New Jersey Solar Power Rebates, Tax Credits, and Incentives

Is there and if so a tax credit for solar heating my pool instead of gas or electric? Thanks

Thought I just heard on the news about a special financial incentive program to help farmers / agricultural producers in NJ install solar. Can’t be part of the residential incentive program that was defunded in 2007 … Any idea what this is?

Raising property values in NJ usually leads to higher property taxes so you may never recoup your investment.

I must correct myself. I wound up looking into this after I posted. Supposedly in NJ adding solar panels will not give the local municipality the ability to increase your property taxes.

So what is actually available today? The rebates are all used up and are not being renewed and the State legislature does not seem to be able to pass a law regarding the SRECS. Perhaps if they could find a way to use this to enable them to borrow another billion dollars against the taxpayers wishes they would be more inclined to do it.

With the price of energy going up and with no end in site. I would like to install solar panels, but with the cost and life of the photovotaic cells at 25 years, it doesn’t make any sense at this time.

were can i buy them direct ,the pannels ,?? i am overqualifyied to do the work but i am not aposed to saving money

Regional: Green Buildings Open House, October 4th
On Saturday, October 4, 2008, from 10:00 a.m. to 4:00 p.m., the Northeast Sustainable Energy Association is welcoming the public to visit local sustainable homes and buildings throughout New Jersey and the Northeast to see clean renewable energy at work. Visitors to these buildings will be able to see how their neighbors and businesses are reducing their carbon footprint and cutting their energy bills through the power of the sun, wind, and smart building design.

The Green Buildings Open House operates in conjunction with the National Solar Tour. Homeowners and facility managers across all 50 states will be showing visitors the latest in recycling, renewable energy technologies, sustainable building materials, and energy efficient appliances.

Take a local tour to learn how you, too, can save by going green.

To find the Green Buildings Open House sites nearest you, visit http://www.nesea.org

Regional businesses, Basil Bandwagon Natural Market, 908-788-5737 (basilbandwagon.com) and Basil Brook Organic Pharm 908-788-6864, will participate in the open house again this year and provide information on Energy Star rated products, solar electric, Solatubes, Solar Star attic fans, passive solar design, solar pool heating, solar hot water, kickbikes, and an all electric car “charged by the sun.”
Posted by Michael Shapiro, Editor at 12:30 AM

can anyone enlighten me on yearly maintenance costs to a grid-tied photovoltaic system on a two-story house? i pressume the panels have to be cleaned of dust and debris?

Hi d,

You should try to rinse the panels off about twice a year. If you never rinse them off and let the rain do most of the work, it will not kill your system. Grime is not so awful, the killers are like big maple leaves, bird poop, anything that blocks a large section.

you can get away with never cleaning them if you have no large debris, if you do, you need to regularly clean that stuff off.

I am adding a room to my home and reconstructing the roof to accomodate it. I’m out of money but would like to incorporate solar energy into the construction. Are there grants out there that would give me enough to put it into my new construction without significant extra cost?

I have had my system since 2005 and the only time I have noticed it needed cleaning (decreased output) was during pollen season when we had not had rain for some time. A quick spray of the hose took care of washing it off. Unless you live near the shore (salt buildup can be an issue) normal rainfall should be fine. Most systems shouldn’t get leaves on them as trees need to be far enough from your roof to not cast any shadows. We added a squirel guard after installation to protect the wiring from nest builders so you may want to have that done during install.

I recently purchased Solar panels for my house i live in NJ and since 1980 there has been a law that exempts these purchases from Sales Tax, but they charged me Sales tax anyway, saying a need some tax exempt status,what forms if any do i need to get a refund from the dealer?

I am looking into installing Solar Power System on my home. can anyone point me in the right direction for a grant or low financing?

i am looking to start a career in the solar industry i have no experience and would like to join a company to train me in the industry.how do i find the right one?

“The return on a typical residential system takes about 15-20 years depending on the size and configuration of the system. The system itself has a life or 20-25 years. Do you see the problem here?”

