✅ Federal Incentives
All federal benefits apply to entities in New Jersey.
✅ State Incentives
⚡ Successor Solar Incentive (SuSI) Program
New Jersey's SuSI Program offers two subprograms:
Administratively Determined Incentive (ADI) Program: Designed for residential solar installations, this program provides fixed payments for Solar Renewable Energy Certificates (SRECs).
Competitive Solar Incentive (CSI) Program: Targeted at larger non-residential and community solar projects, this program offers incentives through a competitive bidding process.
Under the ADI Program, homeowners earn one SREC for every megawatt-hour (MWh) of electricity their solar system generates. These SRECs can be sold to utility companies, providing an additional revenue stream. The current value of each SREC is $85, and payments are made over a 15-year period.
⚡ Sales Tax Exemption
New Jersey provides a full exemption from the state's 6.625% sales tax on the purchase of solar energy equipment. This exemption applies to both residential and commercial systems, reducing the upfront cost of installation.
⚡ Property Tax Exemption
Installing a solar system in New Jersey does not increase your property's assessed value for tax purposes. This exemption ensures that the added value from the solar installation is not subject to property taxes, allowing homeowners to benefit from increased home value without higher taxes.
✅ Utility Incentives
⚡ Net Metering
New Jersey requires utilities to offer net metering for solar installations. Under this program, homeowners receive credits for excess electricity generated by their solar panels. These credits can offset future electricity bills. At the end of the annual billing cycle, any unused credits are compensated at the wholesale electricity rate.
✅ Additional Considerations for Nonprofits
Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are now eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC).
Summary
New Jersey offers a combination of federal incentives, state tax exemptions, net metering, and utility-level incentives to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits.