Whether purchasing or leasing solar power, an NJ solar system always comes with numerous benefits and incentives. Aside for the knowledge that solar power helps preserve the planet, there are also significant financial incentives that make solar a smart investment. Arosa Energy ensures that customers maximize utilization of the incentives available, and receive optimum bonuses from their systems.
With an Arosa Energy solar system, homeowners and business owners receive free electricity, practically eliminating electricity bills. With product warranties of 25 years and locked-in lease rates, customers are guaranteed long lasting savings.
SRECs – Solar Renewable Energy Credits
An SREC, in simple terms, is 1,000 kwh (kilowatts/hour) of solar power, considered renewable power. New Jersey’s renewable portfolio standard (RPS) requires energy providers to supply as part of the electricity it sells a set amount of qualifying renewables annually, or face a significant fine. Electricity suppliers therefore actively purchase SRECs as a means of meeting their solar RPS.
By selling SRECs, the solar system owner retains the energy and merely sells a certificate of clean energy to the electric company for added profit. The SREC program is responsible for considerably accelerating the spread of solar power across New Jersey, making NJ the second solar state after California.
Federal Tax Credit
The treasury Department is now awarding a 30% Federal Investment Tax Credit for all solar expenditures, primarily PV systems. This is based on legislation that was passed in February of 2009, known as the American Recovery and Reinvestment Act of 2009. The tax credit is also permitted torollover from year to year; it is important, however, to consult with an accountant about how long the credit will last.
Applicable only to commercial solar systems, businesses may recover investments in energy through depreciation deductions. The Modified Accelerated Cost-Recovery System (MACRS) was amended and extended in 2010 with the Tax Relief, Unemployment and Insurance Reauthorization, and Job Creation Act of 2010. This provision allows property that benefits from solar energy to see substantial accelerated depreciation.
With various incentives available and more legislation being introduced daily, the investment in solar power is whittled down and quickly overshadowed by its numerous benefits, both financial and environmental.