Solar Business Programs for NJ
Curious if NJ commercial solar panels are the right investment for your facility? The Garden State has a rich history of promoting renewable energy and fostering several commercial solar incentives New Jersey businesses can explore. In 2022, New Jersey was the 10th highest solar energy generator in the country and this was due to the Clean Energy Act of 2018 which saw the acceleration of solar RPS to 5.1% by 2021. This bill also set the state’s renewable energy standard requiring 35% of the energy sold in the state to come from qualifying energy sources by 2025 and 50% by 2030. In 2021, the state also passed its Solar Acts bill which directed NJBPU to double the growth of the existing solar program, incentivizing up to 3,750 megawatts (MW) of solar generation by 2026. Now, we understand how much financial toll setting up a commercial solar system can cause and that is why we cover the most important New Jersey commercial solar incentives.
You can also speak with our solar expert about which incentives your business is eligible for, how much incentives can save you, and learn about all the various regulatory hurdles.
Modified Accelerated Cost-Recovery Systems (MACRS)
The MACRS is like a tax rule that helps commercial solar users get some sweet tax breaks by spreading out the cost of their solar panels over time and getting more deductions when they need them most. Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain properties through depreciation deductions. The time frame for deductions ranges from 3 to 50 years depending on the system. You can claim your deductions through the IRS form 4562.
Business Investment Tax Credit (ITC)
The ITC is a federal corporate tax credit available to businesses in New Jersey going solar in 2024. This financial incentive offers a 30% tax credit on the cost of your solar system. This means that if you spend $290,020 for a 100kw system, you will be eligible to get back $87,006 in tax credit during the next tax season. This makes the ITC one of the most popular commercial solar incentives in New Jersey. Due to its most recent amendment through the Inflation Reduction Act of 2022, to qualify for the ITC, businesses must meet certain labor requirements. These requirements are different for systems below 1 MW and those above. You will find the requirements on the Energy website.
Renewable Electricity Production Tax Credit (PTC)
The PTC is another commercial solar incentive New Jersey-based businesses can explore. Similar to the ITC, this incentive is a federal incentive offered by the IRS. However, unlike the ITC, the PTC offers a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation, adjusted annually for inflation. Solar systems that are placed in service in 2022 or later and begin construction before 2033 are eligible for a 2.75 ¢/kWh PTC if they meet labor requirements issued by the Treasury Department or are under 1 megawatt (MW)
Net Metering in New Jersey 2024
Net metering allows solar users to sell their excess energy to their utility company at a full retain value or an avoided cost rate in exchange for billing credits. This credit can be used to pay electricity bills for days when your solar system isn’t generating enough energy. At the end of the year, unused billing credits can be converted to cash at an avoided cost rate on customer demand.
In New Jersey’s net metering rules require the state’s investor-owned utilities and energy suppliers (and certain competitive municipal utilities and electric cooperatives) to offer net metering at non-discriminatory rates to residential, commercial, and industrial customers.
How to enroll in net metering in New Jersey
There are various interconnection regulations and inspections you need to go through to enroll for net metering. Typically, a solar company like Commercial-solar.org will guide you through the net metering enrollment process. However, you can expect the following process.
- Apply for Interconnection: After your solar system is installed, apply for Interconnection through your utility company.
- Evaluate Eligibility: Ensure that your solar system meets the eligibility criteria set by both your utility company and state regulations. This may include system size limits, equipment specifications, and installation requirements.
- Submit Application: Complete and submit the required application forms provided by your utility company. These forms typically include details about your renewable energy system, installation date, and other relevant information.
- Arrange Inspection: Schedule a final inspection of your renewable energy system with your utility provider or designated inspector. This inspection ensures that your system meets all safety and performance standards.
- Activate Net Metering: Once your system passes inspection and is connected to the grid, your utility provider will activate net metering for your account. You’ll start receiving credits for excess energy generated by your system and exported to the grid.
Additional Local Commercial Solar Incentives New Jersey: Incentives, Rebates, & Grants
The Garden State offers several local commercial solar incentives as part of its renewable energy standard. These include a sales tax and property tax exemption for solar panels. New Jersey commercial solar incentives also include a New Jersey Successor Solar Incentive Program amongst others. Below are the various local commercial solar incentives in New Jersey you need to know.
New Jersey Solar Equipment Sales, Use & Property Tax Exemption
According to the New Jersey Division of Taxation, renewable energy equipment including solar panels are exempted from sales tax across the state. The state also offers a property tax exemption for properties with renewable energy. This exemption is calculated based on the difference in the total assessed value of the property before and after the installation of the renewable energy system. This means that your property value remains the same from the IRS perspective as you are not required to pay any additional tax for the added value brought about by a renewable energy system. To take advantage of the sales and property tax exemption, the renewable system must be certified by the local enforcement agency in charge of ensuring renewable energy systems function as they should.
Garden State Commercial Property Assessed Clean Energy (C-PACE) Program
The Garden State Commercial Property Assessed Clean Energy (C-PACE) Program is a voluntary financing tool that allows qualifying commercial real property owners to access financing to undertake qualifying energy efficiency and renewable energy improvements on their buildings and repay the investment through an additional charge/assessment similar to their real property tax bill. While the Garden State C-PACE Program has not yet officially launched, prospective Garden State C-PACE project and financing participants will be invited to complete a Project Indication of Interest Form and submit it to gardenstatecpace@njeda.gov. You can learn more about this program on the NJDEA website.
