New Jersey Solar Rebates and Incentives
With Solar Community, You Save the Most on Your Solar System!
Now, more than ever before, going solar has been made both cost-effective and simple for homeowners. Cost-effectiveness is largely assisted by Government-initiated residential solar rebates and incentives, which are in place on a Federal, State and Local level. Simplicity is achieved with Solar Community, as we handle the entire paperwork process for you. By thoroughly researching and matching cost-cutting solar rebates and incentives on a case-by-case basis, we will work hard to ensure the lowest system cost possible for each individual customer. With Solar Community helming the whole procedure, it couldnâ€™t be easier for you!
Federal: Save With a Tax Credit
The same U.S. Federal Credit applies to every new system installation at a flat 30% of the full system price after installation, with no upper limit. Solar Community will provide you with the document necessary to add to your tax forms. The discount comes for you as a tax credit. All applicable photovoltaic systems must provide electricity for the residence and must meet applicable fire and electrical code requirements. For more information on the Federal Tax Credit, click here.
State: New Jersey Renewable Energy Incentives Program (REIP)
The Renewable Energy Incentive Program (REIP) provides rebates that reduce the upfront cost of installing renewable energy wind and sustainable biomass projects in New Jersey. Solar projects that are currently approved in the REIP can submit a Final As-Built package by reviewing the Solar Final As-Built section on the REIP Program Forms page. The New Jersey REIP is closed as of July 31, 2011. New Jersey REIP rebates total over $43 million since the programs inception in 2001.
Rebate levels vary depending upon technology, system size, and customer type. For more information about the New Jersey REIP, check out New Jersey Clean Energy Programâ€™s FAQ.
State: Solar Energy Sales Tax Exemption
New Jersey offers a full exemption from the state's sales tax (currently 7%) for all solar energy equipment. This exemption is available to all taxpayers. All major types solar energy equipment, including equipment for passive solar design, are considered eligible for the exemption as described by the New Jersey Division of Taxation Publication S&U-6 (Sales Tax Exemption Administration). To learn more about the Solar Energy Sales Tax Exemption, check out the State of New Jersey S&U-6 (Sales Tax Exemption Administration) page.
The credit is available to any owner or tenant of residential property. For a newly constructed home, the credit is available to the original owner/occupant. Joint owners of a residential property shall share any credit available to the property under this subsection in the same proportion as their ownership interest. Any excess credit amount may be carried over to the next 1-3 taxable years.
Local: Solar Renewable Energy Credits (SREC)
- Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Tribal Government, Fed. Government, Agricultural, Institutional
- Max Incentive: 2010-2011 compliance year: ~$675 per MWh (~$0.675 per kWh)
- Terms: Systems must be registered with NJ Board of Public Utilities; facilities qualify to generate SRECs for 15 years after the date of interconnection
- System Requirements: No specific limits, but system must be connected to distribution grid; behind-the-meter systems must be sized so that annual output does not exceed annual on-site load
- Install Requirements: Systems must be grid-connected to the "distribution system" in New Jersey.
- New Jersey's renewable portfolio standard (RPS): one of the most aggressive in the United States -- requires each electricity supplier/provider serving retail customers in the state to include in the electricity it sells 22.5% qualifying renewables by 2021. The New Jersey Board of Public Utilities (BPU) made extensive revisions to the RPS in April 2006, significantly increasing the required percentages of "Class I" and "Class II" renewable energy, as well as the required separate percentage of solar electricity (2.12% by 2021). The solar portion of the standard has since been revised again by A.B. 3520 enacted in January 2010 to have an ultimate goal of 5,316 gigawatt-hours (GWh) of solar generation in 2026.
- Solar Renewable Energy Certificates (SRECs): these represent the renewable attributes of solar generation, bundled in minimum denominations of one megawatt-hour (MWh) of production. New Jerseyâ€™s SREC program provides a means for SRECs to be created and verified, and allows electric suppliers to buy and retire these certificates in order to meet their solar RPS requirements. All electric suppliers must use the SREC program to demonstrate compliance with the RPS. New Jerseyâ€™s on-line marketplace for trading SRECs, launched in June 2004, is the first such operation in the world. The price of SRECs is determined primarily by their market availability and the price of the Solar Alternative Compliance Payment (SACP) for the state RPS. The SACP is effectively a ceiling on the value of SRECs because it is the per MWh payment that electricity suppliers must make if they fail to obtain enough SRECs to cover their RPS obligation.
Choose a state below for more information about how Solar Community can help you save on your solar PV system.
If you have any questions or want more information, you can contact us by email or just call us at 877.652.7674.