Logo of Vitruvian Energy with overlapping circles forming a flower-like pattern on the right.
Logo of Vitruvian Energy with overlapping circles forming a flower-like pattern on the right.

Solar Incentives for Builders & Homeowners in NJ & NY

New Jersey Incentives: Residential Sector

Builder Incentives:

  1. 45L Federal Tax Credit
    Builders can receive $5,000 per home for homes meeting DOE Zero Energy Ready Home (ZERH) standards.
  2. New Jersey Department of Energy ZERH Program
    Provides an additional $5,000–$6,000 per home, potentially totaling $11,000 in incentives when combined with the federal credit.

Owner Incentives:

  1. Federal Investment Tax Credit (ITC)
    Homeowners can claim a 30% tax credit on the cost of solar energy systems.
  2. Solar Renewable Energy Certificates (SRECs)
    Homeowners earn SRECs for electricity generated, which can be sold to offset installation costs.
  3. Sales Tax Exemption
    Solar energy systems are exempt from state sales tax, lowering purchase costs.
  4. Property Tax Exemption
    The added value of a solar energy system is not taxed.
  5. Energy Efficient Mortgages (EEMs)
    Homes with solar qualify for EEMs, offering buyers increased borrowing power due to reduced energy costs.

 

Commercial Sector

Builder Incentives:

  1. Federal ITC
    Builders or developers can receive a 30% tax credit on commercial solar installations initiated before 2032.
  2. Modified Accelerated Cost Recovery System (MACRS)
    Accelerated depreciation of solar assets over five years, with an option for 100% bonus depreciation in the first year.

Owner Incentives:

  1. SRECs
    Commercial property owners can sell SRECs for additional revenue based on solar energy generation.
  2. Net Metering
    Owners can offset electricity bills by selling excess energy back to the grid.
  3. Utility Rebates
    Programs vary by utility but often include direct incentives for installing solar systems.
  4. Demand Charge Reduction
    Solar systems, especially when paired with energy storage, reduce peak electricity demand, lowering utility costs.
  5. Modified Accelerated Cost Recovery System (MACRS)
    Accelerated depreciation of solar assets over five years, with an option for 100% bonus depreciation in the first year.

New York Incentives: Residential Sector

Builder Incentives:

  1. 45L Federal Tax Credit
    Similar to New Jersey, builders can earn $5,000 per home for energy-efficient new construction meeting ZERH standards.

Owner Incentives:

  1. Federal ITC
    A 30% tax credit on the cost of installing solar systems.
  2. New York State Solar Energy System Equipment Credit
    A state tax credit of 25%, up to $5,000.
  3. NY-Sun Incentive Program
    Reduces installation costs with upfront incentives based on system size, location, and income.
  4. Sales Tax Exemption
    Solar energy systems are exempt from state sales tax.
  5. Property Tax Exemption
    Solar installations are exempt from property tax assessments for 15 years.
  6. Net Metering
    Allows homeowners to earn credits for surplus electricity.

 

Commercial Sector

Builder Incentives:

  1. Federal ITC
    Builders can claim a 30% tax credit for solar installations on commercial properties.
  2. NY-Sun Incentive Program
    Offers upfront financial support to developers based on project size and location.

Owner Incentives:

  1. NYC Property Tax Abatement (PTA)
    A four-year tax abatement for 7.5% of the installed solar cost annually (up to 30% total, capped at $250,000).
  2. Net Metering
    Owners can offset energy costs by sending surplus energy back to the grid.
  3. RECs and SRECs
    Generate additional revenue by selling renewable energy certificates for solar power produced.
  4. Demand Charge Reduction
    Solar installations help lower peak electricity demand costs.
  5. LEED Certification Benefits
    Solar installations contribute toward LEED certification, increasing property value and appeal to tenants.