New Jersey Solar Incentives – What Is the TREC Program?
Updated: Jul 29, 2021
The initial cost of a full array of solar panels on your roof may make it harder to decide whether you want solar installation now or not. Along with all other federal and New Jersey solar incentives, the Transition Renewable Energy Certificates (TRECs) program can make the decision easier.
The NJ TREC Program Explained
In December of 2019, Transition Renewable Energy Certificates were introduced as a way to receive incentives for your solar power production. Depending on the type of solar generation system you have installed on your home, you will receive a set megawatt per hour price for the power created by the solar panels. In 2020, that price was set at $152 for each TREC you have for a period of fifteen years.
TRECs are earned based on the amount of kilowatt hours your solar panels produce. Therefore, if you add 12,000 kWh to the electrical grid, you get twelve TRECs. At $152 each, this would give you an annual savings of $1824 for a commercial building and $1904 for a residential building, as they only earn a percentage of the certificates. This example gives a very general idea of the type of money you could receive with the NJ TREC program. Course, the actual amounts depend on your system, how much sun you get, and other factors.
In order to take advantage of this lucrative program, you do need to register your energy generating system with the NJ Generation Attribute Tracking System (GATS). The company that installed the panels can give you all necessary information about the type of photocells and the size of the overall system. Create an irrevocable standing order, register for the TREC payments, and sit back and let the money roll in.
Help From the New Jersey Clean Energy Program
When it comes to affordability for alternative energy systems, New Jersey solar incentives offer multiple benefits that make the decision to order solar installation easier. The TREC program presents the best savings on a long-term basis. Of course, you will also save on your monthly energy bills as you produce free electricity from the sun. With these incentive certificates, the savings add up even more, and you will pay back the initial installation price of the entire system more quickly.
New Jersey has big goals when it comes to transitioning to alternative energy sources. Solar tops the list for changes for both residential and commercial planning. The incentives including this certificate program, property tax increase waivers, and other financial benefits make solar installations wise choice in the state.
Are Solar Panels Worth the Money?
For most homeowners, solar panel installation reduces monthly utility bills by a considerable percentage and increases property value considerably. In fact, NJ solar companies report that this state tops the list of home value improvements when it comes to the addition of solar panels.
Ultimately, the decision to hire a professional company to install solar panels on your roof comes down to practical considerations. You want to save money, help the Earth, and make a difference in your long-term finances. With the New Jersey clean energy program, TREC, and solar incentives, making the move to this alternative energy source makes a lot of sense.
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