Cost > New Jersey

New Jersey legistlators have made the promotion of renewable energy—and solar power, in particular—a state-wide priority. As a result, the state leads the country in providing cash incentives for homeowners and businesses to get solar. Under New Jersey's Clean Energy Program, the state offers a generous per-watt rebate for individuals and  for companies. What's more, lawmakers just recently revised their Renewable Portfolio Standard (RPS) to require that utilities produce around 1500 MW of renewable energy by 2021. The Garden State has never looked so green.

In many cases, a combination of state-sponsored incentive rebates and tax credits can significantly reduce the final installed costs of a particular project. Below, you'll find info on the programs available in New Jersey. Also, don't forget the 30-percent federal tax credit available to residents and businesses that install a solar energy system.

For a complete listing of solar energy installation professionals in your area, visit our New Jersey Solar Directory.

New Jersey Solar Rebate Programs

In recent years, NJ has given a LOT of money to residents and businesses to help offset the costs of installing solar energy systems.

New Jersey Clean Energy Rebate Program

Eligible: 
Photovoltaics (along with wind, biomass and a number of other forms of renewable energy systems) in residential, commercial, nonprofit and institutional sectors

Amount:        
Rebate amount varies between $0.15 to $4.10 per watt of DC power, depending on technology and sector. Rebates for residential systems are limited to 10kW of DC power, while rebates for commercial systems are cut off at 100kW.

Example:
To get an idea of how much cash might be on the table, here are a couple hypothetical cases:

• A typical 3-kilowatt PV system for residential sector could expect to receive around $10,500
• A 100-kilowatt PV system for the commercial sector could fetch up to $245,000

Other info:
To be eligible, PV systems must meet a set of performance and safety standards, and must be covered by at least a 5-year warranty.

NOTE: the project's budget of $273 million is up in 2008, and currently no rebates are available. You should still apply, however, because once new funding becomes available your application will be addressed in the order it was received.
 

New Jersey Tax Incentives

To date, state legislators have focused most of their efforts on establishing rebate programs, so be sure to check out the "Rebates" tab at the bottom of this page. NJ does exempt nearly all solar and wind energy product from sales tax.

Solar (and Wind) Sales Tax Exemption

Eligible: 
All types of solar (and wind) for all sectors

Amount:
100% exemption from NJ's 7% sales tax for purchases on solar and wind energy products

New Jersey Grants and Loans


Public Service Electric and Gass (PSE&G): Solar Loan Program

Eligible: 
Photovoltaics for all sectors

Loan terms for residential (currently not available):        
10 years at 6.5% interest

Loan terms for residential:
15 years at 11.11% interest

Other info:
PSE&G offers these loans for "behind the meter" PV system to all its customers. Loans may be used to cover up to 60% of project costs, with the remainder to be financed by the customer. The innovative, and really cool, aspect of the program is that customers may repay the loan either in cash or by signing over their Solar Renewable Energy Certificates (SRECs).

Put breifly, each utility is required to produce a certain percentage of renewable energy, either by funding energy projects independently or, as is the case here, by purchasing renewable energy directly from residents and businesses. SRECs are increasingly viewed as an effective market-based mechanism for encouraging investment in renewable energy. 

New Jersey Production Incentives

NJ Board of Public Utilities: Solar Renewable Energy Certificates (SRECs)

New Jersey's renewable portfolio standard (RPS) stipulates that 22.5% of all retail electricity must be come from renewable energy by the year 2021. What does this mean for electricity suppliers? Naturally, they need to produce and/or source more renewable electricity. How can they do this? Well, beyond actually producing the energy themselves—from hydro or utility-size wind or solar—they are obliged to purchase Solar Renewable Energy Credits (SRECs) on the open market.

Who supplies SRECs? Any resident, business, school, or government entity that produces solar energy and has registered with the NJ Board of Public Utilities. What this means is that you can be paid for the energy produced by your PV installation.

Eligible: 
Photovoltaics for all sectors

Amount:        
About $200 per megawatt/h, or about $0.20 per kilowatt

Other info:
NOTE: the Board of Public Utilities is currently revamping this program t

PSE&G offers loans for "behind the meter" PV system to all its customers. Loans may be used to cover up to 60% of project costs, with the remainder to be financed by the customer. The innovative, and really cool, aspect of the program is that customers may repay the loan either in cash or by signing over their Solar Renewable Energy Certificates (SRECs).

Put breifly, each utility is required to produce a certain percentage of renewable energy, either by funding energy projects independently or, as is the case here, by purchasing renewable energy directly from residents and businesses. SRECs are increasingly viewed as an effective market-based mechanism for encouraging investment in renewable energy. 

New Jersey