Solar Panels NJ: Tax Free Savings
Installing Solar panels on your home has so many positive benefits, we’ve listed just a few below.
- Immediately lower or eliminate your electric bill
- Act as a hedge against future NJ electricity rate increases
- Offer a low-risk alternative to volatile equity investments and historically low interest rates
- Increase the value of your home (exempt from property tax increase)
- Contribute to a better environment for future generations
- Save money each month on electricity costs
- Money earned with solar panels is tax free
- The cost of electricity from a solar panel will never go up
- In some cases you can get solar panels for no money down
- Become energy independent
- When grid power goes down you’ll still have electricity with an off grid system, home generator or home battery system
Why tax free?
The cost of installing a Solar Panel system decreased significantly over the past few years in NJ. The price of solar panels alone (the single largest expense) has dropped more than 70% since 2010. At our current installation costs, and assuming only modest projections for utility rate increases, the return on investment can exceed 15% per year. And because these returns are in the form of savings (freeing money that would otherwise go to the utility company), the money is 100% tax-free. Solar energy from a solar panel has an equal value to the current cost of electricity from your utility so as energy prices rises almost every year your solar panels will be making more and more money. The money made by the solar panels is tax free since it’s in the form of a savings, the federal and NJ state government don’t touch it.
Solar energy systems also add tax-free value to your home. A 2011 research project by the U.S. Dept. of Energy showed that houses with solar panel systems sold for substantially more than comparable houses without renewable energy. Because solar panel systems are exempt from property taxes, that increased value does not result in higher appraised value – another way that homeowners benefit.
For most people, incentives to offset the up-front cost of a solar energy system are in the form of the 30% Federal Tax Credit, rebates from utility companies and/or local governments. Rebates vary from place to place, from year to year, and from company to company. Hughes makes a special point of staying well-informed on all NJ solar programs available at any given time.
UPDATE: The 30% Federal Income Tax Credit (ITC) has been extended through 2019!
Green energy systems provide clean, reliable power for many, many years. All system components are more efficient and more reliable than ever before. Our solar panels, for example, are covered by a warranty not only for quality of workmanship, but for electricity production too. Solar panels installed by Hughes are guaranteed to still be producing more than 80% of their rated output for the entire 25 year warranty period. The panels and mounting system that go onto your roof are also incredibly durable. All of the equipment we install is UL listed (never buy any electrical equipment that isn’t) and so must withstand one-inch hail, extreme heat and cold, and hurricane force winds. All of these things are factors happen from time to time in NJ so it’s important that our solar panels can withstand the climate and weather in NJ.
Hughes offers the widest range of solar panel components, and design options. If a company offers one panel and one inverter choice – they’re selling, not designing – don’t buy it. We also only install the best possible solar panels, inverter, home generator, wind turbines, and other green energy equipment. We issue the best warranty in the industry so it’s important for us to install only the very best renewable energy equipment.
Pay less for Solar Power.
Hughes customers pay 25-75% less than their current monthly utility bill and get price protection against rate increases. In NJ electricity rates go up just about every year and there’s no reason to think that trend will change any time soon. Every year you have solar panels producing energy your making more and more money as the cost of grid power goes up. Save money each month, protect the environment, earn tax free savings every year and enjoy a stable energy price for the life of your green energy system.
Always know what your rate will be.
Our PPA and lease terms mean you can start saving with solar energy from day one. No debt and no up-front costs to qualified homeowners. The cost of traditional grid power goes up just about every year in NJ but the price of your solar energy will always stay exactly the same. Start saving money for the things that really matter. Contact a Hughes representative today to find out more.
Solar Panels NJ: 0 Sales Tax on Solar Panels
That’s right, in NJ solar panels and other renewable energy equipment has 0 sales tax. On top of the federal and NJ state credits and rebates you don’t get charged a thing when you buy the panels. Home value increases due to a clean energy system is also exempt from a property tax increase. And money you earn each month does not get taxed as income since it’s in the form of a savings.