Why Go Solar in the State of New Jersey?
New Jersey is one of the top ten solar states in the US. New Jersey renewable energy sectors have flourished during the last decades, harnessing carbon free energy and creating solar jobs. Using different incentives, New Jersey aims to make solar more attractive and affordable. The incentives include Federal Solar Tax Credit, net metering, New Jersey solar Renewable Energy Credits (SREC), and Property tax exemption. Solar panel system in New Jersey can make you energy independent. Moreover, you can save you a lot of cash over its life time. The state has made a dedicated effort to make investing in solar an easy choice for energy-conscious consumers.
|National solar ranking||7th (10th in 2020)|
|Solar Installed (MW)||3,592.8|
Percentage of State’s Electricity from Solar
|Total Solar Investment in State||$10.8 billion|
|Prices have fallen||45% over the last 5 years|
Growth Projection and Ranking
|2,096 MW over the next 5 years (ranks 15th)|
|Number Of Installations||133,849|
Is going solar worth in New Jersey?
The solar panel system installation in New Jersey ranges from $11,942 to $16,158. The cost per watt ($/W) ranges from $2.39 to $3.23. The New Jersey solar panel user can enjoy the return on investment in 5.87 years. Many users prefer cash purchase pay for solar, which delivers a long-term value to the customers. The users can opt for different financing options to afford installations, including solar leases, PPAs, and solar loans.
What solar panels should I install in New Jersey?
The user can customize their solar panels according to their needs and demands. They can choose the batteries and aesthetic of the installation. The customizability increases the importance of understanding the various factors that can impact the solar panel’s performance. The solar panel with warranties and premium performance is more expensive. On the other hand, an in-depth analysis is required if high-efficiency solar panels and warranties can fit your needs.
How much energy can users generate in New Jersey?
Your solar panel performance depends on the quality and quantity of sunlight directly hitting your solar panel. New Jersey isn’t one of the sunniest states in the U.S. On average, New Jersey has 206 sunny days annually. The state is known for its rain, sleet, hail that falls to the ground, and snow. The other factors which can have an impact on the New Jersey solar panel system include the following:
- Panel orientation
- Panel angle
Rebates and incentives
The federal Investment Tax Credit has been one of the most impactful and reliable incentives for solar across the U.S. the user can deduct 26% of the total system cost from his/her federal taxes. This good incentive lasts until the end of 2022, and from 2023 the tax credit amount steps will decrease to 22%. The federal ITC is eliminated for residential solar installations after 2023, but commercial solar energy system owners can still deduct 10% of a retail solar system cost from their taxes beyond 2023. Apart from the federal ITC, New Jersey offer additional incentives for going solar, including the following:
Federal Solar Investment Tax Credit
26% federal solar tax credit is available for home solar systems installed by December 31, 2022
New Jersey Solar Renewable Energy Credits (SREC)
Varies depending on market value
Property Tax Exemption
Property tax exemption on added home value from solar system
New Jersey solar panel system net metering
The New Jersey investor-owned utilities offer customer net metering, which allows the user to credit the excess energy produced in the bill at the retail rate of electricity. The average electricity price in New Jersey is 6.18 ¢/kWh, which is 27% higher than the national average, which above the national average. Therefore, the homeowner can enjoy a lot on their electricity bills.
New Jersey SREC program
New Jersey issues solar renewable energy certificate market (SREC), based on the state’s commitment to switch to solar energy soon completely. The solar panels can benefit from SREC directly. The solar produces SREC as they harness electricity with every megawatt-hour (MWh). In addition to that, Prices for these certificates vary with supply and demand.
Solar Sales Tax Exemption
When a New Jersey resident enjoys 100% exemption from any sales tax, they purchase a home solar system with the PV energy sales tax exemption. This translates into spending 7% less on solar equipment.
If you are living in New Jersey, it is the right time to get solar. You can harness solar energy if the solar panels are getting enough sunlight. Moreover, the panels are placed in a direction where PVs can receive sunlight quickly and continuously. The number of hours the sun shines in the region is also critical. Furthermore, the state is going the extra mile to offer attractions and incentives to promote solar energy. If you want to go solar in New Jersey, wait no more. We, with our team of skilled experts, can make the process easy and convenient. Wait no more, and lets us serve you with excellence.