The Truth About New Jersey Solar Incentives
Federal Solar Tax Credit
Extended renewable energy tax credits have been included in a $1.4 trillion federal spending package alongside a $900 billion COVID-19 virus relief spending bill. The solar investment tax credit (ITC), which was scheduled to drop to 26% in 2021, will now be raised to 30%! This means solar projects in all market segments (residential, commercial, industrial, utility-scale) that begin construction in 2022 until 2032 will be able to receive a tax credit at 30%. All markets will drop to a 26% tax credit in 2033 so don't delay!
Property Tax Exemption
Any value that your solar system adds to your property will not have to be paid in your property tax.
Solar Sales Tax Exemption
Due to the PV Energy Sales Tax Exemption, sales tax is not included with your solar purchase.
Successor Solar Incentive (SuSI) Program
For every megawatt-hour your solar system generates, you can collect an SREC-2 credit. SREC's values depend on the type of system installed. For example, residential systems will collect a fixed payment of $90 for 15 years. The amount of KWh you have affects the amount of credits you can collect for. When you sell your certificates for the SREC's you have received, you can collect a huge payout each year.
Net Metering
Our program is designed to optimize the returns on your renewable energy investments. It allows you to receive full retail credit for every kWh of electricity your system generates throughout the year. At the end of each annual cycle, you'll receive credits on your utility bill at the wholesale electricity rate for any surplus energy produced.
In instances where your renewable energy system generates more electricity than you consume, you'll earn credits at the retail value for the excess energy. For instance, during sunny days with moderate temperatures, your solar panel system might produce more electricity than you need. In such cases, your utility meter will register backward movement, granting you credits for the surplus energy. These credits remain available for your use as required.
Under our net metering scheme, your electric meter tracks forward when electricity flows from the utility to your home, and backward when it flows from your home to the utility. Any excess KWhs accumulated over time are reconciled annually, ensuring a fair exchange.
Click Here To See What Tax Benefits You Qualify For
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