New Jersey is one of the best places in the US to invest in solar for your home. The combination of net metering, a healthy solar carve out system, the 26% federal solar tax credit, and some of the highest utility power costs in the nation makes for a high return on investment.
Solar Tax Credits
A solar tax credit also known as federal tax credit, is the amount of money subtracted from the taxes they owe to the government. In New Jersey solar tax credit allows you to deduct 26% of the cost of installing a solar energy system from your federal taxes.
Solar Renewable Energy Credit (SRECs)
Solar renewable energy credits, or SRECs, can help home solar system owners earn a return on solar. When you purchase a solar system and participate in New Jersey's SREC program, you'll earn SRECs for the first 10 years. For every 1,000 kWh your solar system energy produces, you earn one SREC. Solar energy system owners can generate significant income by selling their SRECs.
Net metering helps homeowners maximize their renewable energy investments. When a renewable energy system produces more electricity than the homeowner actually uses, the homeowner will be compensated with credits at the full retail value of the electricity.