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New Jersey’s Authority on Solar Energy (732) 269-0308

If you are looking into solar, you already know the federal government offers plenty of incentives. Did you know that many state governments also offer incentive programs? In fact, one of the top questions we get from potential customers is whether New Jersey has any state solar incentives.

New Jersey is one of the top states for solar. That surprises many people. We expect sunshine heavy states like Arizona, California, or Florida to top the list. However, the reasoning is simple. New Jersey’s electricity rates are high. In fact, they are approximately 1/3 higher than the average state electricity rate. That means that New Jersey homeowners get more bang for their buck when they install a solar system.

Still, the cost of solar can seem prohibitive. That is why the federal government offers such significant incentives. States also offer incentive programs. New Jersey has three programs to help make solar more affordable: Solar Renewable Energy Credits (SRECs), the Solar Investment Property Tax Exemption, and the Solar Panel Systems Sales Tax Exemption.

The SREC is a program through the New Jersey Board of Public Utilities (BPU). The BPU’s Clean Energy Program lets people earn SRECs. You can get an SREC for every kilowatt-hour of solar energy that your system creates.

The Solar Investment Property Tax Exemption offers an additional benefit, which lasts well beyond the year of purchase. Under this program, you can install a solar panel system in your home without increasing your property taxes. So, you get the benefit of added value to your home for resale, since solar systems increase your retail value. However, you do not get saddled with an additional tax burden. In New Jersey, this means a non-taxed increase in your home’s value that is normally close to 10%.

The Solar Panel System Sales Tax Exemption is another benefit. Generally, home improvements are subject to sales tax. However, if you buy a new home solar energy system, it is tax exempt. You pay no state sales tax on the purchase. Sales tax would normally be 6.625%, so the savings can be substantial.

As you can see, New Jersey offers a variety of state solar incentives to make solar more affordable. You get three tiers of savings. First, you get the savings on state sales tax. Then, you get the credit for the energy that you create. Finally, you get a lasting benefit of not paying for the increase in the value of your home that is due to the tax credits. Combine these programs with the federal tax incentives and you will probably discover that solar is more affordable than you think.

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NJ Solar has been the Solar Power Professionals for over 20 years! Today, the state of New Jersey is a national leader in solar energy, but it wasn’t always that way. New Jersey Solar Power LLC has been there since the beginning of the solar energy revolution in NJ.

With awards for Environmental Excellence and the New Jersey Clean Energy Project of the Year, we’ve built a reputation worthy of being your partner in clean, efficient solar energy. Contact us today to get free customized pricing that’s tailored to your home or business.