Solar incentives in New Jersey can be much higher than most people realize, as long as you take the time to look into what they are and how to qualify for them. As solar energy becomes more popular, more and more people are finding ways to save money on their electric bills while also helping the environment by investing in the installation of solar panels on their homes or businesses. But it’s not always easy to know if you’re getting the biggest bang for your buck.
Federal Tax Credits
The federal solar tax credit, also known as the Investment Tax Credit (ITC), allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems, and there is no cap on its value. For example, if you spend $5,000 on a solar installation and are in the 25% marginal tax bracket, you will save $1,300 in taxes.
Net Metering
In Nevada, utilities offer net metering to their customers. Net metering is the process of crediting solar energy system owners for the electricity they generate and send back to the grid. For every kilowatt-hour (kWh) of solar electricity produced, the customer is credited a set rate on their utility bill. This can help offset some of the cost of going solar. If you have questions about how this works or want to see if you qualify, contact your local utility company.
There are also incentives available for people who live in low-income housing. The Residential Energy Assistance Program provides financial assistance with upfront costs such as installation and loan payments. Contact your local Department of Housing and Urban Development office for more information.
Energy Savings
With the hot summers in New Jersey, solar energy can be a great way to save on your energy bill. There are many solar incentives available, so it’s important to do your research and find the best one for you. Here are a few things to consider when looking at New Jersey solar incentives. First, what type of electricity plan are you currently on? If you’re on a tiered rate plan, then purchasing a solar system may not benefit you as much as if you were on an off-peak or flat rate plan. You’ll also want to check with your utility company about their net metering policy; if they have one, then they’ll give back any extra energy that is generated by your system and send it back into the grid.
Another thing to consider is whether you’re eligible for an energy tax credit. In New Jersey, you may be able to get a tax credit from either your state or local government. This is a great incentive that can save you thousands of dollars on your initial investment. Additionally, if you sell power back into your utility company, then you’ll also be able to see some savings on your utility bill as well. Finally, make sure that whatever solar incentive program you choose offers financing options.
Leasing vs. Buying
If you’re considering solar for your home in New Jersey, you may be wondering if it’s better to lease or buy your system. Here are a few things to consider before making the decision. If you are going with a purchase plan, keep in mind that some states offer tax credits and other incentives that can offset a large chunk of the cost of installation and equipment. For example, residents of Nevada receive a tax credit from the federal government and an additional rebate from NV Energy when they install a residential system. These incentives make purchasing an affordable option for many homeowners.
However, there is no guarantee that these credits will last forever – make sure you take this into account when deciding which option is best for you!
Leasing solar panels are popular because the homeowner doesn’t have to spend the money upfront, but instead pays over time through the leasing company. When you go this route, ask questions about how long your contract lasts (usually somewhere between 10-20 years), how much maintenance work is included in your monthly payments, and what happens at the end of your contract term (you’ll either have to renew your contract or turn off service). Buying solar panels can save you money down the line if you’re willing to put down a sizable sum up front. Installing a solar panel system costs an average of $25,694.
Going Green
Going solar is a great way to save money and help the environment. And, in New Jersey, there are plenty of solar incentives to sweeten the deal. By opting to go solar you can reduce your carbon footprint as well as utilize natural resources more efficiently. Lastly, if you plan on selling your home anytime soon, it’s wise to find out what impact going green will have on your home’s value.
