Solar in New Jersey usually averages between $11,000 and $15,000 depending on panel quality and quantity. Note that federal tax credits for 2022 and 2023 can decrease that cost by over 20% for many homeowners.
Additionally, property owners should consider any interest costs for leasing or financing those panels which should be factored into the total project cost.
However, note that solar panels are exempt from state sales tax. Consequently, when figuring your solar panel installation cost, you don’t need to figure additional taxes! This exemption can make solar more affordable for property owners overall.
Solar energy works anywhere there is sunlight! The key to producing enough energy to make your investment worthwhile is to ensure your panels get maximum sun exposure. For example, your solar panel installer might suggest trimming back overgrown tree branches in order to maximize the production of the system.
Also, it’s vital that you rely on a quality installer who will angle those panels as needed for sun exposure. Lastly, a property owner should ensure panels are clear of debris year-round. Many solar panel owners invest in specialty brushes with telescopic handles, to sweep debris off the panels. Additionally, just spraying them down with a garden hose on occasion is often sufficient if regular rainfall is not getting the job done!
With this in mind, remember that solar panel energy production does fluctuate throughout the year. Your panels will produce less energy on cloudy or overcast days than in sunny weather. However, most solar panel owners find that they produce enough energy to make their investment worthwhile. Your solar installer should help you come up with a design that produces your usage needs across the entire year so that you can be prepared for months of underproduction.
The short answer is yes, you can sell electricity back to the grid in New Jersey! Net metering is the process of selling solar energy back to local utility companies.
How does this work?
First, note properties with solar are still connected to the grid and utility company. Second, a property’s meter records that power usage, so the power company can prepare your bill. If your home is not connected to an upgraded smart meter, your installer should handle that for you so that your meter will be able to read production and consumption data.
Next, a contractor connects your solar array to this wiring and your property’s meter. Lastly, as those panels produce power it is both used to power the home and send also to send excess back to the grid. The meter keeps track of the flow of power back and forth to the grid across the hours, days and weeks of the billing cycle. You’re then credited for any power produced by those panels and sent back to your utility company.
In turn, properties with solar panels still receive a bill from their utility or power company. However, that bill reflects a credit for the power produced by their panels. Consequently, your power bill is lowered drastically or even eliminated when you opt for solar panel installation!
Solar panels often increase home values. The national average value increase is usually by about 4%, but the average in NJ is even higher at 9.9%. That translates to $9,900 for every $100,000 in current values.
Additionally, note that New Jersey offers a property tax exemption for solar panels. What does this mean? Simply put, you are exempt from paying taxes on that increased value, so you enjoy that added equity without an increased tax bill.
As an example, suppose your property was valued at $450,000 before your solar array installation. Then, its value increased to $490,000 with solar panels. In turn, you would only pay property taxes on that original $450,000 valuation. There are many incentives for going solar in NJ that make it a no-brainer!
Solar in NJ offers many benefits and makes an excellent investment for a variety of reasons. First, note that using solar means reducing the need for fumes and emissions produced by power plants. Second, consider your energy cost savings with solar panels! You can upgrade or switch to electric appliances or not need to worry about skyrocketing energy costs with a solar array.
Also, note that solar panel installation is very labor intensive. In turn, choosing solar installation means creating jobs and stimulating your local economy. Purchasing solar panels also means putting money back into the solar industry. In turn, companies will invest more in better technology and manufacturing techniques, also creating jobs.
Along with reducing fumes and emissions, consider that using solar means less reliance on coal and other fossil fuels. Harvesting these materials often includes blasting or other harsh mining practices. Consequently, solar is healthier for the environment in more ways than one!
Solar power is right for most properties in the state. However, you might reconsider solar if your home’s roof is quite small. If so, it might not offer enough space for all the solar panels you need for your energy consumption. Also, ensure that the roof also gets adequate sun exposure for maximum solar production!
Additionally, note that solar panel arrays typically need disassembling before you can perform roof repairs. In turn, it’s vital that you schedule needed repairs before installing solar panels. In some cases, a property owner might even consider full-scale reroofing before solar panel installation. You should ask your solar company if they can include roof repairs with your project so that you can benefit from the tax credit for those expenses as well!
Lastly, note if your energy consumption justifies the solar panel cost. If you don’t have much electric usage and don’t use home appliances often, your cost savings might not justify solar panel installation costs. However, most property owners find that solar panel arrays are an excellent investment. Even if you only save a few hundred dollars every year, solar offers so many benefits that it’s a great choice for area property owners. Many consultations are free and are no obligation so getting the information to make the best decision for your home is simple.
Alliance Solar is happy to bring this information about solar in NJ to our readers. Hopefully you found it useful and have decided to invest in solar! If so, reach out to our New Jersey solar consultants. We offer FREE virtual consultations and are happy to explain current financial incentives. To find out more, schedule a consultation today.
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