How New Jersey’s Solar Incentives Can Help Pay for your Solar Installation

As one of the country’s leaders in solar energy, New Jersey home and business owners are in a prime location to access state support for solar installation. New Jersey’s aggressive incentive and rebate programs have led to the installation of thousands of solar rooftops, including some of the largest in North America. Here, you can learn about the different types of incentives offered to help pay for your solar installation:

  • Sales tax exemptions
  • Rebate program
  • Energy credit program

Solar Renewable Energy Credits (SREC) Program

When a property owner installs a solar project in the state of New Jersey, they register with the SREC Program. Participants are given information about anticipated new solar capacity and future SREC pricing. After registration is complete and the solar installation is complete, there is paperwork that needs to be submitted, after which the project is assigned a New Jersey certification number and is able to generate SRECs. This may sound like a long process and may even be a little bit confusing. However, in April of 2016, over 5,300 registrations were submitted.

How SRECs work

Credits are earned for solar project owners each time the solar installation generates 1,000 kWh of electricity. The credits are placed into your (the solar owner) electronic account. These credits can be sold on a special tracking system, which provides you with revenue for the first fifteen years that you have a solar installation/solar panels, etc. The SRECs are purchased primarily by the utility company/electricity supplier. Simply put, electric companies buy the credits that you earn by having solar on your house or business. In February of 2016, 1,000 kWh (1 Megawatt) was sold for between $60 and $490. As you can see, the trade prices vary, even within a month. However, solar panels are earning New Jersey residents money, which is much better than traditional energy systems!

Solar Energy Tax Exemption

Another way that New Jersey’s solar incentives can help pay for your solar project is through the sales tax exemption. Any solar energy equipment that you purchase is state sales tax free. Any purchase is eligible, whether it is for commercial, residential, or industrial use. Categories of solar equipment that can be purchased tax free are:

  • Solar – Passive
  • Solar water heat
  • Solar space heat
  • Solar thermal electric
  • Solar thermal process heat
  • Solar photovoltaics
  • Solar pool heating

WARMAdvantage Program

The New Jersey WARMAdvantage Program gives rebates on furnaces, boilers and water heaters. All New Jersey residents are eligible for this program, but only for existing homes. New construction does not qualify for this incentive. Gas furnaces, boilers, and water heaters can qualify for incentives, as can Energy Star qualified solar domestic water heaters. Energy Star qualified oil furnaces and oil boilers qualify for an incentive as well.  Make sure you use a reputable company to install and maintain your system like Mercer Heat and Cool in Trenton, NJ.

Current rebates include:

  • Solar Hot Water Heater: $1,200
  • Heat Pump Water Heater: $500
  • Geothermal Heat Pump: $500
  • Heat Pump: $500
  • Gas Furnace: $250- $500
  • Gas Furnace (ENERGY STAR qualified): $500
  • Gas Boiler: $300
  • Gas Water Heater: $500
  • Solar Hot Water Heater: $1,200
  • Oil Furnace: $250
  • Oil Boiler: $300

With all of these New Jersey incentives, the cost of converting to solar in your home or business is a little easier on your wallet.

This entry was posted in Alternative Energy. Bookmark the permalink. Both comments and trackbacks are currently closed.