Solar Power - Financing
The State of New Jersey has many finance vehicles, tax
rebates, as well as the Solar Renewable Energy Certificate
Program.
Click here to visit the New Jersey Incentives for Renewables and
Efficiency.
Tax Credit!
Congress Extends Solar Investment Tax Credit through 2016
Passage of the Emergency Economic Stabilization Act of 2008
included the most sweeping federal legislation for solar ever
enacted. While the eight year extension of the solar Investment
Tax Credit was lost among other headlines, it is the result of a
focused, strategic two-year campaign.
Key provisions in the solar ITC are:
- The 30% tax credit for residential and commercial solar
installations is extended through 2016.
- The $2,000 cap on the credit is eliminated for
residential solar electric installations placed into service
after December 31, 2008.
- Utilities can now benefit from the tax credit.
- Businesses and individuals who are Alternative Minimum
Tax filers can claim the credit.
- The bill authorizes $800M for clean energy bonds, some
of which are expected to support solar powered generation
facilities.
According to an economic study released by Navigant
Consulting in September 2008, extending the solar ITC by eight
years will generate $325B in private investment and create
440,000 permanent jobs in the solar industry. The report also
predicts that by 201 6 installed solar capacity in the US will
total 28 GW, the equivalent of putting 4 kW arrays on 7 million
homes. With dark days forecast as a result of the US financial
crisis, Congress at least seems to have finally seen the light.
Sales Tax
New Jersey Statutes
TITLE 54. TAXATION
SUBTITLE 4A. SALES AND USE TAXES
CHAPTER 32B. SALES AND USE TAX ACT
N.J. Stat. - 54:32B-8.33 (2007)
- 54:32B-8.33. Solar energy devices or systems
Receipts from sales of solar energy devices or systems designed
to provide heating or cooling, or electrical or mechanical power
by collecting and transferring solar-generated energy and
including mechanical or chemical devices for storing solar
generated energy are exempt from the tax imposed under the Sales
and use Tax Act. The Director of the Division of Energy Planning
and Conservation in the Department of Energy shall establish
standards with respect to the technical sufficiency of solar
energy systems for purposes of qualification for exemption.
Sales Tax
What is the Solar Renewable Energy Certificate
(SREC)Program?
SREC stands for Solar Renewable Energy Certificate and is a
tradable certificate that represents all the clean energy
benefits of electricity generated from a solar electric system.
Each time a solar electric system generates 1,000kWh (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.
The New Jersey SREC Program provides a means for SRECs to be
created and verified on your behalf. The New Jersey Clean Energy
website facilitates the sale of SRECs to electric suppliers who
are required to invest in solar energy purchase SRECs under New
Jersey's Renewable Portfolio Standards (RPS). This requirement
increases each year, so that SRECs from the equivalent of a
total of 90MW of solar electricity will be required by 2009.
That's enough electricity to power approximately 8,000 homes!
All Solar system owners in New Jersey with grid-connected
generators can participate in New Jersey's SREC Program. You
must first register for an electronic account at
NJCleanEnergy.com and you will be able to list them for sale
before listing SRECs on the bulletin board.
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