Many residential and commercial property owners across the United States are going “off the grid” and converting to renewable energy sources such as solar power for a host of environmental and financial reasons. But is solar worth it in NJ?
If you own a home or business in the Garden State and are considering installing a solar electric system, that’s likely to be your number-one question. The good news is that there is a variety of federal and state financial incentives available that can make the switch to solar in New Jersey even more affordable.
Here’s a breakdown:
- Solar Federal Tax Credit: If you’re a taxpayer in New Jersey or anywhere else in the U.S., you can receive a tax credit of 30 percent when purchasing a solar electric system. That means if you buy a system that costs $15,000, you can reduce your federal tax liability by $4,500 (after deducting the value of any applicable state rebates for the same year).
- New Jersey Net Metering: At the state level, New Jersey solar incentives rank among the best in the nation, as evidenced by the state’s net metering program. In short, if you produce more solar power than you use on a given day, you’ll receive credits you can apply to days when you generate less than what you consume — whenever you need them during the year. You can also sell your unused power back to the grid at the retail rate.
- SREC: New Jersey Solar Renewable Energy Certificates enable you to earn a credit for every megawatt hour of solar power your system produces. You can then sell these credits on New Jersey’s SREC market, the largest in the U.S., to utility companies that need to increase their renewable energy usage to comply with state guidelines. The value of the SRECs varies but has typically hovered around $200. Considering that the average NJ solar system produces approximately five megawatts annually, selling the credits can generate around $1,000 per year.
- State Tax Exemption: If you’ve lived in New Jersey for any length of time, you know the state levies a sales tax (currently 6.625 percent as of 2018) on most consumer goods. However, you will not have to pay this tax when purchasing a solar electric system. Depending on the system’s cost, this can result in a tax savings of $1,000 or more.
Contact MexLucky Energy to Learn More About New Jersey Solar Tax Credits and Incentives
MexLucky Energy can design and install an efficient, reliable solar energy system in your New Jersey home or business. With an office in Cherry Hill, we also have a comprehensive understanding of all the New Jersey solar incentives and how they apply to your unique situation. Contact us when you’re ready to make the switch to solar.