a home or business, but it cannot be used by renters or homeowners with leases that prevent the installation of solar panels. In addition, this credit cannot be used by businesses with less than 25 employees or those that do not utilize at least 75% of the energy they produce onsite.
The Solar Investment Tax Credit can also be claimed by certain organizations such as schools and religious institutions.
The SREC program helps promote renewable energy production across New Jersey by requiring utility companies like PSE&G (Public Service Electric & Gas Company).
The SREC program is a statewide regulation that requires all electric utilities to generate or purchase a certain percentage of their power from renewable energy sources. This requirement was originally established by the Legislature in 2004 and amended in 2009. The program has been very successful in promoting the development of renewable energy projects throughout New Jersey.
Since 2009, more than $2 billion has been spent on new solar installations across New Jersey, resulting in over 2,000 megawatts of installed capacity.
The price of an SREC varies depending on how many you buy at once and where you buy them. The most common way to buy SRECs is through a third-party broker such as Vivid Energy or Solar Chevrolet, which buys large quantities from solar energy producers and sells them in smaller packages to consumers.
In general, prices range from $0.70 per MWh for non-solar customers (who have already met their requirements for renewable energy generation) up to $1.00 per MWh for solar customers (who haven't met their requirements yet). If you're planning on buying solar panels soon but aren't sure whether or not it will save money—or even if it is worth it—you can use a solar calculator to get an estimate of how much it'll cost you and how much energy you'll generate.
As of January 1, 2020, the sales tax on solar energy systems has been permanently exempt from state sales tax in New Jersey.
This tax exemption applies not only to new installations but also to existing solar energy systems that have been upgraded or replaced.
Property tax exemptions for renewable energy systems are available in New Jersey.
The property tax exemption applies to solar electric, wind, geothermal and hydropower systems that have a capacity of 1 kW or greater. The tax exemption also includes solar water heating systems and fuel cells.
In order to qualify for the exemption, the system must be installed by a licensed contractor and meet certain criteria as defined by state law.
Depending on where you live in New Jersey and other details about your home and background, you may qualify for other programs with different advantages. We strongly recommend that you call our team at Go Solar New Jersey today to find out how we can help you and get you set up with the right program for you and your unique situation.