How the IRA Helps Property Owners Lower Energy Bills

The United States Congress recently passed the Inflation Reduction Act (IRA), which among several other things, aims to promote clean and renewable sources of energy. This is great news for homeowners who have been thinking about installing home solar systems, but perhaps needed a little push to do so. And by “push” we mean attractive incentives that will help you save up to 30% on solar installation costs.  Let’s take a look at what’s in the IRA and the benefits you can access by installing residential solar panels in 2022. 

Inflation Reduction Act 

The Inflation Reduction Act was passed in August 2022, and it’s touted as being a game-changer for both the solar industry and solar manufacturing in the United States. Some of its key provisions include changes to tax laws that will impact solar manufacturing, and incentives to combat climate change. 

Investment Tax Credit

The Investment Tax Credit has been increased from 26% to 30%, meaning if you install a home solar system you can claim back 30% of your installation costs. This tax credit applies to both residential and commercial solar systems, and it will be in effect until the end of 2032. 

Additionally, battery-based solar energy storage systems also qualify for the ITC on their own – you don’t need to have purchased one as part of a new solar installation to apply for the tax credit. 

Clean Electricity Production Credit

The solar power industry is now eligible for the Clean Electricity Production Credit. All solar power projects that meet wage requirements will receive a tax credit of 2.5 cents / kWh for the first 10 years of the project’s duration. This credit will be increased according to inflation year-on-year. 

Domestically Produced Hardware

To encourage an increase in US-based solar manufacturing, solar manufacturers will receive various tax credits for producing the components of a solar system, including solar panels, inverters, and racking components. 

Community Solar Projects

Solar panels that direct their energy into community solar projects for low-income people will receive an additional 10% tax credit, meaning the total tax credit could potentially be around 60! 

If you’d like to know more about how installing solar panels can help you lower your energy bills, or if you have any other questions about solar panel installation in NJ, please contact our team at Green House Solar today or visit: https://greenhouse.solar/

How Solar Impacts the Value of Your Property

Homeowners in New Jersey and beyond are installing solar systems on their property in order to power their homes with completely free and renewable energy from the sun. But you’ve probably wondered: will a solar system increase my property value or is it a deterrent for some buyers?

In this article, our team at Green House Solar will discuss installation costs, return on investment, and explore several caveats about home solar panels in Morris County.

Solar Panel Installation Costs

The upfront installation costs can sometimes make people wary of home solar panels, but with things like solar leases, solar loans, and the 30% Federal Solar Tax Credit, homeowners have more options than ever before to finance their solar system installation. In addition, the average warranty of a market-leading solar system is around 25 years. However, the lifespan of the panels is much longer than that, so if you’re planning on selling your home within that time frame, having solar panels will be very attractive to potential buyers. 

Additionally, according to home buying and selling sites like Zillow, homes with solar panels sell for 4.1% more on average than homes without a solar system. 

Return on Residential Solar Investment

One obvious benefit of solar panels is lower monthly energy bills, but did you know that energy that you save from having a home solar system translates to your home being valued at a higher price? The National Renewable Energy Laboratory conducted a study and found that for every dollar saved on energy via a home solar system, the value of the home increases by $20. That’s a huge return on investment of 20:1. 

Residential Solar Caveats

If you lease your solar system and want to sell your home, the buyers will also need to agree to take over your existing solar lease. You can also transfer your solar lease to someone else, and many solar leasing companies can assist you in finding a buyer for your lease.

As mentioned above, the average warranty is 25 years, although the lifespan of the panels is much longer than that. In fact, with the lowest degradation of the highest rated SunPower panels, only 0.25% is lost per year, meaning that even after 25 years those panels will still be producing 92% of the power they were on day one

If you’d like to know more about how solar systems can increase your property value, or if you have any other residential solar questions, please contact our team today or visit us at: https://greenhouse.solar/

Solar Power for Home - Green House Solar

Solar power systems aren’t just great for the environment and for saving on your energy bills, they also offer big tax incentives and a healthy SREC market if you live in NJ. In fact, our state offers some of the best solar incentives in the country! Here are the NJ solar rebates and incentives for 2019.

  • Solar sales tax exemption: You are 100% exempt from any sales tax when purchasing your home solar system, a 7% savings on all your solar equipment.
  • Property tax exemption: Home solar systems are in high demand, and many homeowners invest in these systems in order to add value to their home and achieve a more attractive sales price. Fortunately, NJ residents investing in home solar systems do not have to pay any additional property tax on the value that system adds to your home.
  • Federal solar tax credit: You are also subject to the federal investment tax credit, reducing the cost of your home solar system by 30% when buying it outright.
  • NJ net metering: Through this program, you can sell any additional energy your home generates back into the grid at the retail rate. This is fairly profitable, as the retail rate is higher than the bulk rate utilities receive their electricity at and means that you never waste energy.
  • Solar Renewable Energy Certificates (SRECs): Each time your solar system produces one megawatt-hour of energy, you earn one SREC. These SRECs can then be sold on to utilities who use them to meet NJ Renewable Portfolio Standards. The price of these SRECs changes according to supply and demand and has ranged between $165 and $262 over the last few years.

Want to Reduce Power Cost in Morris County NJ? Contact Our Home Solar Team Today 

Greenhouse Solar is one of the leading solar companies in Morris County, NJ. We are Sonnen Certified, and our experienced teams are ready to answer all your questions about home solar systems and solar battery backup systems. We are here to help design, install and maintain your solar system, completely customized to your needs and budget. To find out more about home solar in Morris County NJ, our company or services, please contact us today or visit our website at https://greenhouse.solar/