This page has been updated to include 2023 New Jersey solar incentives, rebates, and tax credits. Learn about all the ways you can cash in on big savings by making the move to add solar panels to your single-family home this year.
New Jersey has one of the most far-reaching energy policies in the nation and is on track to reach an ambitious goal — that renewable energy sources generate 50% of the state’s energy by 2030. As a result, New Jersey has become one of the nation’s most significant producers of clean, green, solar energy. If you choose Solar Energy World as your NJ solar panel installer, we take care of all the paperwork ensuring you get all available incentives and income-generating benefits.
The cost of solar panel installation in NJ has dropped dramatically in the past few years. The lower price, paired with a range of valuable New Jersey solar incentives, grants, and tax credits makes solar energy feasible and more affordable than ever before.
New Jersey Solar Tax Credits
There are a few NJ Solar Tax credits you can take advantage of as a resident.
New Jersey Solar Property Tax Exemption
The New Jersey Solar Property Tax Exemption means that you pay no additional property taxes for the solar system you installed on your roof. In other words, going solar increases your home value, but you’ll pay no extra property tax for that added value.
NJ Solar Sales Tax Exemption
New Jersey Solar Sales Tax Exemption allows a 100% exemption on all major solar energy equipment you purchase for your home, which means you save 7% right off the top. All taxpayers are eligible for the exemption.
Federal Investment Tax Credit (ITC) for New Jersey Residents
You don’t have to limit yourself to local or state incentives. You can also take part in a federal program through the Investment Tax Credit (ITC). You can qualify for this credit as a homeowner if you purchase your PV system fully with cash or through a solar loan. You claim the credit when you file your federal taxes for the year. This credit covers 30 percent of your system costs. You can see this is a good year to add solar because federal tax credits are available and they provide a huge deduction.
Net Metering in NJ
Net metering in New Jersey provides homeowners a way to earn credit for excess energy produced by your system. The surplus energy flows back to the grid and is tracked by a bidirectional meter. The credits offset your utility bill when sunlight is in short supply.
NJ Solar Rebates for New Construction
The NJ Clean Energy Residential New Construction Program, offers a range of incentives, including the Zero Energy Ready Home and the Energy Star Home. In the form of cash rebates, this NJ solar incentive offsets the higher cost of building high quality, durable, energy-efficient homes.
Transition Incentive Program (TREC)
The Transition Incentive Program (TREC) replaces New Jersey’s SREC (Solar Renewable Energy Certificate) program. TREC allows New Jersey homeowners to generate one Renewable Energy Certificate (REC) for every 1,000 kilowatt hours of energy produced. If you live in a county that allows net metering, you can sell the certificates to your local utility company at a fixed rate. The savings over 15 years can be substantial.
For additional information on going solar in New Jersey, check out our free New Jersey Homeowner’s Guide to Solar Installation.
Interested in adding solar panels to your single-family home? We can help you take advantage of any applicable NJ solar incentives.