Solar rebates have made solar energy the cheapest form of electricity in history. These programs are designed to incentivize Americans to move to a more sustainable energy source and are incredibly profitable. While Maplewood, NJ residents can use net metering to reduce their utility bills over the long run, solar rebates like SREC-II and ITC help them realize more immediate financial benefits.
SREC-II (Solar Renewable Energy Certificate)
A Solar Renewable Energy Certificate is a certificate that homeowners receive for producing solar power. These certificates can be sold in the market for cash. Every time a solar power system generates 1,000 kWh of electricity, the owner gets an SREC. The price of an SREC is fixed. In New Jersey, every residential solar power system connected to the grid is eligible for SRECs. Homeowners can keep collecting SRECs for 15 years from the date of installation. Currently, the price of each SREC is $85 in the state. This is a fixed rate irrespective of how many SRECs your solar power system generates.
Federal Solar Tax Credit (ITC)
One of the most famous solar rebates available to homeowners across the United States is the Federal Solar Tax Credit. It brings the homeowner’s cost of the solar installation dramatically down, subsidizing the total project cost.
The Solar Investment Tax Credit or ITC is offered by the Federal government. The tax credit rate is currently 30% of the total cost of the solar project. So, if your solar project costs $15,000, you may qualify for a tax credit of $4,500 (30% of $15,000).
The Federal Solar Tax Credit is applicable on upfront cash payments and on solar loans. So, even if you pay a $0 down payment on your solar loan, you can claim the ITC in your tax computation.
Making the Most Out of the Solar Rebates
Solar power systems are time-tested technologies with proven benefits. However, they were prohibitively expensive for several decades and only became affordable in recent years. With affordable and high-efficiency solar panels entering the market and the government offering various financial incentives, solar adoption has accelerated.
Finally, net metering benefits have sealed the deal for homeowners. Not only can they offset their household utility bills with a solar power system, but also earn passive income by sending the excess power to the grid.
Governments and utility companies offer attractive solar rebates to inspire homeowners to switch to a cleaner and more affordable energy source. If there was ever a great time to go solar, this is it!