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Installing solar panels in New Jersey can help you save quite a bit on your electricity bills. And to save even more money, take advantage of solar incentives in New Jersey.
Key takeaways
- New Jersey residents can claim a 30% federal tax credit on the total cost of their solar system installation.
- Investor-owned utilities and electric cooperatives offer net metering. Annually, credits are applied to the utility bill at wholesale value for excess generation. The balance is then zeroed out, and a new cycle begins. Major utilities include Jersey Central Power & Light, Atlantic City Electric, Rockland Electric, and PSE&G. Interconnection fees vary based on system size.
- SuSI (Successor Solar Incentive) Program replaces the SREC Registration Program. Includes the Administratively Determined Incentive Program (for residential, small non-residential, and community solar) and the Competitive Solar Incentive Program (for large non-residential). Incentives are provided on a first-come, first-served basis for the Administratively Determined Incentive Program.
- The added value of a solar PV system is exempt from property taxes. Property value increases by approximately 4%. A certificate from the local assessor is required.
- Solar easements protect solar systems from shading. Voluntary agreements between property owners. Must be a written and legal contract.
Save 30% of your PV system cost with Federal Solar Tax Credit
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
U.S. Climate Bill: 30% Solar Tax Credit comes backSell excess electricity with net metering program
Solar laws in New Jersey allow customers of investor-owned utilities and electric cooperatives to join net metering programs that can help offset their future bills. Annually you will receive credit on your utility bill at wholesale value from any excess generation. Then, your balance will be zeroed out and a new cycle will begin.
There are four main electric utilities regulated by the New Jersey Board of Public Utilities, which offer net metering by state mandate:
Jersey Central Power & Light Atlantic City Electric Rockland Electric PSE&G
The terms providers offer are pretty similar to each other, including the application fees. The interconnection fee is not charged if your solar system size is not more than 10kW (otherwise, you’ll have to pay $50, plus $1/kW of system capacity or $100, plus $2/kW if the connection to the grid will require special equipment). Find contacts of the utilities above and their latest interconnection forms on the New Jersey Board of Public Utilities website.
Take my energy: What is net metering and how it worksSave with SuSI
The Successor Solar Incentive or SuSI Program replaces the SREC Registration Program and is made up of two sub-programs. The first one, Administratively Determined Incentive Program, provides incentives for net metered residential projects, net metered non-residential projects of 5 MW or less, and all community solar projects. The program accepts new registrations for each market segment on a first-come, first-served basis until the block is fully subscribed. The second one, Competitive Solar Incentive Program, provides competitively set incentives, as bid by developers, for non-residential projects with nameplate capacity over 5 MW.
Raise your property value but not your taxes
New Jersey residents invested in a solar energy system will not have to pay any additional property taxes on the added value they bring to their homes. New Jersey Revised Statutes ensure any new PV system installed will not be part of your property tax. However, any such home improvement will definitely make it about 4% more valuable on the property market, says the Zillow report. In order to claim the exemption, property owners must apply for a certificate from their local assessor which is able to reduce the assessed value of their property to what it would be without the renewable energy system.
4%
this is how much solar panels increase the value of your house
Protect your solar panels from shade with Solar Easements
A solar easement contract is a written agreement between you and another party, for example, your neighbor. This type of contract helps to ensure that your PV system will always have adequate sun exposure, protecting you from potential obstacles. It is voluntary, but can not be canceled unless a specific clause is included in the document. Once signed, it is tied to the land, not the owner. Any such agreement must be created in written form and must meet the general requirements for legal contracts.
One deal is a "tax credit." This means you pay less taxes. You can take some of the solar panel cost off what you owe the government. Sometimes, they might even give you money back.
Another deal is a "rebate." This is like getting cash back after you buy your solar panels. You might get a check, or they'll lower the price when you buy.
There's also a "feed-in tariff." If your panels make extra power, you can sell it to the power company and they pay you.
Why do they do this? Because solar is good. It cleans the air, makes jobs, and means we don't need to buy as much energy from other countries.
For you, these deals mean you save money. You pay less for solar, your electric bills go down, and you might even make money selling extra power. Solar incentives make it easier and cheaper to go solar, which helps you and the planet.
Check out solar panels near you!
Looking to build a home solar system? Check out solar panels that we have for sale in New Jersey
SHOP SOLAR PANELS
Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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