These numbers just aren’t right. My 9.12 KW system is going to pay itself off in 4-5 years max (federal tax credit, NJ rebate, reduced/eliminated electric bill, SREC sales). The NJ rebate has shrunk since I received mine but I think the payback period in years is still single digits. Heck, I’ll rake in 6 grand a year in SREC sales alone (conservative estimate).

There’s no reason to think the system will last only 20-25 years. In fact, the manufacturers and installers warranties are usually for that time period which tells me that they they think the system life is longer. It’s really a simple system with no moving parts. Many panels from the seventies are still operating at 80% capacity or better.

Tom, check out my blog. It’s got lots of information on some contractors and what rebates and grants are available.

Also check out the New Jersey Clean Energy Program website:

http://www.njcleanenergy.com

You’ll have to find a way to put down a chunk of money but you can minimize it by taking the federal tax credit (now completely uncapped), the NJ rebate which goes directly from the state to the contractor (not from your pocket).

After you’re producing energy you can sell your SRECs. You’ll earn one SREC for every 1,000 KWH you generate (for me that will be about every four weeks). Right now SRECs are selling for about 600 bucks.

Of course, you’ll also get to watch your meter spin backwards and get credited for all the energy you put out onto the grid if you don’t need it.

I am not sure if this is still the case – does anyone know if do-it-yourself installation can get NJ rebate?
Installing panels on the roof is very simple and all would need do is hire an electician to make nessesary connections to the grid (less then $1000). It looks to me that about 30% of the installation cost is going into someones pocket. If I could get NJ rabate myself that would lower my cost and it would only take 3 years to recuperate costs.

The link from this article to NJ rebate info is broken:
http://www.njcleanenergy.com/renewable-energy/programs/core-rebate-program/incentives/core-rebate-program

I have trouble understanding the sale of SRECs.

One is generated for every 1000KW of solar electricity your system produces, correct?

It seems you can sell them for an amount based on the current market (ranging between $100 and $700 over the past few years). I currently am charged about 15 cents per KW by my electric company. That’s $150 per SREC. How can they sell for $650? The law of supply and demand?

So you not only don’t pay for electricity, you are paid to produce it, sometimes exorbitantly? Doesn’t make economic sense.

Something else doesn’t make sense. If you are paid to produce electricity, isn’t that an incentive to waste it? If you keep all your appliances on 24 hours, all lights etc, you earn more!

Correct me where I’m wrong, please.

Bill

Bill, did you read this post and the comments below?

http://www.solarpowerrocks.com/affordable-solar/solar-fred-info-recs-green-tags-oh-my/

There’s an explanation of the price in the comments.

As to being paid to waste energy, I think you’re misunderstanding the concept of an SREC. It’s not that you’re paid for the energy you USE, but the energy your solar panels PRODUCE. Your panels produce energy, whether you use it or not. Any excess is sent to the grid, and you get credited through net metering at night.

So, by buying your SRECS-which you don’t have to sell, by the way– the utility is complying with the law. It’s saying to the NJ legislator, “Hey, see Bill’s solar panels? I just bought his SRECs. You’ve made me buy 20% of my power from green sources, and, well, shoot, we don’t own many green sources right now. But Bill, he’s got 4kW of green solar energy. So if I buy his “SRECs” then you’ll credit me for producing green energy, not coal fired, and you won’t penalize me for not complying with the law to produce so much green energy by a certain time.”

So an SREC is like a gold star for utilities. They need to pay for them on the open market unless they own their own by building solar or wind farms. The price for an SREC is going to go up or down, depending on how many are for sale, but it’s more complicated on that. Read that post above.

Hope that helps!

[...] out the more detailed explanation of New Jersey’s solar rebates and incentives. Or, if you just want to see what it will cost you and your family, just fill out our form, and [...]

I have a large southern facing field on a 3 acre residential lot in clinton twp. i was thinking of trying to put a large solar system in that exceeds my residential needs but i was told that Nj may limit what I can sell back to the grid. Any resources that i can check out to verify? Thanks

Hey, Kevin,

Not sure of the fine print, but check out this NJ program website for the “guidebook download.”

http://www.njcleanenergy.com/renewable-energy/programs/renewable-energy-incentive-program

I do know that the size of a residential system is limited to 10kW, so can’t go more than that. Net metering rules apparently allow you to go above your annual usage and be compensated for that at the “wholesale’ rate, but I’m not sure if there’s a cap on how much you can exceed.

