NJ Solar Incentives, Tax Credits & Rebates Guide 2023
There are many solar discounts, rebates, and tax breaks available for NJ residents who wish to power their homes and businesses with solar energy. The following guide covers everything you need to know about the latest NJ solar incentives including tax credits, rebates and other solar incentive programs.
If you don't have the time to read, you can talk to a solar expert for free, who will answer your solar questions and provide you with a customized solar quote for your home or business.
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You can also watch our short (2 minute) YouTube video guide to NJ Solar Incentives here.
Federal Solar Investment Tax Credit (ITC)
The Federal Solar Tax Credit is a 30% tax credit available to homeowners who install solar panels throughout the State of New Jersey.
This tax credit covers up to 30% of the cost of installing a solar energy system, solar batteries, and other installation costs. Making it the most generous solar incentives available.
Fortunately, the Solar ITC was extended in 2022 and is set to expire in 2035 unless congress extends it again. Here are some details about the Solar ITC benefits.
- Solar systems placed in service between 2020 and 2021 receive a 26% tax credit.
-Solar panelss placed in service between 2017-2019 and 2022-2032 receive a 30% tax credit.
-Solar energy equipment placed in service after 2033 receive a 26% tax credit.
Talk to a solar expert today to find out exactly how to file this tax credit and save 30% on your taxes!
New Jersey Solar Tax Exemptions
Unlike many states, New Jersey provides multiple tax incentives for homeowners who want to convert to solar energy.
- Property Tax Exemption: In NJ, Solar panels are exempt from increased property taxes. So, 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 only be taxed on $400,000. This means you can enjoy the benefits of a home solar system AND the increased property value, without the additional taxes!
- State Sales Tax Exemption: Solar panel systems 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.
Be sure to speak with a solar expert to ensure you apply for these tax credits correctly.
NJ Solar Renewable Energy Credits (SRECs)
Solar Renewable Energy Certificates (SRECs) allow NJ residents to sell the excess solar energy that is produced by their solar energy system back to New Jersey's shared 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.
This is a unique benefit for NJ residents as not all states have such favorable solar programs. Another great reason for NJ home and business owners to take advantage of solar energy in their home state.
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NJ Competitive Solar Incentive (CSI) Program
In December of 2022, The New Jersey Board of Public Utilities (NJBPU) agreed upon a new initiative called the Competitive Solar Incentive (CSI) Program to encourage solar energy in NJ. This will be an essential part of New Jersey's Successor Solar Incentive initiative (SuSI) which will significantly grow the NJ Solar Program at a lower cost to residents.
The new CSI program focuses on promoting the installation of at least 300 MW of solar power annually untill 2026. Qualifying grid-supply solar installations, non-residential net-metered solar buildings (greater than 5MW), and eligible grid-supply solar installations coupled with energy storage are all eligible for the program.
With this program, New Jersey continues to take the lead in moving America towards a cleaner energy future and promoting NJ Solar Incentives. NJ ranked #8 in 2021 in the National Solar Ranking (via SEIA) and looks to continue to improve in 2022 and 2023. Residents should be proud to be a part of a state making such progressive moves to fight climate change and improve NJ Solar incentives.
Find Out How Much You Can Save With Solar
There is a good reason New Jersey ranked #8 in the National Solar Rankings. The Garden State has taken leaps and strides to help residents convert to solar energy and reduce their electricity costs. But there is still a lot of confusion on exactly how to install solar panels in NJ. That is why EcoGen America has dedicated its business to helping New Jersey residents save money by switching to solar energy.
The solar experts at EcoGen America will take the time to go through your questions and learn about your unique situation and goals. You many choices when it comes to choosing a solar panel system. Work with NJ Solar experts to ensure you get the best possible solution for you.
Contact our solar experts today to find out which solar incentives you qualify for in New Jersey!
Enter your zip code below to see if you qualify for solar incentives.
Do I Qualify?
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To purchase a solar panel system outright, most homeowners will pay between $10,000-$15,000 depending on the size of your system. However, for NJ residents, there are several purchasing options and solar loans to help your reduce or eliminate the up front costs of solar panels in NJ.
Read more here.
Yes! New Jersey does offer a solar tax credit for home and business owners who convert to solar energy. Depending on the year your system was installed, you could save anywhere from 26%-30%! Read more here.
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. There are a number of state and federal programs that offer financial assistance and other incentives including, New Jersey Solar Tax Exemptions, the Investment Tax Credit (ITC), and NJ Solar Renewable Energy Credits (SRECs) to name a few. There are more programs available which is why it's always best to work with a state-licensed specialist like us to apply for programs that often make solar panel installations FREE!
The Solar Renewable Energy Credits program or SRECs allow homeowners to sell any excess energy generated by their solar panels back to the grid. This program lets you earn some energy credits based on the power your solar panels generate. For every 1,000 kWh, you get one credit. You can sell your credits on the solar renewable energy credit market. The current credit values range from $35 to $40.