New Jersey Incentives for Solar Power
Along with incredible energy savings, customers who are installing solar panels can also receive these great state & federal incentives. In fact, many homeowners take advantage of an investment tax credit that covers as much as 26% of the total cost of the solar panels. In addition, businesses can also take advantage of federal depreciation benefits.
New Jersey Solar Incentives
Federal incentives are not the only kind available for those who have solar installed. There are also various state incentives that can help with tax implications and even provide extra money based on the clean energy produced by the use of solar panels.
New Jersey solar panel incentives include:
- Renewable Energy Credits (RECs): This is a performance-based incentive. The New Jersey Clean Energy program will help you recover the costs of installation over the life of the system. This program is coming to a close very soon.
- 0% Sales Tax: Solar energy systems are sales-tax exempt.
- Property Tax: 100% exemption from local property taxes.
How Can You Take Advantage of Incentives?
With years of experience, our team SUNEVOLUTION can handle everything in the solar process from sale to installation and beyond. We work with a seasoned SunPower dealer and have built a great reputation for providing high-quality service.
SUNEVOLUTION will take care of all the required paperwork to help you get the greatest return on your investment. There are numerous benefits to going solar- let us help you start saving today!
Federal Tax Credit Incentives for Solar
Federal tax incentives are available to both businesses and homeowners. They make it so residents and business owners can earn money back on their investment, making solar panel installation in New Jersey even more beneficial.
These federal incentives include the following:
- Federal Tax Credit: Homeowners may be eligible to receive a 26% federal tax credit on the entire price of the system without any system size limit. This expires on December 31, 2020. After that, the credit will drop to 22% until the end of 2021. After 2021, the federal tax credit is said to be phased out.
- Business Energy Investment Tax Credit: Businesses are qualified for depreciation benefits. This type of tax credit applies to electric systems powered that utilize solar power.
Solar Installation Benefits in NY
Businesses and homeowners are eligible for both the state rebates and federal tax benefits for certain solar products. Businesses can take advantage of federal depreciation benefits as well. Every state in the country will offer a kind of support program when it comes to using solar energy systems. However, if you are a NY resident you are especially fortunate, as NY state is known to have the best solar incentives in all of the United States.
2020 New York State Incentives
The state of New York also allows for various incentives to homeowners and business owners who install solar power in their homes or buildings. There are certain exemptions on taxes, as well as personal credits that you may be able to use.
- Personal Tax Credit: For residential and multi-family homes, there is a tax credit for 25% of the system cost, which is capped at $5,000. The maximum system size eligible for this tax credit is 25 kW for residential homes and 50 kW for systems owned by a condominium or cooperative housing associations.
- NY-Sun PV Incentive Program: For installers and contractors, the New York State Energy Research and Development Authority (NYSERDA) currently offers a rebate for PV systems for residential sites in any region 25kW or less. If it is a nonresidential site, it must be in Upstate and PSEG Long Island regions up to 750kW or Con Ed regions up to 7.5MW.
- 0% Sales Tax: Solar electric and solar hot-water systems are 100% exempt from sales tax.
- Property Tax Exemption: 100% exemption for 15 years.
Federal Solar Tax Credit Incentives
The federal incentives provided to New York homeowners are very beneficial. You are able to install solar panels, reduce the cost of your bills, and receive a few extra incentives that can help with tax credits as well.
The Federal Tax Credit Decreases with Each Year:
- 30% Tax Credit: If the PV system is installed by 12/31/2019
- 26% Tax Credit: If the PV system is installed between 1/1/2020-12/31/2020
- 22% Tax Credit: If the PV system is installed between 1/1/2021-12/31/2021
- 10% Tax Credit: If the PV system is installed between 1/1/2022-12/31/2022
In 2023, the federal tax credit incentive will be over and unavailable to homeowners.