SOLAR INCENTIVES

Your system can pay for itself in just a few short years.

Federal, state, and local governments understand the importance of sustainable energy and the high costs associated with traditional power sources. Utility companies can’t afford to maintain their infrastructure costs as homes use more and more power. That’s why, in most cases, utility and tax incentives can save customers well over 50% on the cost of energy.*

Residential Solar Installation In New Jersey

Federal Investment Tax Credit – 26%

Federal Investment Tax Credit – 26%

The solar Investment Tax Credit (ITC) is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The Federal ITC is based on 26% of the homeowner’s cost to install solar. On leased systems, the lessor collects this incentive and passes the savings on to the homeowner! Hurry and take advantage of this credit while it lasts, it is scheduled to completely phase out by 2023.

* This material is for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

State Incentives

Incentives are available in most states. Depending on where your home is located, in addition to the 26% ITC, you may qualify for Renewable Energy Credits that earn you money for excess energy. Your Geoscape Solar Advisor will help determine which incentives you can benefit from. Please view your state below.

New Jersey State Incentives

Federal Solar Investment Tax Credit (ITC) – The 26% federal solar tax credit is available for properties that purchase and have their system installed by December 31, 2022.  In 2023, the solar tax credit drops to 22%. In 2024 it will be fixed at 10% for commercial properties and permanently end for residential properties. 

Net Metering –  New Jersey is a leader in state net metering programs. Net metering allows the electric grid to store the electricity produced by your solar energy system to use at a later time and helps maximize the investment in your system. When your solar panels produce more electricity than your property uses during the day, the unused electricity is sent back to the grid. When your property uses more electricity than your solar panels produce, your property draws electricity from the grid. At the end of your billing cycle, your property is charged for the balance or “net” of what you put into the grid vs. what you took off the grid.

Renewable Energy Credits  – The Board of Public Utilities (BPU) New Jersey’s Clean Energy Program lets property owners earn Renewable Energy Certificates, for every kilowatt-hour (kWh) of solar energy the system creates based on market value.

 Solar Investment Property Tax Exemption – Installing a solar energy system will boost the value of your property but your property taxes won’t go up This tax exemption adds additional value to your property.

Solar Panel System Sales Tax Exemption – All components of your solar energy system are exempt from sales tax.

New York State Incentives

Federal Solar Investment Tax Credit (ITC) – The 26% federal solar tax credit is available for properties that purchase and have their system installed by December 31, 2022.  In 2023, the solar tax credit drops to 22%. In 2024 it will be fixed at 10% for commercial properties and permanently end for residential properties.

Net Metering –  New York State operates an annual form of net metering. Net metering allows the electric grid to store the electricity produced by your solar energy system to use at a later time and helps maximize the investment in your system. When your solar panels produce more electricity than your property uses during the day, the unused electricity is sent back to the grid. When your property uses more electricity than your solar panels produce, your property draws electricity from the grid. At the end of your billing cycle, your property is charged for the balance or “net” of what you put into the grid vs. what you took off the grid.

NY State Solar Energy System Equipment Tax Credit – There is a 25% New York State solar tax credit available for solar energy systems installed in New York State. Maximum of $5,000.

NY-Sun Megawatt (MW) Block Program –  Property owners can qualify for compensation for every kilowatt (kW) of solar energy installed (up to $1,000).

Solar Electric Generating System Tax Abatement (SEGS) – Installing a solar energy system will boost the value of your property but your property taxes won’t go up This tax exemption adds additional value to your property.

Residential Solar Project Sales Tax Exemption – State sales tax exemption for components of residential solar energy system.

 

Connecticut State Incentives

Federal Solar Investment Tax Credit (ITC) – The 26% federal solar tax credit is available for properties that purchase and have their system installed by December 31, 2022.  In 2023, the solar tax credit drops to 22%. In 2024 it will be fixed at 10% for commercial properties and permanently end for residential properties.

Net Metering – Connecticut property owners can access a form of Net Metering (Net Billing) through privately owned energy companies. Net metering allows the electric grid to store the electricity produced by your solar energy system to use at a later time and helps maximize the investment in your system. When your solar panels produce more electricity than your property uses during the day, the unused electricity is sent back to the grid. When your property uses more electricity than your solar panels produce, your property draws electricity from the grid. At the end of your billing cycle, your property is charged for the balance or “net” of what you put into the grid vs. what you took off the grid.

