Solar Installation Financial Incentives
There has never been a better time to go solar. Significant financial incentives are available from the State of New Jersey and Federal governments to encourage investment in solar energy. Utilizing strong state rebates and the most generous Renewable Energy Investment Tax Credit in a generation, homeowners can now install a solar system that pay for themselves in as few as 4-5 years.
Investment Tax Credit
Residential solar systems are now eligible to receive a 30% Investment Tax Credit (ITC). The Economic Stabilization Act of 2008 extended the Renewable Energy ITC until 2016, and included relief from previous Alternative Minimum Tax restrictions.
State of NJ Solar Initiative (REIP) Overview
The Renewable Energy Incentive Program (REIP) provides rebates that reduce the upfront cost of installing renewable energy systems like solar, wind, and sustainable biomass projects. The REIP is part of New Jersey’s efforts to reach itsEnergy Master Plan goals of striving to use 30 percent of electricity from renewable sources by 2020. The program includesfinancial incentives to solar energy system owners who install qualified clean energy generation systems in New Jersey
The State of New Jersey will pay you the prevailing rebate incentive toward the total cost of a residential system at (2009 Rate) $1.75 a watt installed (Audit-energy star program).
NJ Solar Property Tax Exemption
The value of a solar system is added to the appraised value of your property and does not increase your property taxes. Solar energy systems is one of the few home improvements that can be justified in terms of return on invested dollar. This tax exemption extends for the life of the solar system. The National Appraisal Institute notes that the value added to a home by a solar PV system is 20 times the value of the electricity costs saved in the first year. Due to the significant State rebate, the value of your solar system is often greater than the cost of purchase from day one.
New Jersey Net Metering
Net Energy Metering Law allows solar PV system owners to bank excess electricity back to the utility company at retail rates, for a credit to owners’ accounts. This is literally saving for a rainy day: When a solar system generates more electricity than is consumed by the home, such as a sunny afternoon, the extra electricity flows back the utility grid, and the utility company credits the system owner mostly at high peak rates. On rainy days or at night, the solar customer uses these credits to purchase electricity from the utility grid, mostly at lower off peak rates.
Solar Renewable Energy Certificate (credits)
SREC stands for Solar Renewable Energy certificate and is a tradable certificate that represents all the clean energy benefits of electricity generated from a solar electric system. Each time a solar electric system generates 1000kWh (1MWh) of electricity, an SREC is issued which can then be sold or traded separately from the power. This makes it easy for individuals and businesses to finance and invest in clean, emission free solar power.