Successor Solar Incentive (SuSI) Program – Administratively Determined Incentive
The New Jersey SuSi program replaced the SREC in 2021. However, it still fulfills the same purpose as the Solar Renewable Energy Certificate (SREC). The SuSi allows solar system owners to earn up to $152 for every 1000kW of solar energy generated and sold as renewable energy credit (SREC-IIs). These credits represent the environmental value of the renewable energy generated by a solar system and can be sold to utility companies that need to meet their renewable portfolio standards.
USDA – Rural Energy for America Program (REAP) Grants
The US Department of Agriculture has been giving out millions annually to agricultural producers and rural small businesses to pay for 25% of a renewable energy upgrade like a solar system. And, according to the NJ website, Food and agriculture are New Jersey’s third largest industry. In 2022, the state’s almost 10,000 farms generated cash receipts of nearly $1.5 billion. This makes the Garden State a great location to take advantage of this commercial solar incentive New Jersey rural small businesses and agro producers can explore.
Solar Potential in New Jersey: Incentives and Savings
A 100 kW solar panel in New Jersey cost $290,020 in 2024 without incentives despite prices having fallen by 47% in the last decade. The payback period for this averages around 11 years. However, with the high sunlight in New Jersey, the ITC, net metering, and the other commercial solar incentives New Jersey offers, businesses can save up to 70% of the entire solar system cost and still earn extra from SuSi to enable solar users in new jersey pay off a 100kw system in less than 5 years. However, this is also depending on which solar incentives you are eligible for. You can consult our experts to help you determine how much your solar system can save in 2024.
Understanding the Electric Utility Landscape and Rates in New Jersey
New Jersey deregulated its energy market in 1999, allowing people to choose which companies generate the electricity that’s supplied to their homes. This is what makes the Garden State a competitive market. Today, commercial customers pay 13.71¢/kw, paying as high as the top 10 states with the highest commercial electricity rates. The good news is, that you get to save more with solar, making solar a great choice for businesses in the Garden State.
Impact on Solar Energy Decisions in New Jersey
With New Jersey businesses potentially saving up to 70% in incentives when installing solar systems, the decision to embrace solar energy is significantly influenced. These substantial incentives, coupled with the state’s Renewable Portfolio Standard, which mandates a percentage of energy generation from renewable sources, create a compelling case for businesses to adopt solar energy solutions. Additionally, New Jersey’s ample sunlight, averaging up to 120 days annually, ensures consistent and reliable energy generation from solar panels, further enhancing the attractiveness of solar investments. Consequently, businesses are incentivized to prioritize solar energy as a viable and cost-effective means of reducing operational costs, meeting sustainability goals, and contributing to a greener future.
Are Solar Panels Worth It in New Jersey?
Considering the extensive commercial solar incentives in New Jersey, coupled with the state’s Renewable Portfolio Standard and ample sunlight, the question of whether solar panels are worth it becomes clear. With potential savings of up to 70% through incentives, businesses can significantly offset the upfront costs of solar installation and have a payback period of less than 5 years depending on the incentives. Furthermore, the state’s favorable solar conditions ensure consistent energy generation, maximizing the return on investment over the lifespan of the panels. Ultimately, for businesses in New Jersey, investing in solar panels not only makes environmental sense but also represents a financially prudent decision with substantial long-term benefits.
Why Choose Commercial-Solar.org?
When considering solar solutions for your business in New Jersey, Commercial-Solar.org stands out as the premier choice for several compelling reasons:
- Expertise in New Jersey Regulations: With a deep understanding of New Jersey’s regulatory landscape and incentives, Commercial-Solar.org ensures seamless navigation through the complexities of solar installation, maximizing available incentives and savings for your business.
- Tailored Solutions: Commercial-Solar.org recognizes that each business is unique. They offer personalized solar solutions tailored to meet the specific energy needs, budget constraints, and sustainability goals of your organization.
- Proven Track Record: With a track record of successful solar installations across New Jersey, Commercial-Solar.org brings a wealth of experience and expertise to every project, guaranteeing quality workmanship and optimal performance.
- Cutting-Edge Technology: Utilizing the latest advancements in solar technology, Commercial-Solar.org delivers state-of-the-art solar solutions that are efficient, reliable, and designed to maximize energy production.
- Comprehensive Services: From initial consultation and system design to installation, maintenance, and ongoing support, Commercial-Solar.org offers end-to-end solar services, ensuring a hassle-free experience for your business.
- Customer Satisfaction: With a commitment to customer satisfaction, Commercial-Solar.org prioritizes communication, transparency, and responsiveness throughout the entire solar journey, providing peace of mind and confidence in your investment.
Other Information | |
Areas Serving & Zip Codes: | Newark, Jersey City, Paterson, Elizabeth, Lakewood Township, Edison, Woodbridge Township, Toms River, Hamilton Township, Trenton, Clifton, Cherry Hill Township, Brick Township, Camden, Bayonne, Passaic, East Orange, Union City, Franklin Township, Middletown Township, Old Bridge Township, Gloucester Township, North Bergen 08701, 07305, 07002, 07055, 07087, 08753, 07093, 07047, 07111, 08854, 07030, 08861, 08527, 07083, 07728, 08901, 07105, 07104, 08873, 07306, 07470, 08831, 07302, 07003, 07304, 08081, 08816, 08540, 07052 |
---|---|
Services | Commercial Solar Installation
|
Other Information | |
Services | Commercial Solar Installation
|
---|---|
Company Logo: |