What are the 2024 Solar Incentives in New Jersey?

May 29, 2024

Going solar in New Jersey has financial advantages. There are economic benefits to solar in New Jersey. With the help of solar contractors in NJ, you can benefit from federal and state programs for your renewable energy plans. These incentives can save you substantial money over the solar system’s life.

Current programs include:

  • New Jersey’s Renewable Energy Exemption
  • New Jersey’s Sales Tax Exemption
  • Successor Solar Incentive Program
  • Federal Solar Tax Credit

Let’s take a closer look at each program.

Save on Property Taxes with New Jersey’s Renewable Energy Exemption

    Renewable energy systems can increase your home’s value, but that doesn’t mean your property taxes must. New Jersey allows property tax exemptions so you won’t pay extra because of your solar setup. Solar Contractors in NJ will walk you through the process.
    This benefit is available by completing an Application for Certification of Renewable Energy Systems and submitting it to your local assessor. They will adjust your property value before solar installation, ensuring you save on taxes. Solar Contractors in NJ can guide you through all the paperwork.

    Save on Solar with New Jersey’s Sales Tax Exemption

    If you’re buying solar energy equipment in New Jersey, here’s some great news: you won’t have to pay state sales tax! To benefit from this exemption, provide your solar provider with the Exempt Use Certificate (Form ST-4) when you purchase. Solar Contractors in NJ can help you navigate this process to ensure you get the maximum savings.

    New Jersey Successor Solar Incentive Program

    New Jersey’s Successor Solar Incentives (SuSI) program has replaced the previous Solar Renewable Energy Certificate (SREC) program. Under SuSI, homeowners and companies with solar panels can earn money ($85 per 1,000 kilowatt-hours (kWh) of energy generated) by selling SREC-IIs, which are credits representing the environmental benefits of the electricity they generate. Utility companies buy these credits to meet the state’s renewable energy standards. Solar Contractors in NJ can help you understand how to maximize these benefits.
    For residential net-metered systems, you’ll earn $90 for each SREC-II, corresponding to 1,000 kWh of solar energy produced. To learn more or to apply, visit New Jersey’s Clean Energy Program website. Solar contractors in NJ are knowledgeable about this solar benefit and can help you get started.

    Federal Solar Tax Credit for New Jersey Residents: Solar Contractors in NJ Can Help

    All New Jersey residents can explore the federal Solar Investment Tax Credit (ITC), which covers 30% of your solar panel system’s total cost. This credit lowers your federal tax bill and is typically worth several thousand dollars. If your credit is more than what you owe in taxes, the remaining balance will roll over for up to five years.

    Solar contractors in NJ can assist you when it’s time to claim your credit. You’ll need to use IRS Form 5695 to apply for this credit on your federal tax returns.

    Want to learn more about these programs and how they can benefit you? Our team of experienced solar contractors in NJ are here to help! Contact us today to start your solar journey.