If you live in New Jersey and are considering installing solar panels on your home, now is a great time to do so. The state offers various incentives and programs to encourage the adoption of renewable energy sources like solar power. In addition to potential energy bill savings, New Jersey has set ambitious goals for renewable energy, with 35% of energy sales required to come from qualifying sources by 2025, increasing to 50% by 2030. The state offers tax incentives, a Solar Renewable Energy Certificate (SREC) market, net metering programs, and other incentives to make going solar more attractive. By installing solar panels, residents can reduce their carbon footprint and save money in the long run.
New Jersey offers several incentives for residents who choose to install solar panels on their homes. These incentives include a sales tax exemption on solar equipment, a property tax exemption for any increased home value after adding solar panels, and the ability to sell Solar Renewable Energy Certificates generated by your system. Additionally, the state offers net metering programs, which allow homeowners to receive credits on their energy bills for excess electricity returned to the grid. There is also a federal solar tax credit available, which allows taxpayers to reduce their income taxes by a percentage of the cost of their solar system. These incentives can add up to significant savings for residents looking to go solar.
CNET recently ranked states based on their residential solar policies, with New Jersey performing well in terms of accessibility and affordability of solar panel systems for residents. The state’s incentives and programs play a major role in making solar energy more accessible to the average homeowner. By evaluating New Jersey’s solar policies based on eight categories, CNET assigned the state a letter grade that reflects its overall performance in terms of residential solar installations. Residents can use the interactive map provided by CNET to compare solar incentives across all 50 states, including New Jersey, and determine how the state’s policies stack up against others.
In addition to state incentives, New Jersey offers local incentives for homeowners who install solar panels. These include the Successor Solar Incentive Program, which allows homeowners to sell Solar Renewable Energy Certificates generated by their solar systems. Participants in this program can earn $85 per megawatt hour produced, providing an additional source of income for residential solar arrays. The state also provides property tax exemptions for the increased home value resulting from solar panel installations, as well as sales tax exemptions on solar energy devices and systems for New Jersey residents.
New Jersey’s net metering program allows utility customers to receive full retail value credit on their bills for excess solar electricity returned to the grid. Customers enrolled in the program can use these credits to offset their energy bills throughout the year. At the end of a 12-month contract year, any remaining excess credits are paid out based on the market price, determined by the utility provider. This program allows homeowners to maximize the benefits of their solar systems and further reduce their energy costs.
Residents in New Jersey, particularly low- to moderate-income households, can also benefit from community solar projects, which enable participants to receive credits on their energy bills without installing a home solar system. By subscribing to community solar projects, participants can save 15% to 25% on their electricity bills. Currently, 6,000 households in New Jersey participate in community solar projects, with more projects expected to come online in the near future. These projects provide a way for more residents to access the cost savings of solar energy and contribute to the state’s renewable energy goals.
