SolarReviews | New Jersey Solar Power Rebates and Incentives

Rebates, Tax Credits and incentives for home solar power panels in New Jersey

New Jersey has one of the most advanced and supportive policy environments for solar power in the country. They have arguably the most aggressive solar carve out as part of their renewable energy portfolio standard requiring 442 GWh in 2012 increasing incrementally up to 5,316 GWh by 2026. This aggressive target has been supported by the adoption of alternative compliance payments that are relatively high and which have to be paid by utilities if they do not procure the requisite amount of solar REC's. Given that one REC is equivalent to 1 MWh, and that you get roughly 1 REC for each kilowatt of solar panels you install, then the 2012 standard requires 442,000 kw's of solar to be working or 442 megawatts. 596 megawatts must be installed by the end of 2013 and 1150 megawatts must be installed by 2016. At the time of writing over 700 megawatts of solar power had already been installed meaning the SREC market is in surplus and SREC prices have fallen to around $300. Still even at this SREC price it would still give the owner of a 5 kw solar electricity system an annual income of $1,500 per year on top of the power savings a system would give them. Underpinning the value of solar Rec's in New Jersey is the following alternative compliance payments:

  • EY 2012 :$658 per MWh
  • EY 2013: $641 per MWh
  • EY 2014: $625 per MWh
  • EY 2015: $609 per MWh
  • EY 2016: $594 per MWh

Net Metering of solar power systems in New Jersey

New Jersey provides net metering for all solar systems at a 1 for 1 retail power rate but excess credits at the end of the year are only paid for at the avoided fuel cost rate. Well if you are looking at installing solar power in New Jersey you are lucky, as you have one of the best overall package of incentives to get you making your own power. Don't wait for the incentives to be reduced, click "here" and get some quotes from local solar professionals.

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