Utility and Tax Incentives
Federal, state, and local governments understand the importance of sustainable energy and the high costs associated with traditional power sources. Utility companies can’t afford to maintain their infrastructure costs as homes use more and more power. That’s why, in most cases, utility and tax incentives can save customers well over 50% on the cost of energy.*
*Ask your representative about which incentive you’re eligible to receive. Please consult a tax advisor on your ability to claim these nonrefundable tax credits.
Federal Investment Tax Credit – 30%
The solar investment tax credit (ITC) is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The federal ITC is based on 30% of the homeowner’s cost to install solar from 2022 to 2032. On leased systems, Sea Bright Solar collects this incentive and passes the savings on to the homeowner. Don’t wait; prices for solar equipment are on the rise!
State Incentives
Net Metering – New Jersey is a leader in state net metering programs. Net metering allows the electric grid to store the electricity produced by your solar energy system to use at a later time and helps maximize the investment in your system. When your solar panels produce more electricity than your property uses during the day, the unused electricity is sent back to the grid. When your property uses more electricity than your solar panels produce, your property draws electricity from the grid. At the end of your billing cycle, your property is charged for the balance, or “net,” of what you put into the grid vs. what you took off the grid.
Renewable Energy Credits – The Board of Public Utilities (BPU) New Jersey’s Clean Energy Program lets property owners earn Renewable Energy Certificates for every kilowatt-hour (kWh) of solar energy the system creates based on market value.
New York State Tax Credit – 25%
New York State offers homeowners a dollar-for-dollar reduction in the income taxes that a person claiming the credit would otherwise pay. The state tax credit is based on 25% of solar’s cost to the homeowner, limited to $5,000. If you can’t claim the credit in the first year, don’t worry; it will roll over for 5 years!
NYSERDA – Financing / $0.20 per kilowatt
Through the NY-Sun Program, the New York State Energy Research and Development Authority (NYSERDA) provides financing options and financial incentives for the installation of new grid-connected solar systems.
In New York & New Jersey City, a cash grant from NYSERDA of 20¢ per watt lowers the elevated cost of installing solar. The installation of a 7kW solar system could earn a $1,400 deposit from the state! This incentive, once $1.00 per watt, will continue to decrease as more people install solar systems. Sea Bright Solar collects this grant from NYSERDA directly, reducing your cost to install solar.
California Incentives
California offers state and local incentives for going solar. One California incentive is the Self-Generation Incentive Program (SGIP), which offers rebates for buying and installing a solar battery along with a rooftop panel system. It varies by utility and battery storage capacity. PG&E, SCE, and SDG&E customers may be eligible for this rebate, which can be as high as $1,000 per kilowatt-hour (kWh). Incentives vary by utility company and location. We will help you attain all of the incentives your project qualifies for.
Property Tax Exemption – 100% through 2024
Installing solar panels on your home increases its value by up to 20 times your annual energy bill savings. We don’t think you should be penalized for your sustainable decision, and many state legislators agree! Until the end of 2024, new solar installations will be subject to no additional property taxes based on their assessed value.
Increase Home Value
Having a solar energy system on your home is known as a capital improvement that adds to your property’s value. This means that you can potentially sell your home faster and for more than homes without solar. Your investment in efficient, clean solar power also adds to the tax basis of your home. If you sell the home, this tax-based investment can be deducted from the sales price, reducing the amount of the price that is counted as profit. This reduces the taxes taken from the sale and may be able to help you avoid capital gains taxes on the appreciation.
