With an abundance of sunshine and generous incentives, New Jersey is one of the best states in the country for going solar. There are a number of compelling incentives for homeowners looking to install a solar PV system including:
Federal Tax Credit
Homeowners who install solar energy systems are eligible for a 30% federal tax credit on the total installation, including both parts and labor. Note that unlike other home energy retrofit projects such as HVAC and windows, there is no maximum limit on the size of the tax credit, and this credit can be rolled into future tax years. We will ensure your system is eligible and certified for the tax credit.
In New Jersey, electric distribution companies (ie: JCP&L, PSEG) and third party electric suppliers are required to credit customers with grid-tied solar systems or other renewable energy generators for each kilowatt-hour (kWh) produced on an annual basis. As a homeowner, any excess power that you generate is fed back into the grid and credited at retail rates on your following month’s bill.
All electric distribution companies and electricity suppliers in New Jersey offer net metering to their residential customers, providing that the homeowner does not exceed 2 MW and does not exceed the homeowner’s annual electric consumption. Before receiving the benefits of net metering, the New Jersey Board of Public Utilities requires that an interconnection agreement be in place between customers and their electric distribution companies. We will ensure your system is setup and certified for net metering, and also walk you through the necessary paperwork for the interconnection agreement.
Solar Renewable Energy Certificates (SRECs)
SRECs are tradeable certificates that represent the clean energy benefits of electricity generated from solar energy systems and provide another way for homeowners to recover their investment. Once your solar installation project passes inspection and the interconnectivity agreement is in place, you will begin to earn SRECs.
Each time a system generates 1,000 kWh of electricity during the first 15 years of production, an SREC is earned. While the value of SRECs is set on the free market and varies according to demand, they typically sell for several hundred dollars per credit. We will setup an SREC management plan for your needs, either purchasing the credits from you or allowing you to manage them on your own.