New Jersey Solar Incentives, Tax Credits & Rebates Guide 2023
Updated September 21, 2023
There are many solar discounts, rebates, and tax breaks available for NJ residents who wish to power their homes and businesses with solar.
The following guide covers everything you need to know about the latest NJ solar incentives including tax credits, rebates and NJ solar programs.
Enter your zip code to see which solar incentives your home qualifies for!
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The Green Energy Tax Credit
The Green Energy Tax Credit, also known as the Federal Solar Investment Tax Credit (ITC), 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 panels 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!
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.
Enter your zip code to see if you qualify for state solar incentives!
Do I Qualify?
Please enter a zip code
NJ Competitive Solar Incentive (CSI) Program
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!
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Our team will guide you through the best options for your home.
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Yes, New Jersey offers solar incentives to help reduce the costs of solar for home & business owners. These NJ solar incentives include property tax exemption, net-metering policies, 30% Green Energy Tax credit, and more! See the complete list of NJ Solar Incentives here.
Yes, New Jersey offers a 30% Green Energy Tax Credit and Property Tax Exemptions for NJ home & business owners. See the complete list of NJ Solar Incentives here.
New Jersey Solar Incentives 2023 include Sales Tax Exemption, Property Tax Exemption, a 30% Green Energy Tax Credit, Net Metering & SRECs sales, and flexible purchasing options. See the complete list of NJ Solar Incentives here.
