For many years, the cost of investing in solar at $5 per watt was not economically viable. In recent years, huge improvements in solar technology have driven the cost down to $2.50 per watt, positioning solar investments to be competitive in the current energy market. New Jersey is one of the best places in the country to invest in solar due to the combination of the tax credits, net metering, and other incentives available to investors. If you are considering solar investment New Jersey, here are some things to consider.
The Solar Boom: The Rapid Decline in Solar Prices
Over the past decade, the rapid decline in solar prices has accelerated the proliferation of solar panels into the energy market. A once highly expensive green alternative has grown to hold a competitive chance against traditional fossil fuels. Behind the solar boom are the improvements in efficiency, battery storage, and installation costs of solar panels.
The Solar Market in New Jersey
In New Jersey, it is possible to buy a top-notch solar power system for approximately $2.80 per watt before government incentives. If you have to finance your solar project, the price is closer to $3 per watt. After government incentives, the price of installing solar panels often goes down to around $2.50 per watt with a payback period of approximately 6 years or less. This quick payback period offers solar investors a great return on investment. Additionally, the incentives in New Jersey for solar investors increase the appeal for investors. There are many reputable installers in New Jersey available to provide consultation on the best solar project for your home.
Solar Incentives: Net Metering
Throughout the day solar panels typically produce more energy than the average home requires. This excess energy is sold to your utility in an exchange known as net-metering. Net-metering means you are paid or credited for your contribution to the grid by your utility.
Solar Incentives: Tax Credits
One of the great advantages of solar investments is the solar investment tax credits (ITC) provided by the government. The tax credit varies by state, but New Jersey boasts one of the best tax credits, equivalent to 26% of the system costs involved in installing solar panels.
As climate change continues to threaten the fragility of the current energy market, solar power will continue to infiltrate the grid. Solar investments are a great option for lowering your energy costs while helping the environment.