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How Much Money Can I Save with Solar Panels in Paterson, NJ?
There are many reasons why homeowners are motivated to go solar. For some, it is the desire to reduce their carbon footprint by using renewable energy to power their home. For others, there is a strong motivation to save money and lock in energy costs for the years to come. Thanks to unique programs available to Paterson residents, the cost of solar is lower than in many other cities. This means that homeowners are able to choose renewable energy and benefit from incredible savings.
Cost of Solar Panels in Paterson
Let’s first discuss the cost of solar panels for the average Paterson household. In this region, a home with average energy requirements will need a 5-kW system. The average solar panel in New Jersey costs roughly $4,000/kW. Prices range based between solar installers, so your system may cost between $13,000 and $28,000. At Momentum Solar, most of our customers are outfitted with solar panels that cost around $20,000 for a 5-kW system.
Initial Cost of System: Around $20,000
Reduce the Cost of Your Solar Panels with Solar Tax Credits
Residents of Paterson, NJ who purchase their solar panels with a loan or by paying outright, are eligible for the federal Investment Tax Credit (ITC). This tax credit reduces the amount of income tax you owe by 26% of the cost of your system. The refund can be rolled over to subsequent years, so even homeowners who owe less income tax can benefit from the federal solar tax credit.
Unfortunately, the government has announced plan to phase out the ITC in the coming years. 2022 is the last year in which a full 26% refund is being offered. After this, the program is being reduced to 22% in 2023 for the last year of the credits. Those wishing to take advantage of this huge refund should act now by contacting our team of solar installers to set up a free consultation today.
Cost Savings after Solar Tax Credit: Around $5,200 reducing the cost of solar panels to $14,800
Save Over Time with SRECs in Paterson, NJ
New Jersey has a unique program known as Solar Renewable Energy Certificates (SRECs), which is available to Paterson residents who own solar panels. Under recent regulations, utility companies are required to produce a certain amount of renewable energy each year. The utilities rely on homeowners with solar panels to produce the bulk of their quotas.
Through the program, utility companies will purchase solar power for the first 10 years that a homeowner has solar panels installed on their property. The value of the credit varies based upon market rates and demands, but typically is worth about $200 per SREC. With a typical solar panel system, you will receive around 5 SRECs per year, resulting in $10,000 cash over 10 years. As with the solar tax credit mentioned above, this incentive will not be available forever. At the moment, applications are only being accepted until 2021. If you are thinking about getting solar panels installed in your Paterson home, SRECs are another reason to consider making the change sooner rather than later.
Cost Savings after SRECs: Around $10,000 over 10 years, reducing the cost of solar panels to approximately $4,800.
Energy Savings from Solar Panels in Paterson, NJ
In addition to the solar tax credit and SRECs, residents of Paterson can expect to see a substantial reduction in their energy bills throughout the lifespan of their solar panel system. In this region, homeowners typical save $950 a year in comparison to purchasing their electricity from the grid.
The average lifespan of solar panels is about 25 years, resulting in a cost savings of roughly $22,375. This is the minimum amount you can expect to save because the figure is based upon the current cost of electricity in Paterson, NJ. Since energy costs are expected to rise over the coming years, we expect that most homeowners would experience even greater savings over time.
Cost Savings over 25 years: Based on the numbers above, the cost of the average 5-kW system is reduced to approximately $1,375 through solar tax credits and SRECs. Taking into account the long-term savings from a reduced energy bill, you can expect to save about $22,375 by purchasing solar panels in Paterson.
Get Solar Panels Installed for $0 Down
While the figures above are motivating, not all Paterson residents are able to buy solar panels or are eligible for a solar loan to purchase them. Fortunately, there is an alternative available to those who wish to benefit from the savings of solar without an upfront investment. Through a Solar Purchase Agreement (PPA), you can get solar panels installed for $0 down.
Also known as a “solar lease,” in this arrangement your panels will be owned and maintained by a third party, such as Momentum Solar. You’ll pay a fixed rate for the energy generated by your solar panels over the course of your solar lease. This fixed rate means you will have control over your future energy bills and won’t need to worry rising energy costs.
Schedule Your Free Consultation Today
Our solar installers have been helping Paterson residents save money with solar panels for over 10 years. At Momentum Solar, we are committed to making the process of going solar as easy as possible. We start by providing a free consultation at your Paterson home. During this consultation, we’ll break down the cost of solar for your home and how much you can expect to save over the lifespan of your system.
We can also provide assistance with solar financing options. From helping you take advantage of solar tax credits and SRECs, to finding the right loan, or setting up a solar lease, our team will ensure that you can go solar at a price that is affordable for you.
Find Out if Switching to Solar is Right for You
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