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State Policies and Incentives.

As we look for ways to generate more of our power from clean, renewable sources, state regulators have established rebates, financial incentives, grants, and renewable portfolio standard (RPS) policies.

Economies of solar differ from state to state depending on the local rebates and financial incentives each state offers. Photovoltaic rebates also vary based on system size. For more information on state policies, corporate tax incentives, grant programs and other initiatives currently in place, visit the Database of State Incentives for Renewables & Efficiency.

Renewable Portfolio Standard (RPS)

Twenty-nine states have established renewable portfolio standard (RPS) policies, which require utilities to supply a certain amount or percentage of their electricity from renewable energy sources. New Jersey's Renewable Portfolio Standard (RPS) is one of the most aggressive in the country requiring that the State"s electricity suppliers provide a certain proportion of their electricity from solar power. They must use the Solar Renewable Energy Certificate (SREC) program to meet this requirement.

What are SRECs?

An SREC is a tradable certificate, which represents your environmental contribution as a result of your solar electric production. In order for electric suppliers to comply under New Jersey's Renewable Portfolio Standards (RPS), they may purchase your SRECs in an open market, much like the stock market. Therefore, SRECs are an important tool for monetizing your solar investment.

SRECs are tradable for cash. From the first month your system is operational, it will be generating this additional source of income.

Each time a solar electric system produces 1,000kWh (1MWh) of electricity, a Solar Renewable Energy Certificate (SREC) is issued which can then be sold or traded separately from the power.

SRECs are then purchased by electrical utilities in order to meet a state's Renewable Portfolio Standard (RPS) requirements. SRECs value is quantified by:
(1) The state RPS requirements for which they are purchased,
(2) The value of the state's Solar Alternative Compliance Payment (ACP), and
(3) The supply and demand of SRECs in that specific state. Because SRECs may be produced in one state and utilized in another, their values can vary dramatically.

Selling SRECs

Twenty-nine states have established renewable portfolio standard (RPS) policies, which require utilities to supply a certain amount or percentage of their electricity from renewable energy sources. New Jersey's Renewable Portfolio Standard (RPS) is one of the most aggressive in the country requiring that the State's electricity suppliers provide a certain proportion of their electricity from solar power. They must use the Solar Renewable Energy Certificate (SREC) program to meet this requirement.

This program substantially increases the return on your investment in solar electricity.

Several rebates and tax credits for solar systems are available from the State of New Jersey and the Federal Government.

Federal Tax Credit

Commercial solar projects can take advantage of a 30% uncapped Federal tax credit. To the extent the credit cannot be fully utilized during the current tax year, it can be carried back one year and forward twenty years. This credit is often a critical factor in reducing net system costs for host customers but it requires offsetting taxable income. For certain qualified enterprises that cannot take advantage of the federal tax credit (e.g., tax-exempt entities), we can help structure a financing that indirectly preserves the economic benefits of the federal tax credit for the host customer.

Federal Accelerated Depreciation

Commercial solar projects also qualify for 5-year accelerated depreciation, which is worth about 20% of system cost in the first year for most systems.

Net-Metering

Under net metering, a system owner receives retail credit for the excess portion of the solar electricity they generate. This benefit is mandated by federal law for customers of public electric utilities in the United States. Exact program details vary with each utility, but the general effect is to allow you to bank excess solar power generation for future credit against your utility bills.

Financing

The commercial market for solar systems is driven by available financing of system costs. We have established strategic partnerships with several of the most reputable financial institutions in the world to optimize financial structures, whether under a tax lease, a structured lease, a power purchase arrangement or other forms of financing, our team of financing experts can show you how to maximize the tax and State incentive programs related to solar projects. The financial benefits that result may include NO UPFRONT COSTS and potentially IMMEDIATE AND MATERIAL SAVINGS on your power charges. Please contact us to learn more about our financing solutions.

Residential Solar Rebates

Federal Tax Credit30% cost of system
State of New Jersey$1.75 per watt installed up to 10,000 watts with an energy audit.

Commercial Solar Rebates

Federal Tax Grant:30% cost of system
State of New Jersey$1 per watt installed up to 50,000 watts
Equipment Depreciation:5 Years accelerated
USDA Grants and Loans:Available for specified rural areas based on income