{"id":204,"date":"2022-09-30T14:36:31","date_gmt":"2022-09-30T14:36:31","guid":{"rendered":"https:\/\/coredevprod.wpengine.com\/?page_id=204"},"modified":"2023-08-14T17:05:05","modified_gmt":"2023-08-14T21:05:05","slug":"new-jersey","status":"publish","type":"page","link":"https:\/\/www.coredevusa.com\/incentives\/commercial-solar-incentives\/new-jersey\/","title":{"rendered":"New Jersey"},"content":{"rendered":"\t\t
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New Jersey Commercial Solar Incentives<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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NEW JERSEY is a solar energy leader in the United States<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Incentives can translate into significant savings for commercial solar installations.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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New Jersey continues to lead the nation in solar market growth, thanks to lower costs, solar grants, tax credits, and state incentives. By 2030, approximately 50% of New Jersey’s electricity is expected to come from clean renewable energy sources, with solar energy increasing from 7% in 2020 to 34% of New Jersey\u2019s electricity by 2050.1<\/sup><\/p>

Renewable Energy Certificates (RECS)<\/strong><\/p>

The environmental attributes of solar energy are monetized through marketable units called Renewable Energy Certificates (RECs) – with a single REC created with each MWh of electricity generated.<\/p>

In New Jersey, RECs are valued currently in what is referred to as the Successor Solar Incentive (SuSI) program, with a fixed 15 year-long value depending on the project type and size (see table below). For example, businesses that install a large net metered solar system on their rooftop or carport receive $90 per MWh, while a large net metered ground mounted solar system only receives $80 per MWh.<\/p><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Solar Installation Type<\/th>System Size (MWdc)<\/th>Proposed Incentive Value2<\/sup><\/th>\n<\/tr>\n<\/thead>\n
Net Metered Residential - all types<\/td>Any size<\/td>$90<\/strong><\/td>\n<\/tr>\n
Small Net Metered Non-Residential located on Rooftop, Carport, Canopy and Floating Solar <\/td>< 1 MW<\/td>$100<\/strong><\/td>\n<\/tr>\n
Large Net Metered Non-Residential located on Rooftop, Carport, Canopy and Floating Solar<\/td>1 MW to 5 MW<\/td>$90<\/strong><\/td>\n<\/tr>\n
Small Net Metered Non-Residential Ground Mount<\/td>< 1 MW<\/td>$85<\/strong><\/td>\n<\/tr>\n
Large Net Metered Non-Residential Ground Mount<\/td>1 MW to 5 MW<\/td>$80<\/strong><\/td>\n<\/tr>\n
LMI Community Solar<\/td>Up to 5 MW<\/td>$90<\/strong><\/td>\n<\/tr>\n
Non-LMI Community Solar<\/td>Up to 5 MW<\/td>$70<\/strong><\/td>\n<\/tr>\n
Interim Subsection<\/td>Any size<\/td>$100<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The NJ SuSI program funding will continue until the capacity allocation is used up, so businesses should not wait to get started with a solar investment.<\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\t\t1<\/sup> Source: https:\/\/www.seia.org\/sites\/default\/files\/2021-09\/New Jersey.pdf<\/a>
2<\/sup> Source: Source: New Jersey Board of Public Utilities (NJBPU) Order dated July 28, 2021.<\/a><\/small>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Federal Investment Tax Credit (ITC)<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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An incentive program that lowers commercial solar installation costs for New Jersey businesses. Under the Federal ITC program, businesses can receive a 26% tax credit for the installation of a solar project.<\/p>

Please note, businesses should start commercial solar project construction before the end of 2022 to maximize financial tax credit incentives and savings.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Net Metering<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The utility billing function, where the electricity utility credits a business with solar for the excess solar electricity they generate and return into the grid \u2014 for example, on a sunny summer day when solar generation exceeds the consumption of the building.<\/p>

Businesses can use these net metering credits towards a future billing period, providing greater flexibility, increased utility bill savings, and a shorter solar payback period or higher ROI.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Community Solar Energy Pilot Program<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Residents and businesses virtually connect to a solar installation within their local utility service territory. This program benefits consumers usually excluded from the solar market (renters, shaded property, lack of roof control).<\/p>

Property owners can sell or lease their property to solar developers who install and maintain the community solar farms anywhere in New Jersey, regardless of the area\u2019s previous function.<\/p>

In fact, New Jersey community solar programs are more likely to approve solar sites that repurpose or improve properties such as landfills, brownfields, condemned coal mines, and degraded lands.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Brownfields Redevelopment Incentive Program<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Provides a tax credit of up to 40% or a maximum of $4 million to eligible projects. The program ends in 2027 and there is a cap of $50 million that can be awarded annually. Funding through the program will be granted through a competitive application process.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Other New Jersey Incentives<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Sales Tax Exemption<\/strong> – 100% sales tax exemption on solar equipment.<\/p>

Property Tax Exemption<\/strong> – 100% local property tax (no state property tax) exemption.<\/p>

Assessment of Farmland Hosting Renewable Energy Systems<\/strong> – Assesses solar on agricultural land as farmland (no change in taxes).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Learn more about New Jersey Commercial Solar Incentives<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Fill out the form below to receive access to the New Jersey Commercial Solar Incentives document.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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