What Are the Solar Tax Credits and Incentives in NJ?
Updated: Oct 27, 2021
Not only can New Jersey homeowners get an attractive solar tax credit to help fund installation, other NJ solar incentives exist to make panels a wise choice for your property. Adding solar power has long-term benefits for your financial future. They lower monthly utility bills considerably and increase property value. However, the initial costs of installation from New Jersey solar companies may feel out of reach for some families. With both state and federal tax credit options, affordability becomes much easier.
NJ Solar Incentives and the Solar Tax Credit
When it comes to deciding whether solar power is right for your home, initial expenditures can make the difference between immediate installation and indecision. New Jersey, which is one of the states most dedicated to the proliferation of solar power, offers attractive tax incentives to convince homeowners like you to choose this renewable energy source.
The PV energy sales tax exemption means you do not have to pay any sales tax, which is currently 7%, on the purchase of a solar system for your residential property. With prices in the thousands or tens of thousands, a 7% savings represents a considerable amount of money.
New Jersey also offers a property tax exemption if you have renewable energy devices installed. Since this state has some of the highest property taxes in the country, it helps to know that yours will not increase even though solar panels improve the value of your home considerably.
Does a New Roof Qualify for Solar Tax Credit?
Yes. The installation of solar panels themselves trigger the tax credits described above. If the new roof is part of a new construction project, it is possible to get further incentives from the NJ Clean Energy Residential New Construction Program. If your property qualifies as an Energy Star Home or Zero Energy Ready Home, rebates on solar panel products and installation and additional incentives may apply.
The Federal Solar Tax Credit Helps Too
Besides the specific NJ solar incentives, the federal government also offers very real financial reasons to invest in alternative energy. The Investment Tax Credit allows for an installation cost reduction of up to 26% on your federal income taxes. Of course, this means that the actual amount you save varies based on your income. However, average homeowners can easily save thousands of dollars when they choose to have solar panels installed on their home. This applies to both direct purchases and those financed with a home improvement loan or other funding source.
In New Jersey's quest to generate 50% of all energy usage in-state by 2030, they offer considerable tax credits and other incentives for solar panel purchases to both residential and commercial properties. These benefits make it so much easier for a homeowner like you to afford the maximum number of panels possible for your home and location. With all the financial and environmental advantages of solar panels in NJ, the decision for installation becomes easier than ever before.
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