It’s smart to take your time when making a big investment, like installing residential solar panels. But waiting too long to switch to solar could cost you.
Solar is always financially beneficial, but how much you benefit depends heavily on when you install your solar panels. Keep reading to find out why now is the perfect time.
Electricity Rates Are Rising
Electricity is more expensive in New Jersey than it is in other parts of the country. As of March 2024, the average cost of electricity for residential customers in NJ was 18.04 cents per kWh—above the national average of 16.68 cents per kWh.
We already pay more for electricity, and rates are only going up. In May, PSE&G filed a request for a double-digit rate increase with the state Board of Public Utilities. If approved, residential customers could see a 16.59% increase in their electric bills!
Generating your own electricity is the only way to protect yourself against rising rates. Utilities generate most of the electricity they sell by burning fossil fuels, which means electricity rates are heavily dependent on the cost of fuel. Everything from supply and demand to geopolitical turmoil can influence fuel costs, leaving rates in a constant state of flux.
Solar panels, on the other hand, generate power using energy from the sun, which is always free and virtually limitless. When you install solar panels, you will no longer be impacted by volatile electricity prices. Your utility bill savings will add up quickly to cover the cost of your installation and every dollar you save from there is money earned.
Time-of-Use Billing Makes Electricity Even More Expensive
Time-of-use (TOU) rates are a billing structure that’s becoming increasingly popular among electricity providers. On a TOU plan, electricity rates are higher during on-peak hours, when demand for electricity is high. When demand goes down, rates do, too.
If your electricity provider switches to TOU billing, you’ll either have to change your electricity consumption habits (aka avoid using electricity when you need it most) or deal with a spike in your bills. Solar panels eliminate the issues altogether, especially when paired with battery storage. With a solar plus battery system, you can generate or use stored solar electricity during on-peak hours to avoid higher rates.
Incentives are Excellent…For Now
The government offers financial incentives to encourage homeowners to install solar panels and some of the best are available right now.
The federal solar tax credit, which has been available at varying rates since 2006, is the highest it has ever been. You can get 30% back when you install solar panels in 2024 with the solar tax credit, making it significantly more affordable to install solar panels for your home. The 30% tax credit won’t be available forever, but you have a while to claim it—it will stay at 30% until 2032.
Other solar incentives may not be as long-lived.
Solar net metering, for example, is an incentive program that allows homeowners to sell the excess solar power they generate to their utility. In exchange, you receive a credit on your bill. Right now, New Jersey offers one-to-one net metering, which means your utility buys power from you at the same rate they sell it to you for—every kWh you export to the grid is a kWh you can take from the grid.
But that could be changing soon.
New Jersey has announced proceedings to reform net metering and reduce the benefits for solar customers. One-to-one net metering is a huge reason why solar is so financially valuable in New Jersey. If you’ve been thinking about making the switch, go solar now so you can lock in the best net metering rate before it’s too late.
Storms are Getting Worse
Extreme weather has been all over the news lately and it’s only going to get worse. Severe storms and heatwaves combined with an aging electric grid and record-high demand for electricity make power outages almost inevitable.
Installing solar panels is the best way to prepare for an uncertain future because it puts you in direct control of one of your most important resources—electricity. With a solar panel and battery system, you won’t have to worry about power outages or fuel shortages impacting your electricity access because you’ll always be able to provide for yourself no matter what’s happening with the electric grid.
Looking for a New Jersey Solar Installer?
NJ Solar Power has been at the forefront of the solar industry in New Jersey for over two decades. We help our customers maximize the financial benefits of solar energy and make money off their investments. If you’re ready to take control of your electric bills and your energy future, give us a call. We offer free, no-obligation consultations and can help you decide whether solar panels are worth it for your home.