Incentives

Environmental benefits are not the only reason to go solar.  There are a number of financial incentives available to help you reduce the cost of a solar project and improve your return on investment.  In addition to state and federal incentives, one of the best ways you can improve your solar project’s economics is to monetize the SRECs associated with your solar project.

 

Avoided Electric Costs

Eliminate or reduce your monthly electric bill.  Installing a solar energy system is your hedge against the rising cost of electricity.  With electric rates rising every year, the savings are substantial.        

 

New Jersey Renewable Energy Incentive Program Rebates

The NJCEP is no longer offering upfront rebates for solar projects.  If you participate in a SREC-Based Financing Program offered by a utility company, you may be eligible for a rebate.  Residential projects can receive $.50/Watt up to 7.5 kW, the project must be less than or equal to 10 kW.  Commercial projects can receive $.50/Watt up to 30 kW, the project cannot exceed 50 kW.  Systems larger than 50 kW are not eligible for a rebate.   

New Jersey's Clean Energy Program will continue to accept projects that apply to the SREC Registration Program.  

 

Tax Credits

The Federal Government offers assistance in the form of a tax credit.  A full 30% of your system installation can be recovered as a tax credit on your purchase year's tax return.

For commercial clients only, the American Recovery and Reinvestment Act of 2009 allows renewable energy project owners to apply for a non-taxable cash grant from the US Treasury Department equal to 30% of the basis of an eligible project. 

Please consult your tax advisor. 

 

Solar Renewable Energy Credits (SRECs)

Beyond the State and Federal incentives, it is important to understand that you will be awarded Solar Renewable Energy Credits (SRECs) for the power you produce.  Each time your solar energy system produces 1,000 kWh's (kilowatts hours) of electricity, an SREC is issued which can then be sold or traded separately from the power. 

New Jersey's Renewable Portfolio Standard (RPS) requires the State's energy suppliers to acquire a certain amount of SRECs in order to provide a portion of their electricity from solar power.

Most residential and commercial system owners have limited options for selling their SRECs because energy suppliers typicaly do not engage directly with small system owners.  SolarWorks NJ has a partnership with one of the largest  SREC aggregators in the county, SolSystems.  Through our partnership, SolarWorks NJ can offer clients several reliable financing solutions that will make going solar more affordable.   

 

 

We will develop the most advantageous funding for your project. Depending upon size, geographical location, amount needed, cash flow and tax status we will combine that information with the above State Rebates and Federal Incentives and determine an appropriate, fiscally sound financial strategy that makes sense for you.