New Jersey is one of the top ten states in the U.S. for solar.1
New Jersey’s solar panel price drop over the last five years.1
State electricity generation that will come from clean, renewable energy sources by 2030.2
Electricity rates in New Jersey are almost 33% higher compared to other states.3 But controlling your electric bills isn’t the only benefit you can enjoy when you switch to solar in New Jersey. You can also create and store your own solar power to protect your home from unexpected outages and reduce your carbon footprint. Plus, there are several financial incentives to help you lease or purchase new rooftop solar panels along with a battery storage system.
Sunrun is the leading residential solar, storage, and energy services company in the country,4 and it’s one of the best solar installers in New Jersey you can team up with. We’re here to ensure you can bring home all the solar potential that the Garden State has to offer.
|Federal Solar Investment Tax Credit (ITC)**||The 26% federal solar tax credit is available for purchased home solar systems installed by December 31, 2020.5|
|Solar Renewable Energy Credits (SRECs)||Compensation per kilowatt-hour (kWh) produced by the system.6 (Varies by market value.)7|
|Solar Investment Property Tax Exemption||Property tax exemption on the added home value from the rooftop solar system.8|
|Solar Panel System Sales Tax Exemption||6.625% home solar system state sales tax exemption.9,10|
Buy and install new solar panels in New Jersey in 2020, with or without battery storage, and qualify for the 26% federal solar tax credit. The residential ITC drops to 22% in 2021 and ends in 2022.5
Average-sized 5-kilowatt (kW) system cost in NJ: $14,500 Approximate system cost after the 26% ITC in 2020 in NJ: $10,73011
The Board of Public Utilities (BPU) New Jersey’s Clean Energy Program lets you earn SRECs, also known as Solar Renewable Energy Certificates, for every kilowatt-hour (kWh) of solar energy your system creates based on market value.6,7
Add a new solar panel system to your New Jersey home and your property taxes won’t go up.8 Installing a system could also boost the value of your home.
Approximate solar home value increase in New Jersey: 9.9%12
When you buy a new home solar energy system in New Jersey, you won’t pay any sales taxes.9 The exemption is for 100% of the sales tax on an eligible solar installation in New Jersey and other solar projects like home solar systems, solar home water heaters, and solar pool heaters. This can save you 6.625% right off the bat.10
The federal solar tax credit gives you a dollar-for-dollar reduction against your federal income tax. The 26% tax credit applies as long as the solar energy system is installed by December 31, 2020. Starting in 2021, the value of the tax credit will step down to 22%. After 2021, the tax credit for residential solar ends.
*Customer’s ability to monetize rebates, incentives, and tax credits depends on several factors, including, without limitation, continued state subsidization of these policies, the applicable Sunrun product type, and whether a customer purchases or leases a home solar system from Sunrun.
**We recommend contacting a tax professional to most accurately determine the impact of the solar Investment Tax Credit (ITC) on your federal taxes.