Solar Investment Property Tax Exemption – Installing a solar energy system will boost the value of your property but your property taxes won’t go up This tax exemption adds additional value to your property.

Solar Project Sales Tax Exemption – State sales tax exemption for components of solar energy system.

Residential Solar Investment Program – Connecticut homeowners can qualify for compensation for every watt of solar energy installed (up to $0.46 per watt based on system size).
 

Pennsylvania State Incentives

Federal Solar Investment Tax Credit (ITC) – The 26% federal solar tax credit is available for properties that purchase and have their system installed by December 31, 2022.  In 2023, the solar tax credit drops to 22%. In 2024 it will be fixed at 10% for commercial properties and permanently end for residential properties.

Net Metering – Pennsylvania has a strong net metering programs and allows virtual net metering for property owners with multiple solar sites. Net metering allows the electric grid to store the electricity produced by your solar energy system to use at a later time and helps maximize the investment in your system. When your solar panels produce more electricity than your property uses during the day, the unused electricity is sent back to the grid. When your property uses more electricity than your solar panels produce, your property draws electricity from the grid. At the end of your billing cycle, your property is charged for the balance or “net” of what you put into the grid vs. what you took off the grid.

Renewable Energy Credits  – Property owners can earn Renewable Energy Certificates, for every kilowatt-hour (kWh) of solar energy the system creates based on market value.

Philadelphia Solar Rebate Program –  Philadelphia property owners can qualify for a $200 rebate for every kilowatt (kW) of solar energy installed.
 

Maryland State Incentives

Federal Solar Investment Tax Credit (ITC) – The 26% federal solar tax credit is available for properties that purchase and have their system installed by December 31, 2022.  In 2023, the solar tax credit drops to 22%. In 2024 it will be fixed at 10% for commercial properties and permanently end for residential properties.

Net Metering – Maryland has an annual (April to April) net metering program. Net metering allows the electric grid to store the electricity produced by your solar energy system to use at a later time and helps maximize the investment in your system. When your solar panels produce more electricity than your property uses during the day, the unused electricity is sent back to the grid. When your property uses more electricity than your solar panels produce, your property draws electricity from the grid. At the end of your billing cycle, your property is charged for the balance or “net” of what you put into the grid vs. what you took off the grid.

Renewable Energy Credits  – Property owners can earn Renewable Energy Certificates, for every kilowatt-hour (kWh) of solar energy the system creates based on market value.

Solar Investment Property Tax Exemption – Installing a solar energy system will boost the value of your property but your property taxes won’t go up This tax exemption adds additional value to your property.

Residential Solar Project Sales Tax Exemption – State sales tax exemption for components of residential solar energy system.

Residential Clean Energy Rebate Program (R-CERP) – Maryland residents who purchase and install a residential solar energy system can qualify for a $1,000 rebate.
 

Florida State Incentives

Federal Solar Investment Tax Credit (ITC) – The 26% federal solar tax credit is available for properties that purchase and have their system installed by December 31, 2022.  In 2023, the solar tax credit drops to 22%. In 2024 it will be fixed at 10% for commercial properties and permanently end for residential properties.

Net Metering – Florida property owners can access a form of Net Metering through private utility providers. Net metering allows the electric grid to store the electricity produced by your solar energy system to use at a later time and helps maximize the investment in your system. When your solar panels produce more electricity than your property uses during the day, the unused electricity is sent back to the grid. When your property uses more electricity than your solar panels produce, your property draws electricity from the grid. At the end of your billing cycle, your property is charged for the balance or “net” of what you put into the grid vs. what you took off the grid.

Solar Investment Property Tax Exemption – Installing a solar energy system will boost the value of your property but your property taxes won’t go up This tax exemption adds additional value to your property.

Residential Solar Project Sales Tax Exemption – State sales tax exemption for components of residential solar energy system.

Having a residential solar energy system on your property is known as a capital improvement which adds to your property’s value.

Increased Home Value

Having a residential solar energy system on your property is known as a capital improvement which adds to your property’s value. This means that you can potentially sell your home faster and for more than homes without solar. Your investment in efficient, clean solar power also adds to the tax basis of your home. If you sell the home, this tax basis investment can be deducted from the sale’s price, reducing the amount of the price that is counted as profit. This reduces the taxes taken from the sale and may be able to help you avoid capital gains taxes on appreciation.

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