There’s some contact info on this site as well to ask more specific questions:

http://www.dsireusa.org/solar/incentives/incentive.cfm?Incentive_Code=NJ03R&re=1&ee=1

Hope that helps.

[...] general, Solar friendly states like California, New Jersey, Massachusetts and others mentioned above can see a payback within 7 to 12 years, depending on the [...]

Is there any increased risk of fire when installing a solar or other green energy system?

Artstacks,

I can only speak to solar installations on this. Solar panels will keep your roof slightly more dry, so if you’re depending on a nice wet roof all the time to retard fires in your attic, you’re out of luck. That scenario being very unlikely, no, there is not any increased fire risk since all the conduit is protected and you won’t be seeing any sparks fly out of it. Would be more eye catching if it did spark up though, no?

My system (9.12 kw) is going to pay itself off in no more than four years, and that is without figuring in any rate increases for electrical power.

I can’t see how the solar panels would increase (or decrease) the risk of fire. The panels, even at peak sunlight, are no hotter than the shingles already on a roof. It’s not like they generate an open flame or anything.

It is a serious structural commitment to install the panels, which are bolted through the shingles and plywood right into the support structure of the roof. I’m not worried about it since I re-shingled before the panels went on but someday, somebody might need to do a new roof. It’ll be their problem (to have the panels removed and then reinstalled).

[...] is really in the top 2 of solar states, as far as incentives and net metering is concerned. (New Jersey could be #1. Yes, New Jersey.) The reason is that Colorado is not only offering some of the richest [...]

Here is a question I have not seen addressed anywhere on the web!
What are the tax consequences of the “profits” generated from a solar installation in New Jersey?
Are the SREC’s taxable at either the federal or state levels?
If so, can the solar photo voltaic system be depreciated over the lifetime of the installation?
Is the New Jersey state rebate taxable on the federal level?

James, excellent questions for a tax geek. We are solar geeks here, so please don’t take our advice without double checking with your specialist.

First, the answer to many of your questions will depend on whether you are a business or a residence. If you are a resident, our understanding is that your state rebate is not taxable as income from the Feds or the state.

The income from RECs, on the other hand, I have no guidance on that. I suspect that it would be income because you have the option to sell them or not to sell them.

I’m not sure about the depreciation factor in New Jersey. However, I can tell you that solar systems in NJ are exempt from sales tax and any property tax increase.

Hope that helps. Please double check with your tax expert.

All this requires is low cost financing, if an individual has to tap his own resources not everyone has the credit to add 15k to 20k on top of their current credit needs. Guarantee financing at 5% for 10 years and the energy savings makes this an easy choice. Make people figure out their own financing options and it limits the number of people this will be viable.

Hey, Brian. I agree, but many companies do offer some kind of financing. In some states like Hawaii, the state also offers 0% financing for solar hot water. Then there’s the new trend in PACE financing, where you finance solar through a special tax assessment on your property.

Since every area and utility are different, I urge you to take the time to get a quote and your installer will tell you about the different types of financing available in your area.

Thanks for commenting.

i am considering getting solar panels on my roof. The only thing stopping me is that i don’t know anyone who has it. the installation company has told me i can get approx 1 srec credit per month, about a $600.00 value currently. I just would love to hear from someone who has this installed and the results they are getting as far as srec payments.

In response to owning solar panels, we hooked up about a year ago, our electric bill in the summer months is about $3.00. We are able to sell our SREC (each time you accumulate 1000kw it equals 1 SREC, sells for approx $500.00-$670.00. You can make around $8,000.00 a year. Winter months you don’t make as much, understandably. We are quite happy with the system.. HOWEVER… Has anyone determined if we claim the sales? Are we exempt because the money comes from us doing our part to preserve the planet? We still have to pay off the remaining balance of the system, although we were fortunate enough to get a good deal… Any answers???

