Solar Rebates and Incentives Explained
Whether you’re ready make the switch to solar now, or just in the info-gathering stages, it’s important to know what rebates and incentives are available to you. Because after all, saving money is always a good thing, especially when you’re saving the environment at the same time!
To help you understand what rebates and incentives are available to you, we’ve put together a summary below, separated into Pennsylvania and New Jersey. Why? Because the rebates and incentives differ from state to state. Find your state below, and start learning how much money you can save just by applying these discounts!
PENNSYLVANIA
The Pennsylvania Sunshine Solar Rebate program provides state incentives which, added to the Federal 30% tax credit and Solar RenewableEnergy Certificates (SRECs) make solar panels an especially good investment in Pennsylvania.
The Pennsylvania Sunshine Rebate program is structured to decline over time at specific levels, and is currently at level 4 of 4. With electricity regulation lifted and anticipated increases in electricity costs, this is a great time to convert to a solar electric system.
Federal Income Tax Credit
30% of the system cost as a tax credit
PA Sunshine Solar Rebate
$0.75 per watt, up to 10kW
E.g. 3.5kW system will receive a $2625 rebate
SRECs
Earn 1 SREC every time your solar system generates 1000kWh.
1kW of solar produces approximately 1.3 SRECs every year.
1 SREC is currently valued at $180
SRECs can be sold for 15 years from the time the system is installed
SREC income is tax-free
NEW JERSEY
Thanks to an impressive Renewable Energy Portfolio Standard (RPS), New Jersey has catapulted itself to the second largest solar market in the_ country, behind California. As mentioned in our recent post about SRECs, these credits provide an outstanding opportunity for homeowners looking to install a PV solar system. Although there is no State rebate, the healthy and stable SREC market in NJ has driven payback times down past PA, creating an irresistible investment opportunity for people looking to make the switch to solar.
With an abundance of sunshine and generous incentives, New Jersey is the best state on the east coast for going solar. These important incentives are listed below:
Federal Income Tax Credit
30% of the system cost as a tax credit
SRECs
Earn 1 SREC every time your solar system generates 1000kWh.
1kW of solar produces approximately 1.3 SRECs every year.
1 SREC is currently valued at $600
SRECs can be sold for 15 years from the time the system is installed
SREC income is tax-free
Regardless of which state you’re in, solar is more affordable than ever! To find out exactly how much these incentives can save you, contact one of our Renewable Energy Consultants today, on 267.297.2355 or contact us online!
Solar in the US: How We Compare
It’s no secret that the US Solar Industry is booming right now. State and Federal incentives, coupled with a reduction in the cost of solar panels has driven the price of solar down significantly over the past 24 months. From 2009 to 2010, the average cost of solar in the US dropped from $7.96/watt to $7.16/watt (-10%), causing installations to increase from 22,322 (2009) to 34,784 (2010), or growth of 36%. In terms of the amount of solar installed, the US market grew by 96%, with a total installed capacity now at 1695mW. Quite an achievement!
So how do we compare with the rest of the world?
(source: Solarbuzz)
While solar in the US has grown in leaps and bounds over the past 2 years, we only account for 5% of the global market. As expected, Germany and the rest of Europe lead the way, collectively making up 81% of the market. However, By 2015, market experts project the European market share to fall to between 45-54% as the US and several Asian markets grow rapidly. It’s tipped that the US will be the fastest growing major country market over this period. And even better news, over the next five years, factory gate module prices are projected to drop between 37% and 50% from 2010 levels, meaning cheaper solar for you!
Two major factors why the US solar market is expected to experience further growth is our increasing energy consumption, and rising energy prices derived from non-renewable resources. Per capita, the US consumes nearly double the energy of the next closest country with a significant solar market:
While our consumption is high, it also creates enormous opportunities for the renewable energy and energy-efficient industries. Contrary to basic economic theory that suggests that a decline in energy use will result in economic decline, creating energy from renewable resources such as solar, and being smarter with our energy use will create a secure energy market for the US and encourage long-term economic growth.