How Much Does it Cost to Go Solar in New Jersey?
Before the economic downturn, New Jersey was a poster child for
solar energy.
Previously known for pollution – New Jersey has the most industrial
clean-up sites in the U.S. – the state was changing that image, and
fast becoming one of the greenest states in the nation. Legislation
mandated that electrical utilities acquire 20% of their power from
renewable energy sources by 2020. Most states have similar mandates,
but New Jersey set the bar high.
New Jersey’s statewide solar rebate program is intended to help
utilities reach the 20% by 2020 goal, and the program was hugely
successful. Solar panels were popping up everywhere, not only on
rooftops but on parking lots and utility poles. And solar costs in
New Jersey were incredibly low.
Then, in May of 2010, the state rebate program was abruptly halted
when Governor Chris Christie allocated $158 million from the Clean
Energy Fund to help close an $11 billion state budget gap. Since
then, Christie has recommended that mandates for utilities undergo
revisions, calling for 20% budget cuts starting in 2016.
How Much Can You Save on Solar in New Jersey?
Despite all of the recent reversals, you can still achieve
significant savings with solar panel installations in New Jersey.
Not only are New Jersey residents eligible for a federal rebate,
which covers up to 30% of solar panel system installation costs, the
state’s Solar Renewable Energy Credit (SREC) program remains intact.
To compare pricing on solar,
click here.
Most states allow utilities to meet their
mandated green energy goals in part by purchasing excess power
generated by residential solar energy systems. For each annual
megawatt-hour of excess solar energy produced, system owners are
awarded one SREC. New Jersey utilities pay a premium price for the
certificates, as high as $600 to $700 each.
New Jersey also features relatively low costs per watt, at about $5
per watt. New Jersey residents can expect a $20,000 to $40,000 solar
power system to completely offset their electrical needs, and
generate about $3,000 per year in SRECs. This reduces your solar
payback period to a few years or less. Check out a full breakdown of
New Jersey solar rebates for more.
New Jersey’s four public utilities all offer financing programs as
well, including loans that lock in a minimum SREC price,
guaranteeing return for the duration of the loan. Public Service
Electric and Gas Company (PSE&G) offers a loan program that can
cover 40% to 60% of installation costs. Combined with the federal
incentive program, this reduces the upfront costs to virtually
nothing.
While details of the revised state incentive program remain unclear,
the state is expected to make an announcement in October as to what
incentives will be offered in 2012. Residents in New Jersey who are
interested in taking advantage of all the incentive programs would
do well to begin investigating solar contractors, so that they will
be ready to take advantage of all the solar incentives available.
Source:
www.calfinder.com