By Theresa Ficazzola
New Jersey residents can take advantage of several solar panel incentives that can reduce the overall cost of a solar panel system for your home. Below is a brief overview of the 2023 solar panel incentives for New Jersey.
- Drastically reduce your electric bill.
- Cash in on federal tax benefits.
- Generate SRECs (Solar Renewable Energy Certificates), a unique way to actually get paid for producing solar energy.
- Do something amazing for the environment.
Save Money on Your Electric Bill
Install rooftop solar panels in New Jersey and gain control of your electric bill. How? You’ll be protected from future utility rate increases from PSE&G or JCP&L. Electric bills, especially in the Northeast, have been on the rise for quite some time. In New Jersey, PSE&G and JCP&L electric rates are expected to increase on June 1 by 3.3% and 4.8%, respectively.
Since we all have different size homes, electric uses and solar panel systems, your savings will vary. However, on average, New Jersey homeowners can typically save between 30%-90% of their monthly PSE&G or JCP&L utility bill.
Plus, if you qualify, you can install a complete solar panel system on your home for $0 money down.
And, by choosing SI Solar as your rooftop solar panel installation expert, you’ll get a 25-year warranty on your solar panel system. This gives you peace of mind for years to come. Plus, you’ll be supporting a locally owned and operated small business.
Federal Tax Benefits
Federal Investment Tax Credit: As a result of the Inflation Reduction Act, the solar tax credit for a residential solar system is now 30%. What exactly does this mean for a NJ homeowner interested in solar panels? You get a dollar for dollar credit off your federal income taxes the year your solar panels are installed. So, if your system cost $10,000, you would get $3,000 back from the federal government just for going solar. Just complete Form 5695, which is used to calculate your residential energy credit, when you do your taxes. It must be submitted alongside Form 1040 with your federal income tax return.
Sales Tax Exemption: Unlike most things you purchase, you don’t pay any sales tax on any solar energy system equipment and supplies.
Since everyone’s personal situation is different and to ensure you receive all the tax benefits you’re entitled to, you should speak with your tax advisor regarding all your solar panel tax credits as they apply to you.
Benefits of SRECs
SRECs are only available to New Jersey residents and are good for 15 years! As you generate your own electricity with your very own custom built solar panel system, you earn SRECs, which can be sold back to your utility company for cash.
Essentially, SRECs are earned until you sell them. For every 1000 kwh of energy you produce through your residential solar system, you earn 1 SREC worth $85. A typical solar system may generate 7-10 SRECs per year (however, everyone’s situation is different, so results may vary). So, for example, if you generate 10 SRECs this year, you would get $850 for the year. For commercial businesses, 1 SREC is worth $110.
Environmental Benefits
According to the SEIA (Solar Energy Industries Association), “Deploying more solar energy will sharply reduce the carbon, sulfur and mercury pollution that come from burning fossil fuels, saving approximately 60,000 American lives each year.”
