6 Questions New Jersey Homeowners Ask About Solar Incentives

If you're a homeowner in New Jersey, you've probably heard a lot about the benefits of going solar — but understanding the incentives can feel overwhelming. At SLM Solar, we hear these same six questions all the time. Here's what you should know:

1. What is the federal solar tax credit and do I qualify?

Some homeowners qualify for the federal Investment Tax Credit (ITC), which currently allows you to deduct 30% of your system's cost from your federal taxes. This applies to both cash purchases and financed systems, as long as you own the system and have enough tax liability to use the credit. Note that the ITC is currently on the chopping block at the end of this year! If the Investment Tax Credit is important to you and your tax professional has assured you that you will qualify, you will need to have your system installed by the end of 2025 to reap the benefits.

2. What is New Jersey's SREC-II program and how does it work?

New Jersey homeowners who go solar are eligible to earn SREC-II certificates for the energy their system produces. These certificates can be sold to utilities for extra income — sometimes totaling thousands of dollars over the system’s lifetime. SLM Solar can help you register for and manage your SREC-II earnings.

3. Are there any upfront rebates in New Jersey?

Unlike some states, New Jersey focuses more on production-based incentives (like SRECs) rather than upfront rebates. However, your local utility or township may offer specific clean energy rebates or low-interest loan programs. We’ll help you identify any regional incentives when you get a quote.

4. Does installing solar increase my property taxes?

No. In New Jersey, solar panels are property tax exempt. That means even though your home’s value may increase with solar, your property taxes won’t go up because of it.

5. Can I stack all these incentives together?

In most cases, yes. You can take the federal tax credit and earn SREC-II income and enjoy the property tax exemption. We’ll guide you through combining these benefits to get the best return on your system.

6. Do I still need to pay for electricity with solar?

Possibly — but you’ll pay much less. With net metering in New Jersey, you earn credits for the excess energy your panels produce, which offsets your usage from the grid. Over the course of the year, many homeowners see massive reductions in their utility bills. You also insulate yourself from ever rising utility costs.

Have more questions about solar incentives? SLM Solar is here to help.

Call us at 765-276-6952

Or visit www.slmsolarnj.com to schedule your free consultation.