Steps to Going Solar in New Jersey

Opening Points:

Our installation of your solar energy system is virtually free and will literally pay for itself through special incentive credits that you will earn just for having a solar system. On top of this free install, you will receive an unconditional $10,000-$20,000 in your pocket just for going solar. You can use this free money on anything you wish: Have us build your dream deck or spend it on anything else you wish. So this means you will receive a free solar system installation, get free money in your pocket, and on top of that you will still save 50%-100% off of your electric utility bill for as long as the solar panels are functioning on your roof. If this sounds like a great deal then please read all of the details you see contained herein as every detail will be explained very clearly.

The information that you will read here is more comprehensive than any other solar installer (just do a google search for proof). Along with our expert installation, this is why you can trust us with your install.

A solar panel system or solar array will increase the equity of your home. And in the current real estate market, it will enable you to sell your home much faster.

Also, remember you will be saving the environment, which is ultimately the best reason, aside from making out on a too-good-to-refuse-deal, to go solar.

Legend:
- W = Watt
- KW = Kilowatt
- KWh = Kilowatt hour
- MW = Megawatt
- MWh = Megawatt hour
- REC = Renewable Energy Credit
- SREC = Solar Renewable Energy Credit
- REP = Renewable Energy Program

Start the process:

Talk with us over the phone as we review an internet air photo of your property. Have your electric utility bill handy to calculate the KWh’s (kilowatt-hours are how your electricity usage is measured) you use. Based upon phone conversation we will then set up an in-home consultation.

Feasibility factors will include shading, seasonal shading, seasonal leaf/debris, south, southeast, or southwest positioning of house, roof space on southwardly side of roof (for every 1KW of system size, approximately 80-100sq/ft of roof space is needed). A 5KW system is the average.

However, even if roof orientation or size isn’t a great fit, a flat docking system for the panels can be built, as long as sufficient non-shaded property space is available.

The 12 step program:

1. We will design a system keeping cost requirements in mind. Power output will depend on customer specifications for amount spent vs. amount saved, taking electric bill and usage into account.

2. We apply for NJ State Rebate.

3. A reply letter from NJ stating 1 of 3 outcomes will soon arrive (aprox 2-4 weeks):

A. Approval for funding. (At this point the optional Home Performance with Energy Star Audit is performed. More on this is mentioned below under the, “rebates, tax credits, and incentives” section).

B. Additional information needed: This is straightened out quickly and sent back in.

C. NJ funding not available in current block (funding is divided evenly at the beginning of the year into 3 equal 4 month blocks). If funding is not available, your application is re-submitted at the beginning of the next block for a very high percentage of approval.

4. If approval is granted, installation of your new solar system will begin (with local/municipal building and electrical permits being obtained before start).

5. Installation is then completed (usually within 1 week).

6. We then request an inspection from the NJ REP Inspector.

7. After passing the NJ REP inspection, we then request local/municipal building and electrical code inspection.

8. After passing local/municipal code inspection/s, we apply for and receive the utility interconnection permission. This grants power sharing or net-metering, how much electricity you produce versus how much you use, between customer and utility company.

9. NJ Up-Front Incentive payment is now approved and SREC’s are now registered.

10. Up-Front Incentive check sent to customer (typically takes 60-75 days to arrive) and the solar system is now referred to the NJ REC (Renewable Energy Credit) Administrator.

11. A REC account is now established to earn and trade/sell.

12. System power goes on to save on energy and earn and trade/sell SREC/REC’s (typically takes 3-4 months from the beginning to system start-up). More about SREC/REC’s below under rebates, tax credits, and incentives section.

Rebates – Tax Credits – Incentives:

- NJ State rebate is currently $1.75/W (watt) of the total system (currently $1.55/W if customer chooses against the Home Performance with Energy Star Audit). This audit is currently only $125 (which can be included with install). It’s a $300 value which comes with up to $1000 in FREE air-seal services.

- Federal 30% Tax Credit to be applied directly against your yearly income taxes. (This is 30% off of total system install including system and labor). For example if your rebate is $5000 and you owe $1000 at year end on your Federal Income Taxes, then you would receive a check for $4000 from Federal Government. Different tax brackets can apply (such as claiming before or after the NJ State Rebate). Ask your accountant for further details.

