Curious if Government Benefits are still available to go solar in NJ? The answer is yes. There is still time to take advantage of the Federal and State benefits. You must purchase your solar system to collect these benefits. If you lease, you will forfeit these benefits to the leasing company.
The Federal Government offers a 30% tax credit for the entire system cost. You will receive this credit once you or your accountant file Form 5695 to the Federal Government for the calendar year in which your solar system was installed. If you pay your income taxes through your employer, then you will receive a check for the approved credit amount. If you own your own business and pay your taxes, then you will decrease your tax liability for the approved credit amount. It is important to keep in mind that you will not receive the entire tax credit amount unless you pay the equivalent or more in your income taxes to the Federal Government. As of now, the 30% Federal Tax Credit is set to expire on December 31, 2016.
30% Federal Tax Credit Example
Your Income Tax Liability for 2015: $12,500
Your Solar System Cost: $30,000
Your 30% Tax Credit: $9,000 (you will receive entire credit since $12,500 is greater than $9,000)
Your Solar System Net Cost: $21,000
The State Government also offers a benefit in the Solar Renewable Energy Certificate/Credit (SREC) Program. This program will reward you (the system owner) with one certificate for every 1,000 kWh of A.C. your solar system produces. These certificates are traded on a market for cash, in which the ultimate buyers are the utility companies. The value of these certificates are not guaranteed but have increased significantly since 2012; after the politicians increased the requirements in the Renewable Portfolio Standard (RPS) that utility companies must comply with. The owner of the system is entitled to SRECs for 15 years after installation. This benefit is also transferable to new home buyers if you decide to move before the 15 years is up. As of now, there is no expiration date to the SREC Program.
SREC Program Example
Your Solar System A.C. Production in 2015: 9,875 kWh
Number of SREC Received in 2015: 9 Certificates
Value of SREC in 2015: $210/certificate
SREC Revenue in 2015: $1,890
Feel free to Contact Us for more information on the government benefits that are available to you in NJ.