As one of the fastest-growing solar markets in the nation, New Jersey is second only to California in the amount of PV solar installed. New Jersey has some of the best solar incentives including robust renewable energy credits and exemptions from sales and property taxes. When the NJ solar REC market was created in 2009, the spot price traded close to $700 per mWh. Now, NJ SRECs are trading around $130 for 2013 spot SRECs and $135 or so for 3-5 year contracts. Here you will find details about the New Jersey Solar Initiative and the rebates available for New Jersey homes and businesses.
New Jersey Solar Incentives Summary
Federal IRS Energy Tax Credit
30% of total solar installation value
Solar Power Installation Rebate
Solar Renewable Energy Credits SRECs
Varies; average prices ranged from $130 to $135 per MWh during 2013 with variations for individual contracts
Property Tax Exemption
100% of value added by renewable system
Sales Tax Exemption
100% exemption from state sales tax
State Tax Credit
Buy certified solar panel systems that qualify for New Jersey Rebates Save up to 60%; shop online to skip sales tax too. These home solar kits include every component needed for efficient solar installation including PV solar panels, grid-ready inverter, roof racking, wiring, hardware, step-by-step instructions and even permit-ready engineering diagrams. Pre-engineered home solar kits are delivered to your door in two to three weeks and can be installed in one or two days.
List of New Jersey Solar Renewable Energy Efficiency Programs
ENERGY STAR Homes Program
Energy Star Product Rebates
Home Performance with Energy Star Program
New Jersey Renewable Energy Incentive Program
New Jersey Natural Gas - SAVEGREEN Residential Rebate Program
New Jersey PSE&G Solar Loan Program
Public Service Electric and Gas Company (PSE&G) of New Jersey has a loan program for residential and non-residential solar projects. Recipients have the option of paying off the loan with the Solar Renewable Energy Certificates (SRECs) that the system produces over time. The value of these SRECs will be determined by the higher of the market price or the pre-agreed-upon floor price for each system. Floor prices for SRECs have ranged between $120 to $450 per SREC.
Solar loan applications consist of a description of the system, customer credit information, and a proposed SREC floor price bid. Interest rates for residential solar loans in New Jersey range from 6.5% to 11% per year. Loan amounts are calculated based on the net present value of the SRECs that the system is estimated to be able to produce over the course of the 10 year loan term at the bid SREC floor price.
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