Rebates & Incentives
In New Jersey, there are currently three programs to help defer the cost of your solar installation:
- Federal Tax Credit
- For Residential customers the federal tax credit is 30% of the purchase price. There is currently no timeframe that the customer has to use this. For Commercial Customers the federal tax credit is also 30%, however currently this can be taken as a tax free grant up front.
- SREC (Solar Renewable Energy Certificate)
Your system will produce a predetermined amount of power. This power is measured in SRECs. You are paid for every SREC you generate regardless of your consumption. This is guaranteed for 15 yrs from the date of your Solar Solution activation. These certificates are aggregated and sold like a stock. Your Power provider has to buy these and the price is determined based on supply and demand. Currently the demand is much higher than the supply and it is projected to remain that way for the coming years.
These SRECS and your electric savings combined will generally pay your monthly loan and yield a monthly profit, creating positive cash flow from the day of your solar system’s activation.
You can learn more on SREC selling/buying and check current SREC value here.