New Jersey’s incentives and high power costs make solar energy systems an excellent investment for people living in the state. The 30% federal tax credit can help homeowners save a lot of money. The state also has an incentive called Solar Renewable Energy Certificates (SREC). Residents earn 1 SREC for every 1000 kWhs produced by their solar system. They can sell the SREC and earn revenue for the first 15 years of their project’s life. New Jersey also offers 1-1 net metering. For every 1 kWh exported, residents will earn 1 credit. They can exchange this credit for energy imported from the grid.
How Does PSE&G Work?
The PSE&G is a classic, New Jersey solar loan program. Homeowners and business owners in the PSE&G territory can apply for this program. The PSE&G works by bidding on an SREC price and using that price of SREC to pay off the loan over 10 years. As long as the system produces the expected amount of kWhs every year, the loan payments will never come from you, but from your SRECS.
The program was available from September 24th to October 5th, and it will be back again at some point in the near future. In order to get the PSE&G solar loan, you should contact an approved and reputable solar installer like Green Power Energy. The solar loan has an interest rate of 11.179%, but the SREC price can oftentimes be locked in at 20% higher than the current SREC price. For instance, if the SREC’s going rate is $215, you can request it to repay $300 of your loan. Your chances of approval depending on the timing of your submission and the number of people applying for the loan.
The average solar loan rates are usually around 5%. It’s common to pay a 6% premium on top of that to get higher SREC prices and to avoid coming solar loan fees. If your system and bid are approved, PSE&G will transfer up to 40% of the project cost to your bank account after the system has passed inspection and is commissioned. Aside from the 40%, you will also get the 30% solar tax credit. If you want to install a $30,000 system, you could get it at a net cost of $9,000 at the end of year 1.
Should You Install Solar Panels?
In New Jersey, solar energy systems usually have a payback period of 5 years. Homeowners will get 20 years of free power after repaying the loan. They can earn up to $60,000 over 25 years, which is a huge return on their initial investment. Even if you don’t have enough funds to invest in a solar energy system, you can still take advantage of New Jersey’s lease and loan options that allow you to install a system for $0 upfront. The investment returns may not be as good as purchasing the system with cash, but a solar lease or lean can help you start saving money from day one.
Contact Green Power Energy for an opportunity to use this solar loan in NJ and get the highest prices possible for your SRECS.
GreenPowerEnergy.com | 908.713.9055