Utility savings inadvertently follow after homeowners switch to solar power in South Orange, New Jersey, and it easily runs into thousands of dollars over the years. However, it isn’t easy to calculate the amount a homeowner can save by switching to solar. Many factors influence the utility savings from a solar power installation. These can include local utility rates, average sun exposure, panels’ quality, and more.
However, government solar subsidies, rebates, credits, and net metering programs are the most prominent factors that lead to solar savings. Here is a brief overview of the factors that lead to substantial solar savings.
Investment Tax Credit (ITC)
The Federal Government offers possibly the biggest solar savings to New Jersey residents through the Investment Tax Credit (ITC). Homeowners can claim a flat 30% tax credit on the cost of a solar power installation. So, a solar power installation worth $20,000 will cost a homeowner $14,000, resulting in savings of $6,000.
NJ Property Tax and Sales Tax Exemption
Residents of South Orange, New Jersey do not have to pay any sales tax when they buy solar panels or any other related product. They are also eligible for a property tax exemption when they install a solar power system in their home. A solar system is a home improvement that raises the price of a house. However, homeowners are exempt from paying any property tax on this addition.
SREC-II or SuSI Program
Successor Solar Incentive Program or SuSI is determined based on the amount of solar power produced. Solar system owners earn 1 SREC-II credit for every 1,000 kWh of power their system produces for 15 years. The value of an SREC-II credit is fixed at 85 dollars, taking the guesswork out of the potential Return on Investment.
NJ Net Metering Program
The net metering program helps homeowners maximize their returns from their solar power system. Customers can send the excess power their solar systems produce to the grid and receive credit for it in their utility bills. Allowing them to pay only the net of their usage every month! This ensures utility savings for solar customers in NJ. Green Power Energy is a well-known name among the top solar installers in New Jersey. With their extensive experience, they guide their customers to get the most out of the benefits available to them and maximize their solar savings. Talk to an expert at GPE to know more.