Providing Solar Savings in Central & Southwestern New Jersey
The solar energy market for homeowners and businesses is maturing in New Jersey. Prices are historically low, and the state continues to have some of the better incentives in the United States. But policies are gradually changing.
2022 will be the last year for the 26% federal income tax credits, and New Jersey benefits are changing. This means that in 2022 solar is a tremendous savings opportunity for homeowners:
Residential solar energy systems are now typically in the range of $2.75 to $3.50 per watt (installed, before the federal tax credit). Until December 31, 2022, a 26% federal tax credit is still available on the retail price of the system. After then, it begins a scheduled reduction for the next few years. An average system in New Jersey is designed with approximately 30 panels. Such a system will generate around 13,000 kWh/year and will cost between $32,000-$38,000 before the 26% federal tax credit is applied, or between $24,000-$28,000 after the tax credit. If you pay cash, you get maximum savings day one. Choose to finance, and your loan payments will be significantly less than your current utility costs, also saving you money right away.
At current electricity rates, in NJ it generally takes about 5 – 7 years for a solar electric (PV) system to pay for itself — that’s a 20%+ return on your investment!. After that, your own solar “power plant” creates electricity for you using a free and abundant energy source, forever offsetting your energy expenses, and producing electricity that never goes up in price…no mining, drilling, transporting, or re-fueling required.
At today’s prices, your own residential solar energy system, will provide you with electricity at a rate of about 1 – 2 cents/kWh over the next 20 years. (In NJ, most people are paying the utility company as much as 19 cents/kWh today…and that will continue to go up over time.).
Increase the Value of Your Home
A solar energy system (PV or thermal) increases the value of your home. The systems last for 30+ years with minimal maintenance required. To prove this, studies have been conducted across the U.S. using real appraisal and sales data. Visit Solar Energy Adds Home Value to learn more in detail.
Earn Income Year After Year
SRECs (Solar Renewable Energy Certificates) values in NJ, although lower than in the past, are still quite a bit higher than in most states in the country. They are expected to be transitioned to another program before the end of 2019, but it is not yet certain what that change will be. Currently, each SREC earned by your New Jersey solar energy system can be sold to a utility company. The utility companies are required to purchase a certain percentage of their energy each year from renewable sources and your SRECs help them meet that goal. Currently, SRECs can provide you with regular, ongoing income increasing the ROI of your home solar panel system.