Commercial Solar Incentives in New Jersey

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

NJ's Successor Solar Incentive Program 

Through the Successor Solar Incentives (SuSI) program, New Jersey commercial property and business owners with solar panel systems can receive rebates for selling renewable energy credits (called SREC-IIs) at $90 per SREC-II to utility companies.  

Sales and Property Tax Exemptions 

New Jersey offers a 100% sales tax exemption for solar system equipment, allowing businesses to save Iowa's 6.625% sales tax. The state also offers a 100% property tax exemption from the added value of a solar system on a commercial building for 5 years. 

NJ's Net Metering Program  

New Jersey's net metering program is available to any customer who generates electricity with their solar system. Through this program, business's can receive credit for any excess energy their solar panels generate to use towards future utility bills, which significantly reduces or even eliminates the monthly electric bill if the system generates enough energy. 

There are several federal solar incentives available to business owners in New Jersey that can be used in combination with the state's existing solar programs. These combined incentives can substantially lower the cost of installing a solar system.

Business Energy Investment Tax Credit (ITC)

The business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in New Jersey may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

New Jersey business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

New Jersey Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

Learn More!

Connect with a local New Jersey installer to see which incentives can contribute to your solar system. 

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