New Jersey still has some of the best incentives on solar power equipment of any US state but it won’t be forever. See what you can do now to benefit.
It’s no accident that over 80,000 homes and buildings in New Jersey have installed solar power systems. It’s not just that residents of New Jersey are more interested in green energy than people living in other parts of the US. New Jersey offers some of the best tax credits for solar power equipment.
Investing in solar power can lead to utility savings of $1,000 a year. This is only one of the incentives that is converting more residents to solar. The continued reduction of individual carbon footprints to combat climate change is also a great motivator.
If you’re interested in investing in solar power, whether to power your own home or to sell back to the grid, New Jersey is one of the best states for it. Here are some of the latest incentives for buying solar power equipment.
1. Solar Tax Credit
If you’re paying high federal taxes, you should consider investing in some solar equipment to counterbalance the bill you’ll owe at the end of the year. Your equipment could come at a 30% discount with the federal tax credit.
You have a couple of years left to file for this credit. It’s set to decline following 2019 and then will be gone by 2022. Since your equipment will last you a decade or more, buy now to get the most out of this credit.
2. New Jersey Net Metering
For New Jersey residents who manage to generate their own electricity, they could receive full retail credits for each kilowatt-hour generated.
If you produce more than you need, you’ll get credits applied to your bill. This is a great incentive to not only generate your own power but also to lower your home’s overall usage.
Your meter will spin forward when you’re using electricity and run backward when you’re sending electricity back into the grid. Every year, the credits you’ve earned will be paid back to you.
3. Solar Renewable Energy Certificates
The solar energy that you generate will also create a credit that ends up on New Jersey’s SREC market. Companies that need to use more clean energy will buy into the market and that money will come back to you.
One megawatt hour has sold for as high as $200 in recent years. This could be a great way to get your equipment to pay for itself.
4. Sales Tax Exemption
Solar equipment purchased in New Jersey is currently exempt from sales tax. Depending on how many properties you have, you could be saving big. This exemption is currently good for any taxpayer in New Jersey.
Solar Power Equipment Is A Great Investment
With all of the great incentives possible when you invest in solar equipment, there’s never been a better time to invest. With the volatility of our national energy conversation, you should set up your system as soon as possible to start taking advantage of these credits.
If you’re looking for the right equipment for your system, contact us for more information.