Solar power Incentives
Federal and New Jersey Solar Power Incentives
Due to the dramatic decrease in solar installation and equipment costs, state and federal tax rebates that spurred the growth of solar power in New Jersey are no longer available. However, there are still several incentives offered by New Jersey and the federal government. And let’s not forget the savings you can expect to see in your energy bills every single month.
The SREC Registration Program
The Solar Renewable Energy Certificates (SREC) Registration Program is used to register the intent to install solar power systems in New Jersey. By registering your solar project in the SREC Registration Program, or SRP, before construction begins, you become eligible to earn SRECs.
When your solar power system generates 1,000 kilowatt-hours of electricity, you earn an SREC, which is reported to the SREC Tracking System and placed in your electronic account. SRECs can be sold on the SREC Tracking System, providing revenue for the first 15 years of the project’s life.
What happens when your solar power is working so well that your meter spins backwards?
Yes, it can happen. That means electricity is flowing from your home to the utility instead of from the utility to your home (when your meter spins forward). Net metering is an option available through New Jersey’s electric utilities that provides you with a credit for the excess energy produced to be used at times when your solar system is not generating power, i.e. at night.
New Jersey Sales Tax Exemption: Available to all New Jersey taxpayers, the state offers a full exemption from the 7% state sales tax for all equipment purchases directly associated with a solar electric system.
New Jersey Property Tax Exemption: Available to all New Jersey property taxpayers, the state offers a full exemption from an increase in property taxes due to the installation of a renewable energy system.
Investment Tax Credit: 30% of the purchase and installation cost of a qualifying system can be claimed by a business or homeowner when filing annual tax returns.
Federal Modified Accelerated Cost Recovery System (MACRS): Solar electric generating systems installed on commercial facilities are eligible for five-year accelerated depreciation.
How do I get started?
Whether you’re a homeowner or business owner, federal and New Jersey solar power incentives can be confusing and specific guidelines need to be followed, but we’re here to help. Contact Brite Idea Energy and let us help you make sure you understand all of your options before you get started.