New Jersey's Commercial Solar Incentives
Solar Renewable Energy Certificates (SRECs)
Legislation in New Jersey requires commercial utilities to have a percentage of the electricity they produce to come from renewable energy sources. To meet this requirement they need to acquire SRECS. They can either produce these themselves or pay someone else who produces renewable energy for ownership of their certificates. When you install solar panels on your home you begin to generate these certificates. Your system will generate a certificate for every MW/h you produce. Energy companies will pay you for these certificates. This means you can actually generate an income off your solar panels.
In 2017 SREC prices varied between $162 and $262. The value of an SREC is dependent on the market and the number of producers so the prices will vary.
New Jersey Net Metering
This policy ensures that you get paid fairly for the for any excess solar energy that you send back into the grid. Sometimes your system may produce more energy than you can use. If you don’t have battery storage system then this energy will feed back into the electricity grid. Net metering allows you to receive credits for this excess energy to be stored in your “credit bank”. These credits can then be applied to your electricity in nonpeak months to ensure that you can cover your electricity bills at all times of the year.
It is important because it forces companies to give customers retail value for the energy they produce, which is much better than the wholesale rate that utilities pay large power plants.
NJ State Sales Tax Exemption
When you buy a solar system you are 100% exempt from state sales tax which means that your system is 7% cheaper