Renewable Portfolio Standards
New Jersey has a very strong RPS (Renewable Portfolio Standards). These standards require utilities to increase the production of energy from renewable energy sources (wind, solar, biomass, and geothermal) by a certain date or pay a fee. Rather than paying the fees, utilities in strong RPS states offer solar incentives to homeowners. New Jersey’s RPS set the goal of 22.5% of all energy coming from renewable sources by 2021.
RPS Solar Carve-Out
A solar carve-out is that portion of renewable energy in a state that must come specifically from solar. New Jersey’s solar carve-out of 4.1% by may 2028.
Good net metering in a state allows owners of solar energy systems to sell excess power to the grid at the retail rate. This is great because the retail rate in New Jersey is significantly higher than the wholesale rate that large power plants receive for the electricity they sell to the utility. The ability to both buy and sell electricity from the grid allows you to balance your consumption and production, instead of wasting the excess power you produce.
Transition Renewable Energy Certificates (TRECs)
TRECs are the result of good net metering in New Jersey. For every megawatt-hour (MWh) of solar power your home system produces, you generate one TREC. You can then sell the TRECs in a marketplace to utility companies to help them meet the New Jersey Renewable Portfolio Standard (RPS). The value of TRECs varies depending on the system you install, but as an example, homeowners with residential rooftop or ground-mounted solar panel systems can earn $91.20 per TREC. That means if you install a 7-kilowatt (kW) system that generates 7 MWh per year, you could make as much as $638 a year selling your TRECs.
Interconnection standards are rules for connecting solar and other electrical power systems to the grid. The standards in New Jersey are clear and strong, which makes the interconnection process less expensive and complex. Small solar power installations (less than 10kW) qualify for simplified procedures with no application costs. This can be a definite benefit in bringing a solar energy system online.
Performance-Based Incentives (PBIs)
It’s not the sunniest state in the nation but somehow New Jersey ranks in the top 10 in metrics like cumulative amount of solar electric capacity installed (#5), solar capacity per capita or watts per person (#9), and number of solar jobs (#9). Way to go green, Garden State!
One way New Jersey has encouraged residents to opt for renewable energy? By offering generous Solar Renewable Energy Credits, or SRECs, for those who own their panel system. SRECs correlate to the number of kilowatt-hours that your system has generated. Don’t miss out on this incentive, team up with Revolution Solar to easily find local solar installers!
Sales Tax Exemption
Buy a home solar system without paying a dime in sales tax! That saves homeowners in New Jersey 7% immediately.
Property Tax Exemption
Similarly, thanks to the property tax exemption for renewable energy systems, New Jersey residents who invest in a solar energy system, thus adding value to the home, keep paying the same property tax they paid before the system.
Federal Solar Tax Credit
New Jersey homeowners who go solar can also make use of the Federal Investment Tax Credit, which allows system owners to deduct 26% of the solar system’s cost from their Federal taxes. This percentage is expected to fall over the coming years, so start comparing solar quotes today so you can enjoy the maximum benefit!