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New Jersey Solar Rebates and Installation Incentives

The Garden State has a pretty awesome Solar Incentive program, making PV solar installation affordable for many residents and small businesses. The program in New Jersey (aka “The NJ Renewable Energy Incentive Program”) is comprised of several components which differ somewhat from traditional models (in states such as California and Massachusetts).

  • Open market system of “Solar Renewable Energy Credits” (SRECs):

    • Utilities are required to increase the amount of renewable energy they use each year. In order to do this, they buy SREC credits from individual producers of renewable energy (you).

    • 1,000kWh (kilowatt hours) of solar energy = 1 Solar Renewable Energy Credit (1kW of PV paneling will create, on average 1,000kWh per year, providing you with one SREC. The average home solar system is 2-4kW, so that would be 2-4 SRECs per year... confusing, I know).

    • These SRECs can be traded on an open public exchange, where their value will change from year to year. In 2010, one SREC was valued at $693, so a homeowner with a 4kW system could have received approximately $2,772 for their credits.

  • Net metering: Local utilities are required to participate in a net-metering program, providing you with credits for any unused electricity you generate during a given billing period. Those credits can be used toward money owed on subsequent bills during the 12-month fiscal year. The credits have no cash value.

  • Property tax exemption: This is exactly as it sounds – your property taxes will not go up a dime as a result of installing solar.

  • Solar PV Cash Rebate: You will receive a cash rebate for each watt of solar paneling installed. This amount is decreasing every year, so it's important to act fast. In 2010 the rate was 75¢/watt. For a 4kW system this would total $3,000.

  • Federal Solar Tax Rebate: Uncle Sam allows you to claim up to 30% of the total installation cost on your federal taxes.

See Also: What is Photovoltaic Solar Power? ; How to Choose a Solar Installer? ; Is Solar Right for Me? ; What is a Certified NABCEP Solar Installer? ; Solar FAQ

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