You don’t have to live in the Northeast to be a leader in solar. Thanks to incentives like solar renewable energy credits (SRECs) and tax exemptions, the Garden State has earned itself a coveted place among the top 10 solar states in the United States.1
|Solar Savings Types||Value of Savings|
|Federal Solar Tax Credit||26% of the final cost of the solar system|
|New Jersey Solar Renewable Energy Credits (SREC)||Varies depending on market value|
|Property Tax Exemption||Property tax exemption on added home value from solar system|
**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 solar system from Sunrun.
Solar renewable energy credits, or SRECs, can help home solar system owners earn a return on solar.2 New Jersey sets a Renewable Portfolio Standard (RPS) requiring companies that provide electricity to get a portion of its energy from renewable sources like solar power. To meet the RPS, electric companies can buy solar credits from home solar systems. Home solar system owners can sell SRECs through an aggregator like SRECTrade, which bundles up their SRECs and sells them to the utility.
When you purchase a solar system and participate in New Jersey’s SREC program, you’ll earn SRECs for the first 10 years of owning your system. An SREC in New Jersey is worth approximately $200, with the average household earning around six SRECs per year. That means you could earn $1,200 per year through SRECs, adding up to $12,000 in 10 years.3 Keep in mind that New Jersey’s SREC program expires in 2021.4
Homeowners understand the value of property tax exemptions, so it’s good news that New Jersey is offering a tax exemption for residential solar systems.5 And since purchased solar systems may increase the value of your home by up to $15,000 on average,6 you’ll get even more bang for your buck if you decide to move.
New Jersey’s Sales and Use Tax Exemption for Electric Power Generation and Storage Equipment7 is a welcome addition to the other incentives available in the Garden State. That means you can pocket the extra 6.6% state sales tax you would normally pay when you buy a home solar system and battery.8
In addition to New Jersey’s solar incentives, you’ll be eligible for the federal solar tax credit if you buy your own home solar system outright. The tax credit can reduce the cost of a solar installation by 30%,9including a solar battery purchase.10 That means if you purchase a 6-kilowatt system for $18,300, you’ll pay $12,810 after you receive your tax credit.
The federal solar tax credit is scheduled to drop to 26% in 2020, then 22% in 2021. After 2021, the tax credit is slated to be phased out. Learn more about federal solar incentives.
At Sunrun, we understand that everyone's financial situation is different. Whether you want to own your system and your solar incentives or simplify them with a solar lease for as little as $0 down, we offer a range of flexible financing options—all of which help you claim your slice of Garden State sun.
Join over a quarter million American households who have gone solar with Sunrun. Whenever you’re ready, our solar advisors are here for you. To get started, get your free quote today.
*We recommend contacting a tax professional to most accurately determine the impact of the federal solar tax credit on your taxes.