Climate change continues to be one of the most serious threats facing modern society. In the fight to slow climate change, renewable energy alternatives have gained a lot of traction, both in popularity and technological investment. Specifically, solar power has become increasingly competitive with natural gas and oil. With progressive solar power projects, New Jersey is one of a few states leading the renewable revolution. If you are considering switching to solar in New Jersey, here are some things to consider.
New Jersey is one of a handful of states that have installed over a gigawatt in solar panels. The state is taking a lot of initiative to incentivize solar investments for commercial and residential buyers alike. Some of the key incentives New Jersey offers solar investors include net-metering, a Solar ITC New Jersey, and renewable energy certificates. These incentives make solar projects more appealing and lucrative to investors.
Solar ITC and New Jersey’s Tax Credit Policy
In efforts to make renewable projects more accessible and financially feasible for the population, many states have created a federal solar investment tax credit as an incentive. New Jersey’s ITC policy is one of the most progressive policies available nationwide. In New Jersey, residents who are investing in solar panels can use an ITC to bring down the overall cost of their project by 26%. The savings you receive from an ITC comes in the form of a tax return on your federal income tax.
One of the drawbacks of investing in solar has been that solar panels produce power during the time of the day when homeowners are typically at work and therefore they can’t use all of the energy they are producing. The net-metering policy allows solar producers, residential or commercial, to sell back their excess energy to their utility. The policy has provided a great solution to the “wasted energy” dilemma that once plagued solar power.
Renewable Energy Certificates
To offset their carbon footprints, many large companies have developed ambitious plans to go carbon-neutral. At the core of these plans are purchasing Renewable Energy Certificates. Solar producers can sell the energy they produce to these companies in the form of RECs. For every megawatt-hour of energy a solar producer generates, the company acquires one REC. This is a great way for solar producers to be players in the energy market.
Increasingly, solar projects are becoming economically viable. If you live in New Jersey, you should consider investing in solar energy.