Why Choose Solar Electric?
Global demand for oil and other fossil fuels has reached all-time high, and unfortunately these energy sources are limited. Solar electricity (PV) is a clean, affordable, and unlimited resource. PV is an ideal way to hedge against rising electric rates and declare your energy independence.
There are five major economic benefits inherent to installing a PV system: NJ Clean Energy Program (NJCEP) rebates, reduced electric bills, solar renewable energy certificates (sREC’s), federal tax credits, and increased resale value of your home.
NJCEP Rebate
Most NJ utility companies apply a fee to each customer every month called the societal benefit charge (SBC). The money accumulated from the SBC is used by the Board of Public Utilities (BPU) to fund the NJCEP renewable energy rebate program. The current rebate level is set for residential customers at $1.55 per watt. However, if you get a certified home energy audit prior to installing a PV system you qualify for an additional $0.20 per watt, raising the rebate to $1.75 per watt, or approximately 20% of the installed system cost.
Reduced Electric Bills
Under the rules of net-metering you only pay for the electricity that you are unable to produce – debits and credits of electricity so to speak. For every KWh your PV system produces saves you money. If history is a guide, electric rates will only continue to rise, so your PV system will save you more and more money every year.
Solar Renewable Energy Certificates (sREC’s)
The goal in NJ is to have 20% of all power distributed in the state be generated by green sources, such as PV, by 2020. In order to meet this goal the utility companies must produce or acquire blocks of green energy, known as sREC’s. For every 1,000 KWh your PV system generates you will earn one sREC. sREC’s are bought by the utility companies through energy aggregators in order to meet their green energy quotas. Currently sREC’s are being bought from PV system owners for as much as $625.00 per credit. Not only does your PV system save you money month-to-month, but it also generates revenue.
Federal Tax Credit (FTC)
At the end of 2008 Congress extended the federal tax credit for people who install renewable energy systems. The FTC is now set at 30% of the system cost. The FTC can be claimed one time per system installed, however, it can be used until it is exhausted.
Increased Resale Value of Your Home
The National Association of Realtors (NAR) has a simple calculation to determine the approximate increased value for home that have PV and other renewable energy systems. NAR multiplies the annual utility savings projected for the system by a factor of 20. For example, if your PV system saves you $800.00 per year at current utility prices, the increased value to your home is approximately $16,000.00.