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Solar Tax Credits & SRECs for Residents of Camden, NJ
Thanks to a combination of federal and local incentives, New Jersey is consistently in the top 10 when it comes to residential solar panel installations in the United States. The combination of solar tax credits, SRECs, and other local incentives means that solar panels are affordable for many residents of Camden, NJ. This article explains how these incentives lower the overall cost of your solar panels, making solar a smart investment for the future.
For those who cannot purchase solar panels outright, there are a number of solar financing options available. This includes solar leases, which let Camden residents get solar panels for as little as $0 down! At Momentum Solar, we have been helping Camden homeowners make the move to solar for over 10 years. As one of the first solar companies in the state, we are proud to have some of the most experienced and knowledgeable solar installers on our team.
Solar Tax Credits in Camden, NJ
The federal solar Investment Tax Credit (ITC) is a well-known program that is available to homeowners in Camden and throughout the United States. This program is very straightforward and essentially provides a 26% reduction on the cost of your solar panels. The refund is given in the form of a tax credit, allowing you to reduce your income tax liability by the equivalent of 26% of the cost of your solar panels.
The average cost of solar panels in Camden is around $16,000 for a typical home. This means that you can reduce your income tax liability by $4,160 during that tax year. If you don’t owe this much income tax in the given tax year, the remaining amount can be rolled over to subsequent tax years. Taking this solar tax credit into account, the overall cost of solar panels can be reduced to approximately $11,840.
SRECs for Camden Residents
New Jersey offers Camden residents a unique and valuable incentive that provides a cash refund for the first 10 years that you own your solar panels. This program is known as Solar Renewable Energy Credits or SRECs. It was created as a way to motivate the utility companies to produce more energy from renewable sources, such as solar. In order to generate the required amount of solar energy, utility companies can buy solar power from residential customers in exchange for SRECs.
One SREC is granted for each megawatt-hour of electricity generated by your solar panels. The value of an SREC varies throughout the year, but you can expect to receive about $170 and $260 per credit, with a limit of six credits granted per year. SRECs can be given during the first 10 years that you own your solar panels. With a 5-kW system you can expect to earn between $8,500 and $13,000 over 10 years!
Solar Tax Credit & SRECs Will Expire Soon – Act Now to Lock In Savings
As with most good things, these incentives won’t last forever. Both the solar tax credit and SRECs have set expiration dates. The solar ITC will be phased out completely by 2024 and stepped down in coming years, as follows:
- 2020: 26% reduction
- 2021: 26% reduction
- 2022: 26% reduction
- 2023: 22% reduction
- 2024: No reduction available for residential solar panels
Similarly, new applicants for the SREC program will only be accepted until May 31, 2023. After this point, owners of solar panels in Camden will no longer be able to take advantage of this valuable, cash-back program. You still have a few years left to take advantage of the solar tax credit, but we encourage you to act now as the demand for residential solar panels in Camden is likely to increase as the deadlines draw closer.
Explore Your Options with a Free Solar Consultation from Momentum Solar
p>We are committed to helping residents of Camden, NJ make the switch to clean, renewable solar energy. In order to make the process as easy as possible, we offer a free, no obligation consultation to help you understand the costs of solar and the solar financing options available to you. At the end of the consultation, you will know the cost for your solar panels and understand how to leverage solar tax credits and other local incentives to reduce the overall cost of your system. If you’re ready to get started, please give our solar installers a call today to schedule your free consultation!
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