New Jersey's renewable energy incentives, including those for solar power, wind energy and energy efficiency, have made it one of the fastest growing states for clean energy. A variety of energy tax credits, energy rebates, grants and state and local incentives are available:
Since 2008, New Jersey has waived the fee for local property tax on all renewable energy systems that are used on-site to heat, cool or create general electricity. Viable candidates for this tax exemption include solar PV, wind, geothermal electric, landfill gas, sustainable biomass, hydroelectric, resource recovery, wave, and tidal systems that produce electricity. Two other systems that qualify for this exemption include solar energy and geothermal energy producers.
The best way to receive tax exemption is as follows:
All solar energy equipment (including passive solar design) is eligible for receiving a full sales tax exemption. The current sales tax rate is 7%. Solar energy tax exemptions are also available for energy efficient technologies including fuel cells, biomass energy, photovoltaic and small wind-energy systems. The rebates for these technologies range from $0.15- $4.00 per watt DC.
Geothermal, wind, wave, solar, tidal, sustainable biomass or landfill gas systems are eligible for net metering in New Jersey. The maximum capacity for an individual system is two megawatts. After each billing cycle the customer is given credit for the net excess generated at the utility retail rate. Customers may sell or purchase net excess generation through a bilateral partnership with their electrical or service provider. The customer owns all renewable-energy credit that is correlated to the generated electricity. Customers may take part in New Jersey’s Solar Renewable Energy Certificates program if they have a photovoltaic system and apply to the New Jersey Board of Public Utilities.
Homeowners have the option to use an EEM (energy-efficient mortgage) in order to receive federal loans for financing home operated renewable technologies
Taxpayers are able to file for a personal tax credit of 30% of expenditures including installation and labor costs for solar-electric systems, fuel cells, or solar water heating systems. Geothermal heat pumps and small wind-energy systems are also eligible.