New Jersey Solar Incentives
Updated November 18, 2011
New Jersey is well known for their nation-leading SREC program, which has brought a greater volume of residential installations online in a 4-year span than any other state besides California. Read about other incentives and
State Incentives
Renewable Portfolio Standard (SREC program)
Requirement: Approximately 4,400 MW of solar by 2026. SRECs have traded as high as $670 in the program's early years, and prices have dropped more recently in the $200s. Though prices are lower now since the installed systems are generating more SRECs than the market demands, the long-term lifespan of the market still looks strong for prospective rooftop solar owners. The current SACP is $658.
Sales Tax and Property Tax Exemption
Residential systems are not charged a sales tax, so the price you're quoted is what you pay. In addition, New Jersey will not tax the increase in property value that your new solar system provides.
Net-Metering
New Jersey has net-metering. Any additional electricity your solar system generates is credited to your next month’s bill and purchased by the utility at the end of the 12-month billing cycle.
Renewable Energy Manufacturing Incentive Program
Amount: $.05/watt DC - $.55/watt DC
Restrictions: Up to 10 kW, limited to utility territories that pay the renewable energy surcharge.
Other: Manufacturer of system must acquire at least 50% of system costsin New Jersey. Funding limited to $1m/year. In September 2009 New Jersey opened the Renewable Energy Manufacturing Incentive (REMI) program, which provides rebates for homeowners that install renewable energy system components manufactured in New Jersey. Maximum eligible rebate for each part are as follows:
-panels: $.25/watt DC
-inverters: $.15/watt DC
-racking: $.15/watt DC
Utility Incentives
Amount: 40-60% of system costs. 10-year term at a 6.5% interest rate.
Restrictions: N/A
Other: Loan may be repaid through cash payments or forging SRECs to PSE&G. Prices for SRECs vary with the market fluctuations, but currently have a base of $420/SREC. Variations are based on previous month's weighted averages for SREC prices.
Have a New Jersey solar expert give you a detailed quote so that you can find out how much you could save by going solar!