Susan, I’m sorry, but we’re very limited on our tax advice here, since we’re mainly solar geeks, not tax geeks. My guess is that this would be treated as income but not sure about that. I would check with a tax advisor or your utility….who would be issuing that MISC 1099, I believe. If you haven’t gotten one, then perhaps it is indeed exempt…for now.

FYI, Gov. Christie froze all the rebates on NJ Clean Energy last week. So every NJ state rebate is in limbo right now. These rebates are a substantial reduction in the cost of your new solar system, so if they go by-by, then solar in NJ will suffer a MAJOR setback.

Thanks, Ritewinger for the news. Our understanding is these cuts may not apply to these particular NJCE funds, as they were already dedicated. But let’s see how that plays out.

SF, hopefully that will indeed be true, because I think there is an order that NJ electric companies must produce 20% of their total energy via clean energy by 2020. I’m starting a solar panel installation business and would hate to see the rebates disappear, UNLESS panel pricing would drop by a significant amount to make the rebate system unnecessary. I think the rebates hurt the industry in that people think of solar as a “gimmick” industry and a fad, as opposed to a long term solution. Can you imagine if 20, 30, 50% of Americans installed panels on their property??? AMAZING!!!

From my calculations and my bill I need 1530KWH as monthly average. I would like to go at 125% to take advantage of reverse metering and have room for heated pool and others later……
I have a cleared 1 acre lot beside the house so instead of roof mounts as it is a Tudor home with cedar shingles I was thinking of stand mounts on the extra acre – Any thought and pricing adjustments I would need to makes

I finished my 10K system in June and … did my research. I went with the highest efficency panels (Sunpower). The panel over produce there 10K rating. I also took advantage of the state rebate which for my system was $13,500. (that rebate has since been reduced) I expect to pay little or nothing for electric ever again. From $260 a month to zero. I did professional air sealing and had an expert evaluate my energy usage. The items which were not efficient Fridg/Old central air unit etc. were replaced. So I generated a lot of my electricty and now use less. I will get back about $20,000. on my fed. Tax. I borrowed this amount at zero interest thru my installer. I produced 4K in power in my first 3 months. Yes thats 4 X 650.00 so far. My electric bill this summer was all zeros. My system will pay for its self in approximately 3 years. Leaving me 12 more years to collect SRECs (15 year program) and pay nothing for electric. I highly recommend my solar installer and more importantly starting the process by interviewing 4 or 5 installers in your home. Its a 6 month to a 1 year process, but if your willing to put in the time its well worth it.

I think this just a temporary situation with the credits we have run into this same problem in Arizona.

Is there a disadvantage to have ground mount system vs. roof mount? I have large backyard and plan to install 11KWH system.

Hi NS,

Ground mounted systems typically will cost you a little more since they require a racking system underneath the panels. Also, depending on how far away you place them from your home will determine more cost, especially if additional trenching is required. You’ll probably be interested to check out these other adders to system cost. And, as always since you’re in New Jersey you should definitely check out the group pricing discounts available to you.

To Jim of NJ, who was your installer? I spoke to two and they did vary in product, type of installation and cost.

The reason I believe SREC’s are not taxable is because they are not income but return on capital investment(ROI). The solar industry is a non taxable industry at the current time. There will be no 1099 forms coming from your aggregator for now. We went with a 5.29kWh Trina/PvPowered system to offset 6500kWh or our 12000 kWh yearly use. So far we’ve done good thru the winter averaging 16 kWh even through a gloomy December where some days we couldn’t get 2! Really wish we had more roof space!Will look at a ground system to possible get some more going.

Hi,
My husband is in the process of getting a solar system for a home unfortunately our house is not is the right location and the panels will need to be installed on the side of our house. I think this will look terrible. He wants to do this and is going forward witht project. Home depot has a company that does installs with a company they use panels from BP. Has anyone had any contact or used this system. Please let me know your thoughts.
Thanks

Hey Beth,

I wholeheartedly agree with the insane idea of solar on the side of the home. Who will see it? Will it be visible from inside the home? If no other roof location is suitable, then I would look at a ground installation given the right sun exposure, and barring that, solar Pv panels can be engineered to mount virtually anywhere the sun shines.. and once that meter starts turning in your favor, the monthly bill will look better than the side of the house until you realize WHY that bill looks better each month. Then , perhaps that side mount solar PV array won’t look so bad in the final review. Go for it!

