Rebates are available through the NJ Clean Energy Renewable Energy Incentive Program for homeowners installing 10 kW systems or smaller and for businesses installing 50 kW systems or less. There are limited rebate funds, so apply quickly to reserve your rebate. A list of qualified contractors can be found on the NJCEP website.
The NJ Board of Public Utilities (BPU), which manages NJCEP, is transitioning away from solar rebates to setting up a strong market for Solar Renewable Energy Certificates (SRECs). SRECs are the renewable energy ‘ghost-value' of "carbon not put into the air". Public Utility companies are required to have a certain percentage of energy sales in New Jersey come from solar PV energy. The utilities purchase these SRECs from individual system owners as a way to meet their renewable energy obligations.
The Solar Financing Handbook and Solar Financing Tool (see Related Documents at right) were created by the NJ Green Homes Office (GHO) to be used by any New Jersey resident or business considering a solar photovoltaic installation and to enable you to make an informed decision. The Solar Financing Handbook and accompanying Solar Financing Tool are updated annually. Please note that this is a quick guide and not an in-depth explanation of solar photovoltaics. Topics are covered with the intent to aid in making an initial decision to invest in this technology and includes information on state initiatives, the NJ Energy Master Plan, solar equipment, how to calculate energy production, details on SRECs, federal incentives and power purchase agreements. If you have any questions about this tool, would like to know more about the assumptions used, or have information that will make the tool more accurate, please contact the GHO by email. Updates to this resource will be added to the Related Documents box throughout the year.
Here are several solar programs available through NJ public utilities:
Public Service Electric and Gas (PSE&G)has a solar loan program, where solar PV system owners can receive financing based on expected SREC production. SRECs will be valued at $475 for 10 - 15 years. Interest rates vary for each market segment (6% to 11.11%). The loan is repaid by assigning SREC production to PSE&G and/or through cash payments.
Jersey Central Power & Light (JCP&L) and Atlantic City Electric (ACE) will provide long-term SREC purchase agreements on a competitive basis. Applicants will submit proposals for long-term contracts and pricing at designated times. Long-term contracts will be selected on lowest-cost-first and other criteria. These long-term SREC contracts will allow applicants to receive outside financing based on expected SREC production and a guaranteed SREC purchase price for 10 - 15 years.
Orange & Rockland Electric also working on a solar PV program; it is still under development at this time.
There are substantial federal incentives, which can be found at the Database of State Incentives for Renewable Energy (DSIRE) website. These incentives are further explained in the Solar Financing Handbook and updates.