New Jersey solar tax incentives being offered are for a limited time. Residents are encouraged to take advantage of them while they still can with the assistance of solar energy company Alliance Solar.
Princeton, NJ -- (ReleaseWire) -- 08/13/2021 --Alliance Solar recently announced that now is a good time for homeowners to take advantage of solar tax credits. In December 2020, Congress passed a bill that extended the Investment Tax Credit (ITC) for two years. At present, solar projects get 26 percent credits and will do so until the end of 2022. This is excellent news considering the credit will drop to 22 percent in 2023. In 2024, the ITC will completely end for residential clients but remain at 10% for commercial ones.
Congresswoman Linda Sanchez pushed for this legislation to bring parity between homeowners and businesses so that homeowners can also reduce their carbon imprint and do their part to address climate change. Homeowners can take advantage of Section 25 D, which makes them eligible for a tax credit based on a set of criteria.
The recent extension by the federal government will allow residents to take advantage of New Jersey solar tax credits before it is too late. With the credits expiring in 2024, there's no time like the present for residents to install solar panels.
According to a recent study, New Jersey consumes more electricity than it generates. This past winter, residents saw tremendous spikes in their electric bills, primarily since Covid-19 has forced people to spend much more time inside the house. Unfortunately, there has been no economic relief for this sudden increase in energy expenses.
Excessive energy bills coupled with the overextension of electricity usage have increased interest in solar energy. As of July 2021, there has been a tremendous push by the state's Board of Public Utilities to encourage residents and businesses alike to get solar power. The new initiative is called Successor Solar Incentive Program (SuSI). It aims to double its solar power by 2026 from 3,655 megawatts by an additional 3,750 megawatts. With federal incentives expiring in 2024, this push is quite ambitious. However, the expiry on federal incentives may encourage homeowners and businesses to quickly take advantage of the tax credit to help save on installation costs.
This state initiative, along with the federal tax credit, spells excellent news for Alliance Power. The time is not only suitable for homeowners to benefit from an upgrade to solar power, but this could provide more opportunity for Alliance Solar to fulfill its mission and vision. New Jersey's governor, Phil Murphy, aims to have 100 percent clean energy by 2050. So whether a federal credit is in place or not, Alliance Solar's future looks bright in terms of providing solar power to the residents of New Jersey.
From now until 2023, homeowners in New Jersey who are interested in taking advantage of tax credits for solar panels in New Jersey can save 26 percent. The average cost to install a solar panel system is $24,416. However, this price may go down substantially over the next few years as hardware costs continue to decrease and supply increases. After applying for the tax credit, this average cost could drop to about $18,068. If this average happens to remain constant over the next few years, then the decrease in federal tax credit to 22 percent will drop the installation costs down to $19,044.
Although this seems like a substantial upfront investment, the good news is that this could be substantially lower depending on the homeowner's roof space. Not only this, but the savings also that the homeowner stands to gain from operating off the grid may be significantly lower than paying for costly electricity. Solar energy use can save $600 to $2,000 in electricity costs annually. If a homeowner manages to save at the top end of this range, then savings can pay off within nine to twelve years of installation.
Homeowners will need to keep in mind that this is a solar energy credit. Therefore, this is meant to offset what they owe in taxes, unlike a rebate meant to put money back into their pockets. However, this is still a great incentive, especially if your taxes are expensive. Homeowners should discuss the details of how the tax credit may apply with a tax professional if homeowners want to gain more clarity on the savings. To claim the credit, a homeowner will need to fill out Form 5695.
Another thing to keep in mind about the tax credit: the homeowner must own the panels to get them. Expenses that a homeowner can claim include the following: solar PV panels or cells, labor costs, wiring, inverters, or mounting equipment, energy storage devices, and certain sales taxes.
With so much support available from the federal government and the major push from the state of New Jersey, it is no wonder that Alliance Solar is encouraging homeowners' solar tax credits in New Jersey. The sooner homeowners get solar panels installed, the better because there is very little time left to take advantage of the federal tax credit. Assuming there are no significant issues with the roof, a homeowner can have solar panels installed by Alliance Solar in one to three days.
About Alliance Solar
Located in Princeton, NJ, Alliance Solar is one of the country's leading solar companies. For over a decade, they have provided solar panel installation services in and around Princeton, New Jersey. Their mission is to solve one of the world's biggest problems by encouraging homeowners to generate their own power and rely less on traditional energy. They specialize in installing solar panels on roofs of residential properties and businesses throughout Princeton and the surrounding areas. For more information about Alliance Solar, visit their user-friendly website.