Solar Panels in New Jersey
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Over the past decade, New Jersey has seen the fifth-highest solar growth in the nation. With the costs of solar reaching parity with traditional energy sources, New Jersey has become a national leader in harnessing the sun.
- New Jersey is home to 560 solar companies, including 352 installers.
- New Jersey has consistently ranked in the top ten for most expensive electricity in the US.
New Jersey electric rates are 24% higher than the national average. Despite paying more, the money largely hasn’t been going towards clean energy. Utility-scale electricity generation is only 3.6% solar. Nevertheless, the residential solar market in New Jersey has been one of the top in the nation thanks to affordability and incentives. Both local and federal incentives remain in effect for the next few years. These programs will continue for a limited time due to higher-than-expected demand. Acting now can yield thousands in savings.
Why are so many New Jersey homeowners going solar?
New Jersey has consistently ranked in the top ten for most expensive electricity in the US. At the same time, it has remained in the top ten for installed solar energy. With cold winters and hot summers, electric bills are costly year-round. Rooftop solar provides a means of investing in independent energy that will pay for itself and provide independence from the costly utility grid. Incentives have slashed payback time in half, making the decision to go solar a no-brainer.
The facts
- The price of solar in New Jersey has declined by 64% since 2012.
- At current prices, a typical system may generate $1,400 in annual revenue from SRECs.
- The federal tax credit saves $4,500 for an average-sized system.
- 328,000 New Jersey homes are powered by solar.
Federal and state incentives in New Jersey
- The State of New Jersey offers net metering at the retail rate of electricity.
- New Jersey exempts homeowners from paying property taxes on the value added to a home by a solar installation.
For a limited time, taxpayers can receive a federal tax credit for 30% of solar system costs under the Federal Solar Tax Credit. The savings add up to roughly $4,500 for an average sized 5 kWh installation. The full 30% tax credit lasts through 2019, and the program will be phased out entirely by 2021. The Residential Energy Conservation Subsidy Exclusion assures that solar incentives remain exempt from taxes.
When there is abundant sunshine over your solar roof, your electric bill may be negative. The State of New Jersey offers net metering at the retail rate of electricity. When rooftop electricity production exceeds household usage, credits are awarded to the homeowner at the current electric rate. This means that you will be providing clean energy for your neighbors while reducing or eliminating your electric bill.
Solar Renewable Energy Credits (SRECs) have an uncertain future in New Jersey. For years, homeowners with a solar system have been able to sell SRECs to utility companies to help them meet renewable energy goals within their operating portfolio. One SREC is generated for every 1,000 kWh of clean energy generated on your roof. At current prices, a typical 5 kWh system may generate $1,400 in annual revenue from SRECs sold to the utility. Recently, the state legislature has considered eliminating this program in order to replace it with a more attractive incentive.
Those who go solar soon will likely be eligible for this program but stay tuned for updates.
Solar arrays are a sought-after home feature. They not only provide energy, they also add tens of thousands of dollars to the value of a home. Fortunately, the State of New Jersey offers a fantastic incentive that exempts homeowners from paying property taxes on the value added to a home by a solar installation. All that you need to do is contact your local assessor to obtain a certificate that maintains the prior valuation. To top off these generous incentives, the state of New Jersey exempts all sales tax on solar equipment.
The cost of solar panels in New Jersey
The price of solar in New Jersey has declined by 64% since 2012. A typical 5 kWh rooftop setup costs about $16,000. That’s before utilizing the federal tax credit and other incentives, which slash several thousand dollars off of the cost. If you finance with a loan, lease or power purchasing agreement, you will be able to go solar with little money down.
On average, electricity costs 13.74 cents/kWh in New Jersey, well above the national average of 10.41 cents/kWh. With utility bills easily totaling $150 each month, going solar is a smart move. Projections show that utility prices are steadily increasing, meaning that your savings will accumulate even faster to pay back what you spend on a solar system. If you commit and install before federal and state incentives run out, payback time could happen in five years. The typical lifespan of a solar array is roughly 20 years. That’s fifteen years of saving well over $100 per month. Homeowners should consider rooftop solar an investment, one that is guaranteed to yield thousands in savings.
The solar industry in New Jersey is driven by homeowners. Nearly two-thirds of installed solar capacity in the state is from residential and small-scale installations. The popularity of rooftop solar in New Jersey has led to bipartisan support for generous incentives that drastically reduce the time needed to recoup installation costs. Utility-scale solar is on the increase as well.
The New Jersey Board of Public Utilities has ruled that by 2021, 22.5% of the state’s electricity must be from renewable sources. Going a step further, they also proclaimed that by 2028, 4.1% of electricity sales must be from solar. These are exceptionally ambitious goals, but the current renewable production of 3.5% shows that there is a long way to go.
Thankfully, New Jersey is home to 560 solar companies, including 352 installers. With so many installers working to earn your business, competition continues to drive prices down to record lows.
Find a reputable installer in your area while you can still take advantage of all incentives.
The solar revolution is under way in New Jersey. The past decade has seen record growth in the solar sector, fueled by generous incentives. Now that equipment and installation prices are lower than ever, thousands of residents are making the upgrade each year. However, solar isn’t for everyone. Suitable space, shade, and rooftop orientation play a key role in determining if you can take full advantage of the sun. Before deciding, discuss technical and financial options with a trusted installer.
Our solar calculator shows how much you can expect to save based on your own electric bills and location. Get an estimate now by entering your latest electric bill. With rooftop solar, you will have decades of clean, reliable and affordable energy.
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