2022 NJ Solar Incentives, Tax Credits & Rebates
Did you know that New Jersey has some of the most attractive solar incentives in the country? As a result, it’s one of the few states that have more than one gigawatt in pure solar capacity — the Garden State is a positive solar powerhouse! Thanks to generous rebates and incentives, New Jersey has enough solar energy to provide clean power to more than 250,000 homes.
And if you want to be one of the many NJ homeowners looking to get in on the action — we’ve got a clear overview of the local tax credits and other advantages for solar right here!
Solar programs in New Jersey
The stunning success New Jersey has managed to pull off with solar can largely be attributed to two core solar programs — one of them compensates homeowners for the produced electricity, and the other rewards them for the clean nature of the produced energy.
Net metering in New Jersey
Most homeowners with solar panels produce a surplus of electricity at certain times — and at others, their home’s demand outpaces production. The net metering program in New Jersey allows them to even this out and get the most out of their panels.
In short, net metering lets solar homeowners sell surplus electricity to their local grid, for the retail rates of their utility provider. This is a win-win situation, seeing as these retail rates are significantly higher compared to the wholesale rates by which large power plants sell electricity to utility companies.
The ability to both sell and buy electricity allows homeowners to balance out the production and consumption — instead of wasting excess electricity needlessly.
TRECs — Transition Renewable Energy Certificates
In New Jersey, solar panels save you money in more ways than one. When you install a solar energy system, apart from producing electricity, it will generate TREC. For each megawatt-hour of clean energy produced by your panels, you will get a single TREC credit — which you can sell to utilities.
This helps them meet the Renewable Portfolio Standard in New Jersey. Also, you should know that TREC prices vary — they largely depend on what kind of solar system you’ve installed. People with ground-mounted or residential rooftop panels may earn up to $91.20 for each TREC! SEE IF YOU QUALIFY TODAY!
Solar tax credits in New Jersey
On top of the incentives we’ve described above, New Jersey also provides its residents with a couple of amazing tax breaks that further reduce the costs of solar panels.
Tax exemption for solar sales
Once you purchase a residential solar energy system, the sales tax exemption for PV energy will ensure that you’re completely, 100% exempt from all sales tax. On average, this means solar equipment prices are lower by 7 percent.
Property tax exemptions
On a similar note, New Jersey citizens that have their home value raised by solar installations are exempt from the corresponding increase of their property taxes.
Federal tax credit
All of the state solar incentives aside, there’s still the federal Investment Tax Credit that lowers the price of your solar systems by 26 percent, provided you buy them outright!