Comments on: New Jersey Solar Power Rebates, Tax Credits, and Incentives

By: ritewinger

Fri, 19 Feb 2010 00:05:40 +0000

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!!!

By: Tor a.k.a. "Solar Fred"

Wed, 17 Feb 2010 21:30:56 +0000

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.

By: ritewinger

Wed, 17 Feb 2010 16:36:02 +0000

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.

By: Tor a.k.a. "Solar Fred"

Mon, 15 Feb 2010 23:03:31 +0000

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.

By: Susan

Mon, 15 Feb 2010 22:47:35 +0000

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???

By: glen

Sat, 16 Jan 2010 18:22:18 +0000

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.

By: Tor a.k.a. "Solar Fred"

Thu, 07 Jan 2010 16:43:33 +0000

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.

By: Brian

Thu, 07 Jan 2010 15:03:16 +0000

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.

By: Tor a.k.a. "Solar Fred"

Thu, 31 Dec 2009 21:42:43 +0000

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.

By: James J Kovalcin

Thu, 31 Dec 2009 03:55:42 +0000

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?