Over the past decade investments in solar power have seen a boom due to the decrease in price and improvements in efficiency and battery storage. Technological improvements continue to make solar panels a competitive option against fossil fuels and an economically viable investment. New Jersey is one of the few states countrywide to install over a gigawatt of solar capacity, making it one of the best states to invest in solar projects.
New Jersey’s Solar Programs
Much of the success the state has seen in solar investment is due to the initiatives the state has taken to incentivize solar investments and the production of solar systems. Net-metering, solar itc new jersey, and Renewable Energy Certificates have provided investors with ways to make their renewable investments more lucrative.
New Jersey’s Solar Tax Credits
One of the best incentives in New Jersey for installing solar panels is the federal solar investment tax credit (ITC). New Jersey residents seeking to invest in solar panels are eligible for an ITC which reduces the cost of solar installation by 26%. It is important to note that this tax credit is only available to investors who pay for their solar system outright through a solar loan or a cash purchase. The return on your solar investment comes as a tax return when you file your taxes.
New Jersey’s Net-Metering Policy
Typically residential solar producers produce more energy during the day than they consume. The net-metering policy in New Jersey allows solar producers to sell their excess energy to the grid for cash or a utility credit at the retail price. This a great benefit for residential solar producers because the retail price of solar energy is higher than the wholesale price utilities pay to power plants. The policy has provided a great solution to one of the original drawbacks of solar production— wasted energy. Now solar producers are able to use their excess powers as members of the energy market.
New Jersey Renewable Energy Certificates
As a solar producer—in addition to producing electricity—you produce a Solar Renewable Energy Certificate (SREC) for every megawatt-hour (MWh) of energy you produce. This SREC is an instrument that can be sold on the market to utilities looking to meet their renewable energy requirements. The market price of SRECs varies, but in 2019, homeowners could sell each SREC for $225. Depending on the size of your solar system and how much power you produce, selling SRECs could be extremely profitable.
Solar investment is becoming increasingly economically viable. If you live in New Jersey, you should consider a solar investment for your home.