New Jersey is the most densely populated state in the country. And with so many people living and working here, it takes a lot of energy for homes and businesses to operate.
For over a decade New Jersey has been a national leader in solar energy development. In addition to saving a tremendous amount off your current energy bills, generous federal and state tax incentives help offset upfront solar system investment costs. New Jersey also has one of the nation’s most robust Solar Renewable Energy Credit (SREC) programs.
The Federal Solar Investment Tax Credit (ITC)
All solar system investments qualify for a 26% federal investment tax credit. This 26% tax credit is available for all solar projects built through 2022 and can be taken the year that construction begins.
Solar Renewable Energy Credits (SRECs)
In July of 2021, the NJ Board of Public Utilities (BPU) announced the creation of the Successor Solar Incentive Program (SuSI). The SuSI program establishes solar renewable energy credits (SRECs) for every megawatt hour (MWh) of energy a system produces.
These credits are paid to the solar system owner and can translate in tens of thousands of dollars annually depending on how large a system they own.
- A typical residential solar system sized at 5kW produces ~ 7,000 kWh of electricity a year. This is equal to 7 MWh which would result in 7 SRECs
- A typical Commercial solar system sized at 500kW produces ~ 700,000 kWh of electricity a year. This is equal to 700 MWh which would result in 700 SRECs
Under the new SuSI program, SREC values differ slightly depending on what type of solar project you have built:
- SRECs for Residential solar systems are worth $90/MWh
- SRECs for Commercial solar systems range from $80-$100/MWh
- SRECs for Community solar systems range from $70-$90/MWh
SREC Values are locked in for 15 years and paid out annually.
Public Entity Adder:
Commercial solar projects sited on public entities such as government buildings and schools are eligible to receive an additional $20/MWh on top of what their SREC value would have been. This means that the range for commercial SRECs on public facilities range from $100-$120/MWh.
To learn more about how you can benefit from solar, click here to be connected with one of our expert solar consultants.