New Jersey Commercial Solar Business Incentives

2008 Commercial Business Incentives:

• 30% Investment Tax Credit 

• IRS Modified Accelerated Cost Recovery System (MACRS)

• New Jersey Solar Renewable Energy Certificates (SRECS)

 

The Basics of Solar Electricity	The Economics of Solar Power
Sunshine is an unlimited resource that comes to you free of charge, delivered to your home with no monthly bills	The federal investment tax credit allows for 30% of a system’s cost to be deducted from any federal taxes due and has no cap  for commercial installations.  $2000 cap applies to residential.
Solar panels convert sunlight to DC power; inverters convert DC power into AC electricity	Electric rates continue to rise – 2008 increases are +12.2%
Causes no pollution, uses no fossil fuels and is very cool	MARCS or 5 Year Accelerated Depreciation on solar equipment for commercial installations
Solar energy is  simple and silent with no moving parts	Electric production value > $0.15 per Kwh avoided cost
Reduces or eliminates your electric bill. Your system continues to produce electricity for many years to come	BONUS!  Solar Renewable Energy Credits (SRECs) earn you additional money every year – for 15 years through 2020
No need for batteries – simply use the utility company’s grid for electric power storage	An investment in a solar electric system is not only economically sound, but also environmentally friendly.  Green is good for buisness.
Panels warranted for 25 years, DC to AC inverter warranted for 10 years	To produce electricity power companies generate thousands of pounds of pollution

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The Rising Cost of Electricity

June 1, 2008 – PSE&G Rate Increase 12.1%

June 1, 2008 – JCP&L  Rate Increase 13%

With the rising cost of fuel oil and natural gas, the power companies have announced these increases to cover their costs to produce electricity for resale.  A solar system on your roof, generating all or part of the electricity you use, would greatly reduce the impact of these increases on your monthly budget.

Stop Depending on the Utility Companies – Produce Your Own Electricity

A solar electric system will not reduce the amount of fuel oil or natural gas you use to heat your home, but it will reduce the amount used by your electric company to generate electricity for resale.  By generating your own electricity, you will reduce the amount you purchase from the utility company, thereby reducing what they need to generate.  It’s truly a win-win for everyone!

 

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Financing a System

Rebates and credits for solar systems and renewable energy are currently available from both the State of New Jersey and the Federal Government.

Residential Rebates:

State of New Jersey                        Closed in December 2007, pending Clean Energy Bill

Federal Tax Credit                          Up to $2,000

Commercial Rebates:

State of New Jersey                       Closed in December 2007, pending Clean Energy Bill

Federal Tax Credit                         30% of System

Equipment Depreciation                 5 Years Accelerated

USDA Grants and Loans               Available for specified rural areas

With available rebates and tax credits, your out-of-pocket costs are approximately one-third the cost of your system.  However, the return on your investment can be 15% or more.  Return on your investment comes in two forms.  First is the reduction in your electric bill.  A solar system can reduce your bill by 50% or more, depending on its’ size and your usage.  Second is the sale of SRECs (Solar Renewable Energy Credits) back to the utility companies.  This value varies depending on supply and demand. For more information about NJ commercial incentive program you may email george@hbsadvantage.com. Hutchinson Business Solutions…..Creating Opportunities Today…….Providing Savings for Tomorrow.  Visit us on the web www.hutchinsonbusinesssolutions.com