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Green energy incentives are provided by state and federal governments for both residential and commercial solar energy systems.
In addition, solar system owners are able to obtain a Solar Renewable Energy Certificate (SREC) for every 1000kWh of electricity generated, which can in turn be sold to the utility companies. The state offers full exemption from the state¡¯s sales tax for all solar electric materials and equipment as well. The return on your investment will stem from two sources. One is the direct reduction in your electricity bill, and the other is the sale of your SREC¡¯s back to the utility company. The amount procured from a combination of these rebates and incentives can easily surpass your system¡¯s installation price, allowing you to accumulate net profit over time.
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The Federal Tax Credit is 30% of the total solar system installation cost for homeowners and businesses investment in solar power electric, hot water and space heating. Businesses are also eligible for new MACR depreciation benefits. |
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SREC is a tradable certificate and will be issued to you regularly as your solar system generates each 1,000-kilowatt hours of solar electricity. SRECs are traded at market value. Maximum incentive is up to $693 per MWh ($0.693 per kWh) in 2009-2010 compliance year. By 2013, 22.5% of the total power must come from the renewable energy in state of New Jersey in which at least 2% comes from solar energy. Systems must be registered with NJ Board of Public Utilities; facilities are qualified to generate SRECs for 15 years after the date of interconnection. The system owner could receive thousands of dollars in income/revenue every year from New Jersey utilities. |
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There is no sales tax on the costs of equipment and installation for all solar electric and solar thermal equipments. |
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The State of New Jersey exempts 100% of value added by your solar electric system from local property taxes. In order to claim the exemption, property owners must apply for a certificate from their local assessor which will reduce the assessed value of their property to what it would be without the renewable energy system. Exemptions will take effect for the year after a certification is granted |
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Net Metering is an electricity buying and selling policy for utility customers who operate their own Photovoltaic systems. Photovoltaic systems are connected to the utility grid. When solar electric systems generate more electricity than you¡¯ve consumed, the power meter reverses direction and returns excess electricity to the grid. Customers may receive credits at retail electric rates through this process of exporting extra electricity. You could sell your excess electricity at peak rates and buy it back at off-peak rates.
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For additional
information, please
visit the following
websites:
http://www.dsireusa.org/incentives
http://www.njcleanenergy.com/
http://www.bpu.state.nj.us
http://www.pseg.com/customer/solar/index.jsp
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