What tax credits, rebates or other incentives are available for solar panels in New Jersey?

New Jersey residents have a lot of incentives to choose from when it comes to solar panels, which are also known as photovoltaic (PV) systems or solar energy systems. One incentive is a Federal Renewable Energy Income Tax Credit equal to 30 percent of the cost of the PV system.

If you purchase your PV system from a New Jersey solar manufacturer, you are eligible for a wide range of in-state incentives, including an exemption from New Jersey sales tax. And the PV system won't increase property taxes for New Jersey residents. However, your property taxes will remain the same. For example, if you are paying $10,000 per year on your property taxes and you install a PV system, you will continue to pay the $10,000.

Last but least, the energy your system produces can be sold as solar renewable energy credits (SRECs) to New Jersey electric suppliers through a SREC tracking system. One SREC equals 1000 kW of energy, and the price per SREC will vary; however, in December 2009, the average price was $566. All of these programs can be found on EnergySavvy.com's tax credit and rebates section by changing the location to a New Jersey zip code, such as 07828, which is the zip code for Budd Lake, NJ.

If you are interested in estimating the cost of a solar panel system, visit InfinitePower.org, and use their Interactive Energy Calculator.