New Jersey is one of the most densely-populated states in the US, but it is also the home of many different New Jersey solar incentive programs. If you live in the country and are thinking of installing solar panels on your property, you need to know what these programs are. These New Jersey’s SREC Program will help you overcome the cost of solar panels which in turn help you master the relatively high cost of residential electricity.
Solar Renewable Energy Credits
The top solar incentive program on offer in New Jersey will be the solar renewable energy credits or SREC. The SREC will be generated when your solar panels start to produce electricity. Each megawatt-hour of energy that is generated from your solar panels will equal a single credit. On average, a homeowner with solar panels will be able to produce around six credits per year.
While it is essential that you know how to earn the credits, you also need to know what happens to them. Each of the loans that you generate through this program will be worth a monetary amount which can be found on the NJ SREC marketplace. The weighted average price for these credits is around $200, but this does vary from month to month, and you need to be aware of this.
What this means for you as the solar panel owner is that you will be able to make around $200 for every megawatt-hour your panels generate. As you can produce around six credits each year, you will be getting about $1200 from the incentive program. Of course, there are some limitations to the program that you also need to be aware.
The first limitation is the fact that you can only earn SREC for the first ten years of owning the solar panel system. While this is just a fraction of the lifespan of these systems, you will make an average of $12000 from the program. The other limitation is the fact that the program will soon close to new applications. The exact date has not yet been confirmed, but the solar panel community of New Jersey is aware that this will happen in the coming years.
The net metering program is one that many states have, and New Jersey is no different. This program requires the utility companies to compensate any homeowner who feeds electricity into the grid. The price paid for the energy will be the retail price.
To benefit from this program, your home will still need to be connected to the utility grid. It is recommended that you enter the net metering program with your utility provider because the retail rates for your energy will be competitive when compared to the rates power plants are paid. This program will also allow you to get the most out of your solar array.
Most homeowners will produce more energy than their home can use through their solar system. Instead of letting it go to waste, you can make a profit from it. When you enter this program, you will need to have a special meter installed on your property.
The meter that you need will be electric and can spin forward and backward. As you use electricity from the utility grid, the meter will spin forward. However, when your solar system feeds energy back into the network, the meter will spin backward.
The Solar Federal Investment Tax Credit
One of the reasons why many people do not have solar panels is the large upfront cost of purchasing and installing the system. To help with this, New Jersey is part of the federal investment tax credit for solar energy. This incentive program can help to lower the upfront costs of your solar system by up to 30%.
It is important to note that this tax credit system can only be used for the installation of solar panels on a residential property owned by the taxpayer. If the federal tax credit will exceed the tax liability, you can carry the excess amount into the next taxable year. This ensures that you can get the most of the tax credit system.
You need to be aware of the fact that this incentive will only apply to homeowners who have purchased their solar system using cash or a loan purchase. While this is a very generous solar incentive program, it is limited, and the limitations will increase in the coming years. After 2019, the incentive will decrease through to 2021, and you need to be aware of this.
New Jersey Property Tax Exemption
This incentive program exempts solar systems that are installed to offset or meet electricity needs from local property tax. This means that you will not be required to pay additional property tax on the value added to the property by the solar panels. This is not something that is automatically provided and you will need to apply for this incentive program.
To do so, you will have to apply for a certificate from the local assessor. This will reduce the assessed value of the property to what it would be without the solar panels. It is important to note that there might be some limitations to this program and you will need to speak with the local assessor regarding this.
New Jersey may not be the sunniest state in the US, but it is home to some of the most generous solar incentive programs. There are some New Jersey solar incentive programs which can be used by homeowners to reduce the upfront costs of their system installation and to make the most of the power provided by the system. Of course, you will need to be aware of the limitations of each of the New Jersey solar incentive programs and the ending dates.