- Also earn SREC’s, typically valued between $400-$700, for each MWh (megawatt hour) (1MWh = 1000KWh) of produced power. This price will fluctuate slightly as it is traded on the open market. It is currently over $600 with a high of $711 and a low of $450 for last 12 month average. You earn SREC’s for 15 years after which the SREC’s turn into REC’s (typically valued between $25-$50) for the life of the system. (SREC’s and REC’s are credits you earn from your utility company for the electricity you produce from your solar system).

So whats in it for you?

Detailed breakdown on how you’ll benefit by going solar (details will vary from system to system):

- You must first finance full amount of install (state rebate and federal tax credit will arrive not too long after install).

- Say you use1000KWh per month right now (before solar panels) in your home.

- You then install a 5KW (your actual system might differ) solar system for $30,000. (Your actual system might be priced different, as this is a sample price). A rule of thumb is for every 1KW of system size, it will produce 100KWh per month.

- You finance the $30,000 over 15 years with monthly payments at $250 per month (based on 6.37% but will depend on interest rates), using a home equity loan, or PSE&G’s loan mentioned in the “closing points” section, or any other means you choose to obtain the funds.

- You then generate 500KWh per month (this figure might vary) with your new solar system.

- You then earn approximately 1 SREC every 2 months (this also can vary according to your system), which you then trade/sell for approximately $400-$700 (currently valued at over $600). Therefore paying the 2 monthly loan payments of $500 with the SREC you have earned. As you can see the loan pays for itself and any money that is leftover from the SREC amount is yours free and clear.

- Your NJ rebate then arrives for a total of $8,750 ($1.75 times 5000 for a 5000W system). Remember NJ pays $1.75/W, and since it’s a 5KW (1KW = 1000W) system, it’s a total of 5000W.

- You then receive your federal 30% tax credit of $9000 (30% of $30,000 total).

- So now you have a loan which will pay for itself over the life of the loan and $17,750 in your pocket to do with as you wish. And on top of all that you will save at least 50% off of your electric utility bill for the life of the system (because instead of previously used 1000KWh per month, you are now only using 500KWh per month due to the solar electricity generated by your system).

- Also system is property tax free and NJ state sales tax free.

- Between the rebate/s, tax credit/s, SREC’s/REC’s, and free energy produced, your total system payback is usually only 3+ years, should you decide to repay your loan early as opposed to letting it pay for itself over course of loan.

- After the Home Performance with Energy Star Audit, you can also choose to let us perform the energy savings recommended for typically an additional 30% in energy savings.

- The solar panels we recommend carry a 25 year manufacturers warranty along with our install warranty of 5 years, along with the power inverter typically manufacturer guaranteed for 10 years.

- After 15 years your loan is paid off, by using your SREC’s all along to pay for loan, at which time your SREC’s switch over to REC’s.

Closing Points:

You are more than welcome to do some more research on top of what has been mentioned. www.njcleanenergy.com is the official NJ State website containing all the information your heart can desire about renewable energy. www.energystar.gov is the official energy star website (there are also many other rebates listed including up to $1,500 for different energy efficient home projects such as doors, windows, siding, roofing, insulation…) with lots of great info as well. www.dsireusa.org is the official site, listing every state and federal rebate and credit available. An example of an SREC trading firm can be viewed at www.srectrade.com in addition to having info on the NJ clean energy site above.

Act now! Have us install your solar system. Keep in mind the amount of money NJ will allot towards its Solar Renewable Energy Program is not guaranteed from year to year. The 30% Federal Tax Credit, on the other hand, expires in 2017.

PSE&G also currently has a 10 year 6.5% solar loan program which locks in a basement price (price can’t go below this) for an SREC at $475. (But they still award you a higher price if the SREC value is currently trading higher). With this loan they accept SREC’s as direct payment for the loan instead of having to trade/sell your SREC’s on the open market in order to pay for your loan. Interest rates might be lower with other banks though. Check out www.pseg.com/solarloan for more info. If you have a different utility company they might offer similar loans as well.

Systems can’t exceed 10KW for rebates.

by Campbell’s Construction

If you are looking for a professional New Jersey Solar Panel Contractor, please call us today at 732.623.9790 or complete our online request form.