Solar Incentives 2021 – Now Is the Time for Home Solar Installation
Updated: Dec 10, 2021
Home solar installation is one of the most sought-after improvements for residential properties in New Jersey and around the country. While the benefits make a long list, homeowners like you still worry about the cost vs. benefit equation. Understanding the solar incentives in 2021 from both the federal government and the state allows you to make an informed decision about overall solar power system cost and what you can get out of it in the years to come.
Federal Incentives for Home Solar Installation
The incentives provided by the federal government in tax credits will lower the amount of income tax you have to pay by April 15. If you spend money on home solar installation this year, you will get to claim an Investment Tax Credit (ITC) on your IRS tax forms in 2022. Currently, the amount you can save is 26% of the price of the system. If you wait and have one added to your property in 2023, the credit will total just 22%. It makes sense to act quickly.
It is important to understand that this tax credit does not have a maximum amount. In other words, if you spend $10,000 on a few solar panels, you can enjoy a $2,600 tax credit. If you spend $30,000 on a full system for a large home, your tax incentive will total $7,800. In order to get these credits, you need to own the system. Leased solar panels do not qualify. Any local or state rebates must be subtracted before you claim the total cost of the installation.
New Jersey Specific Solar Incentives 2021
Although NJ is an expensive state to live in, it also offers some of the best solar incentive programs anywhere. First of all, any installation of a renewable energy system will not increase your property tax bill one penny. You can enjoy increased property value without higher taxes.
Solar equipment and installation purchases are also exempt from sales tax in this state. That saves you 7% on the overall cost you have to pay on top of the materials and installation charges. These two solar incentives in 2021 may already be enough to convince you to go solar this year. Add the ability to reduce monthly utility bills and actually make money from the system, and it becomes an obvious choice.
Net metering from both PSE&G and JCP&L means you can sell any extra electrical energy you create and do not use back to the power grid. Your monthly electrical bill will go down after you install solar, but sometimes it may even become a credit instead of a debit. New Jersey also offers the TREC program. You earn these Transition Renewable Energy Certificates based on how many megawatt hours your system produces. You can sell these back to the utility companies for a nice yearly bonus.
The top solar companies like Steve Whitman Solar want to make the decision to get home solar installation as simple as possible. Not only can we help you become aware of the different incentives available in 2021 and beyond, but we also offer leasing opportunities and financing to help alleviate the initial solar power system cost. Altogether, these financial benefits make greener energy production more accessible than ever before. Get a quote today from top solar installer Steve Whitman Solar!