One of the primary motivations for making the switch to solar energy is to save money, and reduced utility bills are not the only way you can lower your monthly living costs. To encourage homeowners to make the switch and reduce the strain on the electrical grid, the state of New Jersey offers numerous incentives for those who make the switch to a solar energy system. On this blog, we look at some of the available incentives to help you choose whether or not making the switch is right for you.
According to Solar Power Rocks, New Jersey ranks 14th in the nation on their rebate program, earning a “C” grade. (Only three states received an “A” in this category.) Many of the rebates in New Jersey are focused on new home construction. If you are building a brand new home and using solar energy to power it, you could receive a rebate through the New Jersey Clean Energy Residential New Construction Program, so long as your system meets ENERGY STAR standards.
New Jersey does not offer any personal tax credits for solar system installation at all, but both property tax and sales tax exemptions are granted to system owners. A property tax exemption means that when your home is appraised for property tax purposes, you cannot be charged more on your taxes, even though installing a solar panel system has significantly increased the value of your home. A sales tax exemption means that you don’t have to pay any sales tax on the installation of your system, which can be a huge chunk of change.
Renewable Portfolio Standard
Renewable Portfolio Standard laws are pieces of legislation that mandate that energy companies generate a certain percentage of their energy from renewable sources by a certain date, or face having to pay high fees. Utilities meet these standards by offering incentives to customers. New Jersey’s RPS law is extremely good for homeowners, as companies must make 22.5% of all energy from renewable sources by 2021, with a minimum of 4.5% of that renewable energy coming specifically from solar. The incentives from your energy company for going solar are probably fantastic; contact them to find out more about the specific details.
Net metering is the term for your utility company being required to track how much energy you feed back into the grid from your solar system compared to how much electricity from the grid you actually consume. New Jersey’s laws require that utility companies track this excess power feed-in and credit you towards your next bill at full retail rate. If you run a surplus for the entire year, your company will cut you a check at the end of the year at their “avoided-cost” (or “wholesale”) rate.
One of the biggest influencers over the return on investment is the cost of energy in a particular region. In fact, the more expensive the electricity is, the higher your return on investment will be, and the better your savings. New Jersey’s average electricity price is 16 cents per kilowatt-hour, which is approximately 20% higher than the national average. Expensive electricity means more savings on your utility bills, which means a faster time to pay off your system and less time before you’re generating tons of free electricity!
Thinking of making the switch to solar? At Sea Bright Solar, our team of friendly and knowledgeable representatives can help walk you through our state’s numerous solar incentive programs to help you get a clearer picture of just how much money you can save. We offer attractive financing and flexible purchasing options to help you get the system you want at a price you can afford. Start saving money and helping the environment by reducing your carbon footprint, speak with us today to find out if your home qualifies!Call Sea Bright Solar today at (732) 253-4052 to schedule your free analysis!