I think the solar systems are are about the greatest thing i’ve seen in my life time so far. I am a 20 year liscensed (self employed Electrician ) looking to do solar exclusively. My problem is I need a partner to wear “the tie” and do the enormus amounts of paper work as well as some design. Solar rocks and i will keep trying….Thank you

How does one handle the problem of a tree blocking sunlight from hitting a solar panel that one wants to install on a roof in NJ? Does NJ have a law similar to California’s 1978 “Solar Shade Control Act”? That is, can a tree be legally cut down in NJ to facilitate solar energy production? If so, let me know at Jajosky@GMail.com

I have a similiar situation as the above person commented. I just submitted for a C variance that I will need to construct ground mounted solar panels. I believe my neighbors are planning to plant trees along the southerly property line to intentionally shade the proposed panels. There are 13 circles along the property line, on their property opposite to where the panels are proposed. They know where the panels are going because I notified them as part of the variance requirement and they saw the plan.

Are there any laws in New Jersey to prevent shading of the panels. I know California has a law about this, or can anyone offer any suggestions.

Has anyone installed solar panels on their townhome roof in NJ?

In 2009 I constructed a new hay barn on my farm in Sicklerville New Jersey and decided to install a 10kW photoelectric system on the roof. I used panels that are self adhering to the standing seam metal roofing installed on the South facing side of the roof. Since the solar panels were installed on the roofing before it was put in place, the roof became part of the solar system and I claimed a federal tax credit on the difference in cost between the regular barn roofing and the Standing seam. The total cost amounted to $75,377.26, which was higher than expected because all the wiring had to be explosion proof. (Example, a 200 amp electrical panel that could be picked up for $175 normally cost $850 in a dust tight version). For the first time in my life my timing was right on. The 30% Federal tax credit of $22,613 reduced the cost to $52,764.24 and the $1.75 per watt NJ rebate of $17,500 knocked it down to $35,264.26. Starting in July of 2010 I have sold 19 SRECs which has reduced the cost to $23,025 and will be selling an additional one this month for another $651. The system has reduced my power consumption by 22,291 kWh as of today which has saved me an additional $3500. I haven’t projected the pay-off date yet, but as you can see, it’s going in the right direction. I’m happy with the system. The panels produce considerable power even at lower light intensities. It was cloudy today but the were still kicking out 4000 watts when I read the production stats off the inverters at 4 PM this afternoon.

We just had a 3.8 KW system installed on our roof in Collingswood, NJ. We are waiting for PSE&G to switch out our meter so we can start accumulating SERCs. We were told we would get 6-7 SERCs per year with this system but finding this website it looks like we will only get 3-4 based on the system we have? Am I reading this correctly?

My wife was speaking to the building inspector who also has solar, he said he brokerages his SERCs himself and does not go through PES&G thus selling to the highest bidder. How do I go about doing this and if I set up to start with PSE&G can I change and do this myself? Any help would be appreciated.

Hi Doug,

First off, congratulations on installing your new solar power system. Indeed, we estimate from our experience you will probably be generating between 3 and 4 SRECs per year in New Jersey. If you are actually getting more than that, please let us know.

In terms of selling your SRECs, it is difficult to sell small quantities directly to PSE&G because you are relatively small potatoes – even though they are interested to get their hands on all the SRECs they can.

Therefore, we recommend using SRECtrade. They aggregate all the small potatoes together to comprise bigger SREC lots, which then get more easily gobbled up by the utilities. There are forms on the site to register, and you can always contact them for personalized help.

Warm regards,

- Dan @ Solar Power Rocks!

Hi
I’d like to know the rebate policy for NJ in 2011,Thanks ,If you can ,please give s sample case of PV to let me know the finance issues of the PV project.
Thanks a lot.

Hi everyone.. I’ve been reading about solar energy in NJ and would like to have one installed on my home. Can someone help me with some questions that I have about the system cost and how to pay for the system.

