Why is NJ one of the Best States to Go Solar?
There are plenty of upsides and incentives for New Jersey homeowners to install solar panels. The Garden State has historically been known to be aggressive when installing solar power. By 2010 we were the second state (California was the first) to install over 100 MW in a year.
Tax Incentives & Rebates:
Net Metering: Allows property owners to sell their excess solar electricity back to the grid at a retail rate. Buying and selling electricity from the electric grid allows owners to balance consumption and production, without letting any overflow electricity go to waste.
Transition Renewable Energy Certificates (TRECs): Solar customers in New Jersey accrue TRECs for energy produced with their panels. For every megawatt-hour (1,000 kWh) of solar generation, you get one TREC. TRECS can be sold to utility companies for an average of $91.20 as of November of 2021.
Solar Renewable Energy Certificates (SRECs): Similar to TRECs, SRECs are a process that allows homeowners to earn cash every year for the energy their solar systems are producing. For every megawatt-hour you receive an SREC. These SRECs can then be sold on a market to utilities to help meet the New Jersey Renewable Portfolio Standard (RPS), which requires 35% of the energy in the state to come from renewables.
New Jersey Solar Tax Exemptions: Solar panels are exempt from New Jersey’s 7% sales tax, and they are also exempt from increased property taxes.
Federal Investment Tax Credit: There is also a 30% federal solar tax credit (ITC). This is a nationwide benefit that residents can also combine with New Jersey's solar incentives, improving your ROI. The credit is set to reduce to 26% in 2033 and 22% in 2034. By 2035 the credit will be phased out, unless Congress renews it.
Electricity Bill Savings: According to EcoWatch, “NJ residents stand to save around $109.54 per month on their electric bills or an annual average of $1,314.”
Home Resale Value Increase: According to an article Zillow posted in 2019, the average home will jump in value by around 4.1% when a solar system is installed. Depending on your home’s original value, that could be a pretty penny added to your wallet. However, this benefit is only afforded to solar customers who buy or finance solar panels, so it does not apply for solar leases or power purchase agreements.
Clean Energy: Public health can often be overlooked when thinking of solar panels, but did you know that the natural gas most of us use in our homes contains volatile organic compounds (VOCs)? VOCs are toxic, and known to be linked to cancer. Long term exposure to these compounds can trigger respiratory problems, depression, and decrease the quality of your health.
Hopefully, this article gives you peace of mind when deciding to go solar for your home or business. Getting solar installed is a great investment that provides exceptional savings. Having a reliable solar panel installation company to determine if your house or business is a good fit for solar will make your life easier down the road when you have questions or your solar system needs servicing.
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Written by Jessica Maliszewski | October 28, 2022
