New Jersey Commercial Solar Business Incentives

May 9, 2008

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
   

 

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!

 


 

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

2 Responses to “New Jersey Commercial Solar Business Incentives”

  1. Frank Cervi said

    Question…

    Curious to ask, but how is the solar power typically stored for a residential installation?

    Thank you

    Frank

  2. Dear Frank:

    The excess green electricity not used up by the solar system owner is not stored, but sent back up to the grid. Typically this will mean the green electricity will be used by the neighbors.

    You can also think of using the grid as the storage medium as the solar system owner generates credit in his/her account with the utility company for uploaded electricity.

    There is of course a way to store the electricity in batteries, but usually this option is costly, and unnecessary for those living in areas with reliable power service. For those living in areas with frequent outage, battery storage with back up generator would be a good option to explore.

    Hope this is helpful.

    Alex

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: