Ranked 9rd in the country with an average 16% return on investment.
New Jersey has the second largest solar market – after California – in the country. This is because of the states generous incentive program. SRECs pricing has been the main driver. Due to recent legislation prices have begun to climb.
The Federal Tax Credit for Solar
The ITC, or the federal income tax credit for solar, is calculated to cover 30% of your installation cost. This amount is uncapped, and is a pure credit. There are no requirements or restrictions in qualifying for this credit. It applies to all grid-tied solar electric systems. You fill out the appropriate form on your federal tax return, and you’ll get your money as a refund. If you do not owe enough taxes to cover the full tax refund amount, you can roll over your credit to the following year and for the next 5 years.
New Jersey Solar Renewable Energy Certificates (SRECs)
New Jersey residents receive SRECs for their electrical production. SRECs are sold to utility companies annually. One credit is issued for each 1,000 kilowatt hours your solar panels generate. You can sell these SRECs yourself of have them sold through a broker.