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Going Solar in New Jersey

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Incentives to Help You Go Solar in New Jersey

There are plenty of reasons for residents of New Jersey to invest in solar energy. The State offers incentives at multiple levels to help residents install solar power and earn rebates or other benefits.

We’ve compiled some solar incentive information for residents of New Jersey who want to take advantage of current prices. Installing solar power can provide utility bill savings over time and is a positive step toward protecting the environment.

State Incentives

  • As a resident of New Jersey, you may be able to receive an exempt use certificate from the provider of the solar system. This can help you eliminate sales tax.1
  • You can earn renewable energy credits by enrolling your system in the SREC (Solar Renewable Energy Credit) Registration Program. One SREC is awarded for every 1000 kilowatt-hours your system produces. You can then sell these credits to certain utility companies through the SREC Tracking System.2
  • New Jersey has legislation exempting renewable energy systems used to meet on-site electricity from local property taxes.3
  • Your New Jersey home purchase comes with solar in mind. State law dictates that all people purchasing a new home have the option to install a solar energy system (if it is technically feasible).4
  • New Jersey law protects your right to receive sunlight on your property. You can establish a solar easement to ensure that your neighbors or other entities don’t shade your solar system.5
  • Homeowners’ associations in New Jersey cannot ban rooftop solar panel installations on select homes. While they are allowed to create some rules, their powers over solar installations are limited.6

Net Metering

Net metering allows you to share the renewable energy your solar panels produce with other homes. You can do this by sending your excess electricity back to the grid. In return, your utility company will compensate you with payments or energy credits. You can use these credits to purchase energy from the grid when your solar system isn't producing power (such as at night).

All of the electric companies in New Jersey regulated by the New Jersey Board of Public Utilities must offer net metering to their customers.7

PACE Financing

You may have heard of PACE (Property Assessed Clean Energy) Financing, a program that will loan the entire cost of an eligible energy upgrade to a homeowner, who can then pay it back over a 20 year period.8

New Jersey does not currently offer any residential PACE programs.9

Federal Incentives: Act Now to Get the Most Benefit

As a way to promote clean and renewable energy, the federal government has put in place two nationwide solar incentives that are available to Nevada residents. Homeowners should apply for them shortly after installation is complete. Our experts from LG's Solar Concierge can help you understand these incentives and how to apply.

  • The Federal Solar Tax Credit allows Americans in any state to deduct 26% of the cost of their residential solar installation from their federal taxes, dollar for dollar, through the end of 2020. The ITC then steps down to 22% for projects that begin construction in 2021. After 2021, the residential credit is scheduled to drop to zero, although a commercial and utility credit will remain.10 So lock in your ITC advantage by going solar now!
  • Customers of a public utility can save money at tax time because the money, credits or subsidies they earn are not taxable.11

Discover LG's Solar Concierge to Go Solar in New Jersey

Your geographical location, roof orientation, and electricity rates are major factors that influence the amount of savings solar energy can bring you. LG's Solar Concierge offers you a reliable online tool to find out personalized size and saving information. as well as access to our expert energy advisers so you get the right offers for your home. Choose a trusted global brand that offers high power output, high efficiency, long-term durability, and panels that produce power during late afternoons when the angle of light is lower (when utilities may charge more for electricity from the grid). Get peace of mind from knowing that we will be here for you now and for the 25 years guaranteed in our product, performance, and labor (up to $450) limited warranty.

When you go solar, ask for the brand you can trust: LG

Access LG Solar Concierge

References

1. New Jersey Division of Taxation. "Sales Tax Exemption Administration Tax Topic Bulletin S&U-6". New Jersey Division of Taxation. p. 1, 17. n.d. https://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su6.pdf. 4 Dec. 2018.

2. New Jersey Board of Public Utilities. "SREC Tracking System". New Jersey's Clean Energy ProgramTM. State of New Jersey. n.d. http://www.njcleanenergy.com/renewable-energy/programs/srec-tracking-system/overview. 13 Dec. 2018.

3. DSIRE. "Property Tax Exemption for Renewable Energy Systems". n.d. https://programs.dsireusa.org/system/program/detail/3100. 13 July 2020.

4. Justia Law. “52:27D-141.4 - Developer to offer to install solar energy system”. 2018 New Jersey Revised Statutes. n.d. https://law.justia.com/codes/new-jersey/2018/title-52/chapter-27d/section-52-27d-141.4/. 8 Mar. 2019.

5. DSIRE. "Solar Easements". n.d.
https://programs.dsireusa.org/system/program/detail/19.

6. Justia Law. “Solar collectors on certain roofs, homeowners association authority limited”. 2013 New Jersey Revised Statutes. https://law.justia.com/codes/new-jersey/2013/title-45/section-45-22a-48.2. n.d. 28 Mar. 2019.

7. New Jersey Board of Public Utilities. "Net Metering and Interconnection". n.d. https://njcleanenergy.com/renewable-energy/programs/net-metering-and-interconnection. 19 Nov. 2018.

8. PACENation. "About PACENation". PACENation. n.d. https://pacenation.us/about/. 28 Nov. 2018.

9. PACENation. "PACE Programs Near You". PACENation. n.d. https://pacenation.us/pace-programs/ . 28 Nov. 2018.

10. Solar Investment Tax Credit.” SEIA. https://www.seia.org/initiatives/solar-investment-tax-credit-itc . 11 APR. 2019.

11. Federal Government of the United States. "Title 26 - Internal Revenue Code". Federal Government of the United States. p.520. n.d. https://www.govinfo.gov/content/pkg/USCODE-2011-title26/pdf/USCODE-2011-title26-subtitleA-chap1-subchapB-partIII-sec136.pdf . 10 Dec. 2018.

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