Across the United States, more homeowners are taking advantage of solar power to help reduce their electricity costs, achieve energy independence, and help the environment. New Jersey residents have the opportunity to take advantage of these same perks.
Residential solar systems can benefit your home. Keep reading to learn more about solar power in New Jersey and how to install solar panels for your home.
The cost of a residential solar system can vary depending on factors such as the size and configuration of your system, the labor and permitting costs, and the component options you choose to include.
The average residential solar system has a cost of about $3 – $5 per watt, with a total cost of between $15,000 and $25,000. However, taxes and other incentives can help you save on a home solar energy system.
One of the biggest factors that will impact the cost of your residential solar system is your setup and the equipment you include. Some pieces are necessary, while others are optional. The staple solar system components include:
You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.
The federal government has implemented financial incentives to encourage people to install solar panels and other green energy infrastructure.
First, the federal government offers a 26% tax rebate to homeowners who install solar panels on their homes. There’s no cap on the credit, but the offer does expire at the end of 2021. However, if you miss the 2021 deadline, the federal tax credit is still available through the end of 2023 at a credit of 22%.
New Jersey also has state-wide measures in place to help homeowners. First, the state offers a sales and property tax exemption for solar systems. You won’t pay sales taxes on your system, nor will you pay property taxes on the value-add to your home.
New Jersey also allows for net metering, where you can sell excess electricity back to the grid.
In addition to the tax benefits, homeowners with solar also save on their monthly electricity bills. As of February 2021, New Jersey residents pay an average of 16.37 cents per kilowatt-hour and an average electricity bill of $106 per month. That’s more than $1,200 of potential annual cost savings.
Solar panel systems start at around $15,000. If you were able to fully maximize your cost savings, you could break even in as little as 12.5 years. But that’s only factoring in the monthly electricity savings — it doesn’t take into account tax credits, rebates, and the property value added to your home.
Installing solar panels can help you reach energy independence. When you reach energy independence, you’re not reliant on the electricity grid to power your home.
Being energy independent comes with plenty of benefits, such as:
Here are some of the things to think about before you purchase a residential solar power system:
New Jersey was an early adopter of solar power and started implementing policies as far back as 1978 to incentivize solar energy generation. Since then, New Jersey has become a national leader in solar energy. The state ranks seventh in the nation for solar generation and is responsible for almost three percent of the country’s solar power.
Solar use in New Jersey continues to grow at impressive levels. Today, solar power makes up over six percent of the state’s electricity. More residential, nonresidential, and utility solar systems are newly installed each year.
What is the life expectancy of solar panels in New Jersey?
Solar panels have a life expectancy of 25-30 years or more. The product lifespan gives you plenty of time to recover your initial investment and continue to earn cost savings for many years.
Are there disadvantages to using solar energy in New Jersey?
Solar energy comes with a significant upfront investment, which can turn some people away. Another possible disadvantage is that solar panels may not be ideal if your roof is worn or shaded.
Is it better to buy or lease solar panels?
Many people lease their solar panels because of the lower upfront investment. But ultimately, this method is not as cost-effective. When you lease, you don’t get to take advantage of the tax credits and exemptions. You’ll have monthly payments as long as you have the solar panels. Finally, you don’t benefit from the property value added to your home.
What percent of New Jersey energy production is solar?
As of the fourth quarter of 2020, New Jersey gets around 6.23% of its electricity from solar power.
[Millenius] / Shutterstock
