One big misconception about solar panels is that it’s too expensive for homeowners. This will often deter people from looking into this renewable energy option for their homes or businesses. Fortunately, this couldn’t be more untrue. There are many financing options that are geared towards residents of New Jersey.
That being said, we’ll discuss New Jersey’s different solar financing alternatives for residential and commercial property owners. Discover eligibility requirements, advice on selecting the best financing plan, and the magic of PPA’s (power purchase agreements). We’ll cover a lot here, but don’t hesitate to schedule a consultation with Green House Solar, a certified NJ solar energy business, to discuss cost-effective solar energy solutions in more detail.
Understanding New Jersey’s Solar Financing Options
Now is the ideal time to invest in solar energy for your house or business if you’ve been thinking about it. Incentives and financing alternatives abound, which make solar installations in New Jersey very cost-effective and profitable.
Federal Incentives for Solar
The federal government has stepped in with solar incentives that are arguably as good or better for some people. For solar projects started between 2022 and 2032, the current Federal Investment Tax Credit (ITC) is a generous 30%. That comes right off the top of your tax bill. Additionally the Inflation Reduction Act offers 10% off for solar systems that are 100% made in the US, 10% off for systems installed in “energy communities” like brownfield sites, and another 10% off for systems installed in designated economic development areas, offering additional savings on top of that.
Tax-exempt organizations in New Jersey can now apply for the direct payment equivalent of the 30% federal tax credit, thanks to a ground-breaking change. This modification creates opportunities for non-profit property owners who want to adopt solar energy.
Successor Solar Incentive
Even though NJ discontinued the original SREC program, New Jersey still provides attractive solar incentives through its Successor Solar Incentive (SuSI) Program. For residential, business, industrial, and community net-metered solar systems, the Administrator Determined Incentive (ADI) offers a fixed payment guaranteed for 15 years. For each megawatt hour of energy produced, the value of the incentive varies depending on the type and scale of the solar plant, often ranging from $70 and $120.
Solar Tax Exemptions in NJ
You can also take advantage of the Solar Sales Tax Exemption as a resident of New Jersey, which exempts substantial solar equipment purchases from paying sales tax at all costs. Additionally, the Property Tax Exemption ensures that the value a solar system adds to your property is not taxed.
Solar panel installation in New Jersey typically costs between $20,000 and $100,000, but the long-term savings far surpass the initial outlay. Solar panels frequently have warranties of 25 years or longer, and even after 25 years, they still provide roughly 92% of their initial electricity with little to no degradation.
Going solar can provide businesses in New Jersey several advantages, including net metering, investment tax credits, accelerated depreciation, and solar renewable energy certificates (SRECs).
Get Credits for Supplying Solar Energy to the Grid
Net metering is advantageous because it enables property owners to get credits for surplus energy that is sent back to the grid. By offsetting their electricity costs with these credits, they may incur no expenses for the net power used. Both the environment and your energy bills benefit from this.
At Green House Solar, we promote solar ownership and provide a range of financing choices. We have options available with no upfront out-of-pocket costs for consumers with excellent credit, whether you decide to own your solar panels or prefer leasing or power purchase agreements (PPAs).
Power Purchase Agreements (PPAs)
As rates have risen, the landscape has changed and solar loans are not as attractive as they once were just a short time ago. Solar leases have had a bad reputation in the past, but PPAs offer another way to purchase your power (and lower your electric bill) without putting any money down.
With a PPA, the company who installs your panels sells the power generated to your property at a fixed rate that is typically lower than your current utility bills. This lower electricity price serves to offset your purchase of electricity from the grid, while the solar company receives the income from these sales of electricity, as well as any tax credits and other incentives generated from the system. During this agreement, the solar company is responsible for the maintenance and overall performance of the panels. What’s great about this is you can save money upfront and then after 5 years, you can choose to buy the solar system outright.
At Green House Solar, we know how crucial solar financing is to maximizing the advantages of solar energy. If you have any questions that were not covered here, please contact someone from our team today or visit our website.
