|
| Rebate
Type |
Amount |
| Residential Solar Panel Installation Rebate |
Up to $1.75 per watt; up to 10 kW
|
| Property Tax Exclusion |
100% of the value of a solar panel or renewable energy system is expempt from property taxes. |
| State Sales Tax Exclusion |
Full exemption from New Jersey sales tax
for the cost of the solar panel system.
|
Annual Program
Budget
|
Rebates go fast.
$45 to $55 million per year from 2009 through 2012. |
|
New Jersey Clean Energy Rebate Program
| Incentive Type: |
State
Rebate Program |
| Eligible Renewable
Technologies: |
Solar Panel
Photovoltaics, Landfill Gas, Wind, Biomass, Anaerobic Digestion, Fuel
Cells using Renewable Fuels |
| Applicable Sectors: |
Commercial,
Residential, Nonprofit, Schools, Local Government, State Government,
Fed. Government, Institutional |
| Incentive Amount: |
$0.15 - $4
per watt DC (varies by technology, capacity and applicant type) |
| Maximum
Incentive: |
Varies by
sector for PV, see summary for details;
60% of eligible costs for fuel cells & sustainable biomass up to 10
kW;
30% for fuel cells & sustainable biomass greater than 10 kW;
For wind energy systems, 120% of estimated system performance at a
reference wind speed of 11.4 mph |
| Eligible System
Size: |
No maximum
system size specified, however, rebated capacity is limited.
Output should not exceed 100% of the historical or expected (if new
construction) consumption. |
| Equipment
Requirements: |
Systems
must be new, UL-listed (PV), in compliance with all applicable
performance and safety standards, and must carry a minimum 5-year
warranty on all equipment. |
| Installation Requirements: |
Installation
must comply with all federal, state and local codes; must meet detailed
siting criteria specified in program guidelines |
| Ownership of Renewable
Energy |
Remains
with project owner |
New Jersey
rebates
for solar panel PV systems with a capacity of 20 kW or less will
continue in some form during the 2009-2012 program years, while rebates
for larger systems will be discontinued and transitioned to Solar
Renewable Energy Credits (SRECs). Each time a solar electric
system generates 1000kWh (1MWh) of electricity, an SREC is issued which
can then be sold or traded separately from the power. This makes it
easy for individuals and businesses to finance and invest in clean,
emission free solar power. Further information will be posted as it
becomes available.
|
Financing
Programs
FreeCleanSolar.com
solar panel installers can also provide information about solar panel loans and solar
leasing programs.
PSE&G offers 10 year low interst loan for residential solar panel installation in New Jersey, and 15 year solar panel loans for commerical and multi-family solar panel
installations.
|
Fuel Cell and Sustainable Biomass Systems
|
|
These
systems are currently eligible for incentive levels beginning at $5 per
watt (up to 50% of a system's cost) for systems up to 10 kW in
capacity. Larger systems receive incrementally lower rebate amounts,
with a 30% maximum. (Single-family rebate applications are limited to
the first 10 kW of project capacity.) The rebate schedule is as follows:
|
|
$3.00 per
watt for the first 10 kW for systems greater than 10 kW
|
|
$2.00 per
watt for the next 90 kW of system size
|
|
$1.50 per
watt for the next 400 kW of system size
|
|
$0.15 per
watt for system capacity in excess of 500 kW, up to 1 MW
|
Wind
Energy Systems
|
Effective
beginning with the 2008 calendar year, wind energy systems will receive
rebates based on expected performance rather than nameplate capacity.
The Expected Performance Based Buydown (EPBB) rebate will be calculated
according to the estimated first-year annual energy output, which
itself is based on the estimated 50 meter wind speed at the site, the
proposed tower height, and the performance curve of the proposed
turbine. The per kilowatt-hour ($ per kWh) value of the rebate is
determined by the estimated output as follows:
|
|
$3.20 per
annual kWh for the first 16,000 kWh of estimated energy production.
|
|
$0.50 per
annual kWh for estimated energy production between 16,000 kWh and
750,000 kWh.
|
|
The
incentive is capped at 120% of the of the estimated system specific
performance at a reference speed of 11.4 mph. A performance calculator
tool and a list of eligible wind energy systems will be available
shortly on the program website.
|
|
The
New Jersey Clean Energy Program web site provides all application
materials, complete funding schedule and information about current
incentive levels.
|
New Jersey Solar and Wind
Energy Systems Sales Tax Exemption
|
|
New
Jersey offers a full exemption from the state's 7% sales tax for all
solar and wind energy equipment. This exemption is available to all
taxpayers. All major types solar energy equipment, including equipment
for passive solar design, is considered eligible for the exemption. The
statute directed the New Jersey Division of Energy Planning and
Conservation in the Department of Energy to establish technical
standards for qualifying solar energy systems.
|
New
Jersey Property Tax Exemption for Renewable Energy Systems
| Incentive Type: |
Property
Tax Exemption |
| Eligible
Renewable Technologies: |
Solar
Water Heat, Solar Space Heat, Solar Thermal Process Heat,
Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal
Electric, Fuel Cells, Geothermal Heat Pumps, Resource Recovery, Tidal
Energy, Wave Energy |
| Applicable Sectors: |
Commercial,
Industrial, Residential |
| Amount: |
100% of value
added by renewable system |
In
October 2008, New Jersey enacted legislation exempting renewable energy
systems used to meet on-site electricity, heating, cooling, or general
energy needs from local property taxes. (There is not a state component
to property taxes in New Jersey). Eligible renewable energy systems*
include solar PV, wind, fuel cells, sustainable biomass, geothermal
electric, landfill gas, hydroelectric, resource recovery, wave, and
tidal systems that produce electricity. Systems that produce energy
from solar thermal energy (e.g., solar hot water) or geothermal energy
(e.g., geothermal heat pumps) are also eligible for the exemption. The
exemption may be claimed for all qualified systems installed on
residential, commercial, industrial, or mixed-use buildings as
accessory uses.
|
| In
order to claim the exemption, property owners must apply for a
certificate from their local assessor that will reduce the assessed
value of their property to what it would be without the renewable
energy system. Exemptions will take effect for the year after a
certification is granted. The New Jersey Department of Treasury,
Division of Taxation is required to develop the rules and regulations
necessary to implement this law. |
|
