New Jersey solar rebates and tax credits calculator

Summary of New Jersey solar incentives 2024

When you hear "New Jersey" you probably don't think of bright sunny skies. So you might be surprised to hear that New Jersey is one of the country's best places to install a solar system. The combination of high electricity rates, statewide solar incentives, the 30% federal tax credit, and an excellent net metering policy make solar a worthwhile investment for almost all homeowners. 

But it doesn't stop there. New Jersey's Board of Public Utilities is creating an energy storage incentive to make installing solar batteries more affordable. Plus, the state is expanding community solar programs to make solar more accessible to low-income households. That commitment to helping folks go solar is what keeps New Jersey as one of the top states to go solar. 

Federal solar investment tax credit

The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in New Jersey

If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.

Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.

The federal tax credit falls to 26% starting in 2033.

Net energy metering in New Jersey

With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.

Net metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume and make sure you get credit for the surplus.

New Jersey's net metering rules ensure the utility company tracks your excess power generation and credits it to your next bill at the full retail rate. If you run a surplus for an entire year, the utility will cut you a check for the excess at the company's avoided-cost (wholesale) rate. All investor-owned utilities, certain competitive municipal utilities, and electric cooperatives provide net metering. 

This net metering policy greatly benefits you as a New Jersey solar owner, letting you save big on your utility bills.

New Jersey solar rebates

The New Jersey SuSI program

New Jersey is a state that has placed strict requirements on utility companies to include renewable energy and, specifically home solar in its energy mix. The state has achieved such strong results in transitioning to clean energy through the issuance and sale of solar renewable energy certificates (SRECs). In New Jersey, they are referred to as SREC-IIs. Clean energy generators like home solar owners own these credits and can sell them to the utilities so the companies can meet their renewable energy targets. 

Any solar system installed after August 28, 2021, can participate in the "Successor Solar Incentive program," or SuSI for short.  

Under the SuSI program, every time a solar system produces one megawatt-hour of electricity, an SREC-II is generated. SREC-IIs are worth $90 each. The average 6 kW system would generate enough SREC-IIs to earn roughly $7,110 over the program's 15-year term. 

Sales and property tax exemptions for solar in New Jersey

When the property tax assessor comes knockin' at your front door, by law, they are not allowed to increase your property taxes in New Jersey because you've got a valuable new solar system on your roof. At the same time, your home WILL be worth significantly more when you sell because, hey, what home buyer doesn't like free electricity?

Also, unlike other home upgrades like new kitchen appliances or bathroom fixtures, with solar panels in NJ, you will not have to pay any sales taxes on your system. That's 7% you save upfront, even without statewide solar power rebates.

Solar guides for your New Jersey city

For more information about going solar near where you live, check out the following resources:

Useful links

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