Thank you

Joe in Mechantville

Hi Joe (and anyone else curious in New Jersey),

I am available any time for a phone consultation and can help you answer any questions you might have about financing, incentives, and NJ rebates. I can also get you a quote. Send me your phone number at dan@solarpowerrocks.com, the best time to reach you and I’ll give you a buzz!

- Dan

Thanks Dan H for your help however if I already submitted paperwork with PSE&G do you know if I can cancel it at anytime? My installer is setting this all up and am wondering… also PES&G is to install a digital meter which shows the amout of energy they are getting and once an SRECs it obtained I guess they send me a check. It’s been about a month now and they haven’t installed the meter. We already lost a 1/2 an SREC… does anyone know how long it takes for them to come out? Asking my installer and not sure if I’m getting a real answer.

Doug

Hi Doug,

While the special meter will be nice, you don’t need it to claim your SREC and you haven’t lost anything. What’s important to keep is your electric bill, where hopefully there is an accounting of how much power you are sending back to the grid from your panels and how much you are consuming. If there is not, you definitely need to hound them to get the meter in because there’s no accounting of how much power you’ve created. With any sort of accounting on your bill, you will be able to prove you are generating your SRECs and can sell them. I’m surprised PSE&G has taken this long to get back to you. I’d recommend contacting them directly for the status of their meter installation.

Dan I haven’t looked at my bill. Do you know if PSE&G has such an accounting with thier bills? I did call them directly and it was installed about about 3 days however I did not get any info on how to read the meter? They are supposed to send out some sort of paperwork….

Curious about buying a house in NJ with solar system (5 yrs old) on roof, seller wants to take SRECs with him/her, but they are moving out of state. Can they retain SRECs when no longer NJ state residents? Also, what are the risks to a buyer of house with solar if seller retains SRECS. Any assistance is appreciated.

Does anyone know if Solatube (solar skylights) are eligible for a rebate or credit from NJ?

Are there seminars available to show private owners how to sell SRECs themselves? As I understand it we can I would like to learn more.

About how much house value is increased with solar panels?

I live in Jersey City. I have a flat roof and no trees around my house that are tall enough to block the use of solar. I am sick of oil cost. Can someone let me know the cost of instillation and how you go about getting it.

Hi Gloria,

Fill out the form here, and that will get the ball rolling. The installation cost depends on your electricity usage and/or budget. At the least, you’ll get a free quote:

http://www.solarpowerrocks.com/solar-group-purchasing/

Hi Sally, home value is increased 20x your annual electricity savings with solar panels!

Susan, Indeed solar can be installed on a slate roof!

can this be done on a commercial site? I have an old garage–flat roof with no trees-near an open field–a small strip mall next store want to install on garage and sell to them–is this possible??

I recently got 10KWH system installed on my Shed roof as did not want any thing on my house. It is about 100 ft away from my house and in open with south side facing slanted roof about 10 ft high from the ground. Its cost was little high. My installers and company I bought the system bundled all the cost into one. All I did was refinanced my house @no cost financing with my lender atul.rastogi@gmacm.com. Great thing is along with all the credits and SREC’s the interest on the investment is also now tax deductible. Since, it is an equipment I can claim the depreciation too. If my calculations are right I will be even in 3 years with all the savings, credit, interests and cost of electricity. With changes in technology there is a big improvement in system every 5-6 years and lower cost. I would be very comfortable in upgrading my system in 5-6 years and selling current panels back into the market for 20C on a dollar. Extra cash. My new system would be almost free and more efficient.

CAn you tell me if the tax credits are refundable tax credits.

Hello,when will you update this site things have changed a lot since 2010 and are you aware SRECs are trading for under 200 bucks per right now. There is no longer any state rebate for solar either. When will Christie sign the bill into law that will move us into the energy year 2014 so solar can move forward in this state. We are flatlining right now and solar will not rock until the SREC market can get readjusted. Update your site and get out of your cave so you can properly inform people.

Hello, I am doing a report on an analysis of the waste that is generated through used-up solar panels, and storage batteries that have reached their life-time capacity. However, I am really having a hard time finding this information. Can anyone suggest an article, website, or can explain? Thank You, Carol