New Jersey solar incentives are available for NJ residents who want to go green and take advantage of the benefits that come with installing a solar system.
The following guide covers everything you need to know about the latest NJ solar incentives including tax credits, rebates and other state incentives.
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Federal Solar Investment Tax Credit (ITC)
The Federal Solar ITC is a 26% tax credit available to homeowners who install solar energy systems throughout the State of New Jersey.
This tax credit covers 26% of the cost of installing a solar energy system, making it one of the most generous incentives available.
New Jersey residents are eligible for the solar tax credit for solar energy systems installed by December 31, 2022.
*Note: The solar tax credit will be reduced from 26% to 22% at the start of 2023 and will be phased out in 2024.
New Jersey Solar Tax Exemptions
New Jersey provides two main tax incentives for solar homeowners.
- Property Tax Exemption: Solar panels are exempt from increased property taxes. The owner of a home assessed at $400,000 who adds $20,000 worth of solar panels to the current value of $420,000 will still be taxed on $400,000.
- State Sales Tax Exemption: Solar panels are also exempt from New Jersey’s 7% sales tax, which immediately makes them more affordable. For example, if the price of your solar system is $15,000, you will save $1,050 through NJ's sales tax exemption.
NJ Solar Renewable Energy Credits (SRECs)
Solar Renewable Energy Credits (SRECs) allow NJ residents to sell the energy that is produced by their solar systems back to New Jersey's electrical grid.
Homeowners can use these credits like cash when it comes time to pay your electricity bill each month - you simply subtract the number of SRECs that were generated over the course of a month from your electricity bill.
Find Out How Much You Can Save With Solar
EcoGen America is dedicated to helping New Jersey residents save money by switching to solar energy.
Contact our solar experts today to find out which solar incentives you qualify for in New Jersey!
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