Federal Solar Investment Tax Credit (30%) Buy a new home solar system, and you will be eligible for the 30% federal tax credit. A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. This credit also applies to energy storage systems that are charged by your solar system.

Successor Solar Incentive (SuSI) Program The Successor Solar Incentive Program is a production-based incentive that pays you a fixed rate for each kilowatt-hour your solar system produces. It replaced the popular Solar Renewable Energy Credit (SREC) program.

Net Metering Net metering is a program that requires your electric company to purchase excess electricity your solar panels produce. For example, your system may produce more electricity on a typical sunny day than your home consumes. When solar production exceeds usage, the utility meter will “spin” backward and provide you with credits. These credits can then be used when the solar system is not producing electricity, such as at night. In New Jersey, when your solar system produces more electricity than you use, you will be compensated at the full retail value of the electricity. The policy applies to all utilities regulated by the Board of Public Utilities.

New Jersey Property Tax Exclusion Adding a solar energy system to your home will not increase your property taxes.

New Jersey Sales Tax Exemption In New Jersey, no sales tax will be added to the purchase of your solar system.

This guide provides an overview of the different federal, state, and local incentives available to those interested in residential solar. It does not constitute professional tax advice or other professional financial guidance. This overview should not be used as your only source of information. Other sources should be consulted when making purchasing, investment, and tax decisions; or while executing other binding agreements.