New Jersey Solar Power Rebates
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| Rebate Type |
Amount |
| Solar Power Installation Rebate |
Program on hold, check back |
| Property Tax Exclusion |
100% of system sales tax |
| State Tax Credit |
None |
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New Jersey Clean Energy Rebate Program
| Incentive Type: |
State Rebate Program |
| Eligible Renewable Technologies: |
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 - $4.10/W 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 |
| Website: |
http://www.njcleanenergy.com/renewable-energy/programs/core-rebateprogram/incentives/core-rebate-program |
Note: By order of the New Jersey Board of Public Utilities (BPU) rebate applications for photovoltaic (PV) systems are no longer being accepted. Projects for applications that have already been accepted but not approved (i.e., those waiting in the queue) will receive rebates as funding becomes available if they meet the program guidelines. Applications are still being accepted under the "SUNLIT" program, which supports solar installations for affordable, multi-family housing through the New Jersey Green Homes Office. In addition, the Solar Renewable Energy Certificate (SREC)-only pilot program is still open for applications. Projects under this program will not receive rebates, but can still receive benefits from the trading and sale of SRECs. Details are available from the Office of Clean Energy website. |
Related to this is the New Jersey “Solar Market Transition”, an effort to shift state support efforts away from rebates and towards Solar Renewable Energy Certificates (SRECs) by 2009. The most recent administrative action on the subject is contained in another order issued September 12, 2007, by the BPU. It is anticipated that rebates for 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 permanently discontinued. Further information will be posted as it becomes available.
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Fuel Cell and Sustainable Biomass Systems
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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: |
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$3.00 per watt for the first 10 kW for systems greater than 10 kW
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$2.00 per watt for the next 90 kW of system size
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$1.50 per watt for the next 400 kW of system size
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| $0.15 per watt for system capacity in excess of 500 kW, up to 1 MW |
Wind Energy Systems
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Effective beginning with the 2008 calendar year, wind energy systems will receive rebates based on expected performance rather than nameplate capacity. The Expected Performance Based Buydown (EPBB) rebate will be calculated according to the estimated first-year annual energy output, which itself is based on the estimated 50 meter wind speed at the site, the proposed tower height, and the performance curve of the proposed turbine. The per kilowatt-hour ($ per kWh) value of the rebate is determined by the estimated output as follows:
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| $3.20 per annual kWh for the first 16,000 kWh of estimated energy production. |
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$0.50 per annual kWh for estimated energy production between 16,000 kWh and 750,000 kWh.
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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. Click here for the latest statistics on the number and types of projects supported through this incentive program.
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New Jersey Solar and Wind Energy Systems Sales Tax Exemption
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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.
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| 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. |
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