New Jersey BySolar
973.784.4191 Renewable Energy Systems for Businesses & Residences

Purchasing a Solar Electric System

In order to help homeowners install solar energy systems, state and federal agencies are offering rewarding incentives that enable the solar system to be paid off within 5 years and provide a continuing revenue stream for several decades.

Current incentives:

  • Federal Investment Tax Credit (ITC) - Homeowners are eligible for this tax credit equaling 30% of the net installation cost. The credit will be paid within 60 days after the system has been installed.
  • Sales of Solar Renewable Energy Certificates (SRECs) - Available to NJ residents, these solar energy attributes represent 1,000 kilowatt hours of electrical production. Homeowners can sell the SRECs they accumulate each month, providing an additional source of income to help pay off the cost of the solar system. Learn more about SRECs.
  • Energy Savings - From its date of installation, a solar electric system will reliably produce electricity during daylight hours and reduce your electricity bills for more than 30 years. The more energy bills increase in the future, the more you'll be saving!
Typical Solar Systems 5 kW 10 kW
Number of solar panels 25 50
Electrical production (kWh/yr) 6,300 12,600
Approximate price of system $28,500 $53,000
Federal ITC -$8,550 -$15,900
Homeowner is responsible for $19,950 $37,100
Yearly return from Solar Power System
SREC earnings $3,276 $6,552
Electrical Savings $1,071 $2,142
1st year return $4,347 $8,694
Average yearly return over 10 years $4,710 $9,420
Typical Investment Performance
Time to break-even 4.8 Years 4.5 Years
Annual rate of return 23% 23%
Increased home value* $22,170 $44,340