Undoubtedly, electricity costs account for a large share of a home’s budget. And while solar energy promises to reduce those costs, the upfront costs of installing a solar system can be prohibitive for many homeowners. For starters, conservative estimates show the system can cost between $15,000 and $30,000, meaning it’s beyond the reach of many individuals. Even so, there’s a workaround – Check This Out for details.
All the same, New Jersey is taking strides to make solar energy more accessible for its residents. And New Jersey Solar Initiative – an independent entity – is on the front lines, working to help reduce the cost of going solar. That way, you can access low-cost renewable energy. With their help, you too can benefit from the various programs on offer – by the state and local service providers.
By being informed, you can avail yourself of the numerous incentives and subsidies offered to residents who decide to go solar. So, what programs are available to you? Let’s walk through a few of them to provide you with a better understanding of the services you may be eligible for.
- Power Purchase Agreement (PPA)
In essence, a PPA is an agreement between you (the customer) and your installer or solar company. It enables you to purchase electricity generated by a solar system at a lower price than your current utility rate.
The advantage of signing a PPA is that you pay nothing upfront and don’t have the added burden of maintaining the system or paying for repairs, as these costs are part of the contract. Besides, the PPA ensures you benefit from additional incentives and tax credits offered by the state or federal government.
- Net Metering
This approach allows you to use your solar system’s excess energy as a credit. This credit can offset the energy you draw from the local utility grid. What’s more, you can earn extra cash for energy produced and credited to the grid.
During months when you produce more power than you use, most utilities will issue a credit that rolls over to the next month. Most utility firms offer partial credit, implying you get part of your excess energy credited while the remainder is credited at a later date or a given rate.
- Sales Tax Exemption
You’re exempt from paying sales taxes when you buy a solar system. This exemption encourages homeowners to install solar and take advantage of clean energy.
Thus, you can save 6.625% (the state’s sales tax) on a solar installation. While it may not seem like much, it can help reduce the upfront costs of going solar. Besides, the more expensive the system, the more you can save.
- Property Tax Incentives
Usually, when you upgrade or update your home, the value of your property increases. In turn, this means you’re eligible for an increase in your property tax bill. The state offers a property tax exemption to offset this effect and encourage homeowners to go solar. As such, you can enjoy the new system’s benefits without worrying about additional taxes.
- Transition Renewable Energy Certificates (TRECs)
TRECs allow homeowners to monetize the solar energy generated by their systems. In essence, these are certificates issued for each megawatt-hour (MWh) of electricity produced.
For instance, one MWh equals one TREC. You can then sell your TRECs at a flat rate of $91.2 to your utility company for up to 15 years – these firms are obligated to buy all TRECs produced. So, the more power your solar system produces, the more renewable credits you can expect in return.
Knowledge is Key to Making the Transition
The New Jersey Solar Initiative provides an honest perspective to help you go solar and reap the benefits without having to bear a huge financial burden. The firm also helps you find solar installers in your vicinity so you can leverage their expertise.
Similarly, the team helps you estimate the projected savings from a solar system. The process involves providing the following information on their site:
- Your property’s details – so they can advise you on the available incentives and credits to maximize your savings.
- Your energy consumption – your electricity usage offers an understanding of your needs, allowing the firm to recommend the right solar system size.
After that, you can view your savings and determine if solar is a financially feasible option. Then, the firm creates a tailored plan to help you make the switch.
As you’ve noted, the New Jersey Solar Initiative isn’t about selling solar. Instead, the entity strives to educate you on the upsides of going solar and how you can play your part in preserving the environment. You can explore their website or contact them for expert insights and guidance. That way, you’ll be in a great position to take advantage of the various incentives. Plus, your switch to solar will be hassle-free once you’re informed.
