What is Net-Metering and how does it work for New Jersey Residents?
New Jersey allows for Net-Metering which allows property owners who have converted to solar energy to sell excess electricity back to the grid at the retail rate. This is great because the retail rate of NJ net metering is significantly higher than the wholesale rate that large power plants receive for the electricity they sell to the utility. Additionally, the ability to both buy and sell electricity from the grid allows property owners to balance consumption and production, instead of letting any excess electricity go to waste.
What are SRECs and What Are Their Benefits?
When New Jersey property owners install a solar energy system, it produces more than just electricity – for every megawatt-hour (MWh) of solar power, panels also generate one SREC. These SRECs can then be sold on a market to utilities to help meet the New Jersey Renewable Portfolio Standard (RPS). Prices for these certificates vary with supply and demand. Geoscape Solar has a core team of qualified SREC portfolio managers who are experienced in procuring optimum returns for these valuable commodities.
Solar Sales Tax Exemption
When a New Jersey resident purchases a home solar system, they are 100% exempt from any sales tax, due to the PV energy sales tax exemption. This translates into spending 7% less on solar equipment.
Property Tax Exemption
With the property tax exemption for renewable energy systems, New Jersey property owners who invest in a solar energy system do not have to pay any additional property taxes on the value which solar panels adds to their property.
Federal Solar Tax Credit (ITC)
In addition to the incentives and programs mentioned above, the Federal Investment Tax Credit (ITC) reduces the cost of solar energy systems by 30 percent. The ITC applies to property owners who buy their system outright (either with a cash purchase or solar loan), and have enough income for the tax credit to be relevant.