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Solar Tax Credits & Incentives Available to Elizabeth, NJ Residents
When planning to purchase solar panels, it’s always helpful to learn a little more about the solar tax credits and incentives that are available to you. Residents of Elizabeth, NJ can take advantage of a variety of incentives, which will help gradually lower the overall cost of solar panels.
At Momentum Solar, we have been helping homeowners in Elizabeth purchase, lease and finance solar panels for more than 10 years. As one of the leading solar companies in Elizabeth, we know the ins and outs when it comes to the cost of solar and know how to leverage solar tax credits and incentives to make your purchase more affordable. To benefit from our expert knowledge, we encourage you to contact us today to arrange your free consultation.
Federal Solar Tax Credits
The federal Investment Tax Credit (ITC) is one of the most well-known and popular solar tax credits available today. This program gives you a 26% refund on the cost of your solar panels. It works as a tax credit, allowing you to deduct the equivalent of 26% of the cost of your solar panels from the income tax you owe. For individuals who don’t have a large income tax liability, the credit can be applied to subsequent tax years until it is completely consumed.
Residents of Elizabeth who wish to take advantage of this substantial refund need to act soon. The federal solar tax credit will be phased out completely by 2024. The refund amounts for the next few years have been set as follows:
- 2021: 26% of the cost of your solar panels
- 2022: 26% of the cost of your solar panels
- 2023: 22% of the cost of your solar panels
- 2024: No refund
After 2023, there will be no further solar tax credits for residential installations. If you’re considering installing solar panels in the next few years, we encourage you to act soon while this valuable credit is still available.
SRECs in Elizabeth – A Unique Program for NJ Residents
New Jersey offers its residents a unique incentive to go solar through SRECs (Solar Renewable Energy Credits). This program provides a direct cash bonus to homeowners for the first 10 years after they install solar panels. This program was created as a way to encourage the utility companies to start generating a portion of their electricity from solar power. The utility companies are able to meet their quotas by purchasing solar power from customers with solar panel systems.
Residents of Elizabeth, NJ can earn up to 6 SRECs per year. One SREC is earned for each MWh (megawatt-hour) that is produced. Prices vary throughout the year based on supply and demand and can range from about $170 – $260 per unit. If you have a 5-kW solar system installed, you can expect to earn approximately $8,500 and $13,000 from SRECs over 10 years! This incredible incentive has been the convincing factor for many Elizabeth homeowners to finally go solar.
Residents in Elizabeth, NJ can utilize net metering to ensure that excess electricity does not go to waste. Net metering is a system in which excess energy is sold back to the grid for credits that can be used at a later point. For example, your solar panels will generate more electricity in the summer than in the winter, when your electricity needs are actually higher. Net metering means that you won’t be faced with a higher electric bill in the winter, when the daylight hours are shorter.
New Jersey Tax Exemptions
In addition to the other incentives, there are also a few tax exemptions that help reduce the cost of solar in Elizabeth. These are:
- Property Tax Exemption: This tax exemption protects you from paying additional property taxes if the value of your property increases after having solar panels installed.
- Solar Sales Tax Exemption: In NJ, you will not be charged an additional 7% in sales tax when you purchase solar panels.
Learn More about Your Purchasing Options
Along with the solar tax credits, exemptions and incentives available to homeowners in Elizabeth, there are solar financing options that can make it easier to go solar. Since our inception in 2009, our solar installers have helped Elizabeth residents enjoy the benefits of solar. Whether you’re interested in taking out a loan to purchase your solar panels or prefer a solar lease, we can find the right solution for you.
Don’t put off your dreams of going solar a day longer. From $0 down financing options to the incredible rebates and incentives available, there is a way to make your dream work. The first step is to schedule a free consultation with our knowledgeable team. We will provide you with a no-obligation quote and information on financing and then leave the next steps in your hands.
Find Out if Switching to Solar is Right for You
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