New Jersey is ranked among the top 10 states in the US for solar production. So it’s no surprise that homeowners in Washington Township, New Jersey, are turning to solar power to reduce living costs. Solar power systems require a significant initial investment, but there are long-term savings, tax incentives, and financing options that justify the upfront costs.
Average Cost of Solar Panels in New Jersey
System size is one of the biggest factors to influence the price of a solar power system. In Washington Township, New Jersey, homeowners need a 5 kW system, on average, which costs $2.75 per watt. At this price, the cost of a solar power installation comes to $13,750.
The biggest incentive available to NJ homeowners is the federal tax credit that slashes the price of their solar power installation by 30%. So, the cost comes down from $13,750 to $9,625. Remember that as the solar installation size gets bigger, the price increases and the tax credit also increases proportionately.
Other Incentives that Reduce the Cost of Solar Power
Apart from the federal tax credit, NJ residents also have access to many other benefits that can bring down the cost of their solar installation. Here’s a brief overview.
NJ Net-Metering Program
New Jersey offers a net metering program in the state. Homeowners with solar installation can sell the excess electricity they produce from their system to the grid. For every kWh produced, homeowners get credits for future utility bills.
Property Tax Exemption
In the real estate market, solar systems are considered a home improvement, which raises the property’s value. However, unlike other home improvements, homeowners do not have to pay any extra property tax for the solar installation.
Solar Sales Tax Exemption
New Jersey charges a sales tax of 6.625%. However, if you purchase solar power system equipment, you are exempt from the sales tax. This tax break also extends to solar equipment like solar greenhouses, sunspace, and more.
Successor Solar Incentive (SuSI) or SREC-II
SuSi replaced the massively popular solar renewable energy certificate (SREC). Under SuSI, homeowners get one credit per megawatt-hour of solar power produced. Homeowners then earn $85 for every credit, which they can sell.
Play Smart: Minimize the Costs, Maximize the Benefits
By planning your solar power installation right, you can dramatically bring down the upfront costs. You can also completely do away with the costs by opting for $0 solar loans and leases. Green Power Energy can create a custom plan that suits your budget and energy needs while helping you realize all the incentives offered by the state and Federal governments.