Solar Tax Credits

A solar tax credit is an amount of money that taxpayers can subtract from the taxes they owe to the government. Tax credits are claimed when you file taxes from the previous year. If you made a solar investment that was approved by the government in that previous year, you would be able to deduct that amount when you file your taxes with the government. All products that are eligible for tax credits for residential energy efficiency are labeled with an Energy Star certification. Learn more about federal tax credits.

Solar Renewable Energy Certificates (SREC2)

New Jersey has always been one of the best states for solar: higher-than-average electricity rates and strong solar incentives have helped thousands of New Jerseyans achieve quick payback periods on their solar investments. Above all, the state’s renewable portfolio standard and associated solar renewable energy certificate (SREC2) market have been instrumental towards growing solar throughout the state. However, in June 2018, the state decided to phase out SREC2s in favor of a new, yet-to-be-established successor solar program. In an effort to bridge the gap between SRECs and the next phase of solar incentives, the Garden State decided is implementing an intermediate transition solar incentive, known as SREC2s.

The easy calculation for this is for every 1,000 kwh produced by your solar system you get a check for $100 for commercial and $90 for residential and the contract is for 15 years from the start of your solar system.

Average small business uses 100,000 kwh a year

Average home uses 10,000 kwh a year

Solar Rebates

Solar rebates work differently than tax credits by getting cash back into your hands more quickly after you switch to solar. While there are no federal rebates for energy efficient purchases at this time, many state governments, local governments, and utility companies offer cash rebates for the purchase of energy-efficient products. Some manufacturers offer specials and sales that make it easier to power your home with clean, renewable energy.