New Jersey Solar Tax Credits, Incentives and Rebates (2024) - MarketWatch

New Jersey Solar Tax Credits, Incentives and Rebates (2024)

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New Jersey is a leader in the solar industry with over 174,692 individual solar installations, ranking eighth for total installed solar capacity nationwide. And solar is more affordable than ever, thanks to New Jersey solar incentives like tax exemptions, net metering and the federal solar tax credit.

If you’d like a free quote for a solar panel installation or to speak with a solar expert about which incentives you’re eligible for, select one of our top-rated providers below or read more about the best solar panel companies.

New Jersey offers property and sales tax exemptions for renewable energy systems and a solar renewable energy credit program for homeowners with solar. These incentives can save (or earn) you thousands of dollars over the lifetime of your solar array.

Incentive value: 100% of added property value from installing a renewable energy system

Frequency: Ongoing after initial home value assessment

When you install solar panels or another renewable energy system, your home value can increase, potentially raising your property taxes. The New Jersey property tax exemption prevents you from paying more taxes because of your solar array.

To claim this exemption, you must submit an Application for Certification of Renewable Energy Systems to your local assessor. The assessor will then reduce your property’s valuation to what it would be without the solar system.

Incentive value: 100% of state sales tax on a solar system

Frequency: Applied at the time of purchase

New Jersey exempts all taxpayers from paying state sales tax on solar energy equipment. To claim this exemption, all you have to do is submit the Exempt Use Certificate (Form ST-4) to your solar equipment provider when purchasing a home solar system.

Incentive Value: $85 per 1,000 kilowatt-hours (kWh) of energy generated

Frequency: Ongoing

New Jersey’s Successor Solar Incentives (SuSI) program replaced the state’s solar renewable energy certificate (SREC) program in 2021. Through the SuSI program, property and business owners with solar panel systems can earn money by selling renewable energy credits called SREC-IIs. The credits represent the environmental value of electricity generated by renewable energy systems, and utility companies can purchase credits to meet the state’s renewable portfolio standards.

Residential, net-metered systems earn $90 for each SREC-II. One SREC-II is the equivalent of 1,000 kWh generated by a solar panel system.

Learn more and apply for the SuSI program on New Jersey’s Clean Energy Program website.

Incentive value: No upfront savings

Frequency: Ongoing

New Jersey restricts homeowners associations (HOAs) from preventing homeowners from installing rooftop solar arrays on their property. The state also legally grants property owners the right to adequate sunlight to power a solar system through solar easements. Learn more about New Jersey’s solar easement and access laws.

Net metering programs in New Jersey allow you to sell excess energy generated by your solar panels back to your utility company in exchange for billing credits.

New Jersey requires that all investor-owned utility companies in the state offer net metering. Customers will receive a monthly credit worth the full retail value of excess energy generated by their solar panels. Customers can cash out any credits remaining at the end of their annualized period at the avoided-cost rate.

Your solar company can help guide you through the net metering enrollment process. General steps include the following:

Learn more about net metering in New Jersey on the state’s Clean Energy Program website.

All New Jersey residents are eligible for the federal Solar Investment Tax Credit (ITC) worth 30% of the total cost of your solar panel system. The ITC reduces what you owe in federal taxes and is typically worth several thousand dollars. If you owe less taxes than what your credit is worth, the remaining credit balance will roll over for up to five years.

The federal solar tax credit is available through 2032. It will decrease to 26% in 2033 and then 22% in 2034 before expiring in 2035.

Your solar installer can help you apply for this credit on your federal tax returns using IRS Form 5695.

Most homeowners with solar in New Jersey will see thousands of dollars in energy savings over the lifespan of their solar panels.

The solar incentives available in New Jersey — including the SuSI program, net metering, 30% federal solar tax credit and tax exemptions — further reduce the cost of a solar array by thousands of dollars, shortening the payback period of going solar.

Although going solar is worth it for many homeowners in New Jersey, it can be an intimidating process to select the right installer. We have compiled a list of the top solar companies in New Jersey by scoring over 40 providers based on cost, financing options, customer reviews, warranty offerings and more to save you the time and hassle of doing your own research. Before selecting a company, we recommend getting custom quotes from at least three providers.

| Company | Star Rating | Cost of an 8 kW System* | BBB Rating | Visit Site |
| $24,000–$36,000 | A+ | | | |

| Company | BBB Rating | Star Rating | Cost of an 8 kW System* | Visit Site |
| A+ | $24,000–$36,000 | | | |

In addition to lowering your carbon footprint, installing solar panels saves you money over time by significantly reducing your energy bills. Solar incentives in New Jersey, like the federal solar tax credit and net metering, can help you save even more.

If you’re ready to make the switch to solar, we recommend learning more about our top-rated solar panel installers or selecting one of our preferred providers below to get started.

Yes, New Jersey offers several solar rebates and incentives that make installing a solar power system more affordable. In addition to lowering or eliminating your electric bill, solar panels can help you earn money in New Jersey through net metering and selling solar renewable energy credits. Plus, all New Jersey taxpayers are eligible for the federal solar tax credit worth 30% of the purchase price of their solar project.

Yes. New Jersey requires that all investor-owned utility companies in the state offer net metering, so you can sell excess energy generated by your solar panels back to the utility grid.

The New Jersey Board of Public Utilities launched the Successor Solar Incentive (SuSU) Program in 2021. SuSI replaced the state’s SREC and subsequent TREC programs but operates similarly. New Jersey homeowners earn one SERC-II per 1,000 kWh of energy generated by their solar panel systems. For residential, net-metered solar systems, one SERC-II is worth $90.

Learn more about NJBPU’s SuSI solar initiative.

The total cost of a 5 kW solar energy system in New Jersey is around $13,750 before incentives. But the upfront cost of solar panels drops once you consider the 30% federal solar tax credit, NJ’s SREC program and the state’s solar sales and property tax exemptions. Homeowners can also take out a solar loan to pay for their solar panel systems over time and make payments more manageable.

The Garden State has invested heavily in sustainable solutions by incentivizing the purchase and use of renewable energy sources and electric vehicles, launching community solar pilot programs, and devoting resources to researching solar panel recycling methods and energy efficiency. As a result, the New Jersey solar industry now boasts over 4,400 megawatt-hours (mWh) of solar capacity.

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