State Renewable Energy
With all the buzz surrounding the free roof with solar trend in New Jersey, it's crucial to separate fact from fiction. In this blog, we'll delve into the details of how homeowners in New Jersey can leverage state and federal credits to potentially replace their roofs for free.
By understanding the incentives available, homeowners can not only enjoy a new roof but also save a substantial amount on their electric bills. So, let's take a deep dive into this exciting opportunity.
Current Electric Obligations in New Jersey
To comprehend the benefits of the free roof with solar trend, it's essential to first explore the current electric obligations for the average New Jersey home. On average, homeowners in the state consume approximately 6,179 kWh of electricity annually, resulting in an average annual cost of $1,151.69. This financial burden is compounded by the average electric increase in New Jersey, which stands at 2.547% per year. Over a 15-year period, this amounts to a staggering 38% increase in electric costs. However, by installing solar panels on their roofs, homeowners can produce their own power and reduce or eliminate their reliance on expensive retail electricity rates from their utility company.
Incentive Credits for Homeowners
One of the key factors that make the free roof with solar trend possible is the availability of incentive credits for homeowners. Let's take a closer look at the two primary credits they can collect:
Homeowners who install solar panels are eligible for a generous 30% Federal Tax Credit. This credit is typically received as a refund check when filing federal taxes in the year the panels were installed and functioning. It can be applied against the amount of taxes paid during that year or subsequent years until the tax credit is fully utilized.
New Jersey offers a state credit known as an SREC, which provides a direct deposit payment to homeowners based on the amount of power their home produces. The current rate is $89 for every 1,000 watts (1 kW) of power generated. Over a 15-year period, an average home producing 6,328 kWh can receive a total of $8,437 in SREC payments. These payments are directly deposited into the homeowner's account if they decide to own their solar system.
How the Roof Becomes Free
Now, let's explore how the roof replacement can be effectively covered through these credits. There are a few ways in which this is made possible, depending on the size of the roof and the required system. Firstly, the cost of the roof can be included in the calculation for the 30% Federal Tax Credit. Consequently, 30% of the total cost, including both the roof and solar installation, can be covered through this federal benefit alone. In many cases, this cashback tax credit is approximately equivalent to the cost of a roof replacement, making it seem like the homeowner is getting a free roof. Furthermore, since solar panel production costs are already lower than the average American's electric bill, the additional SREC credits act as a bonus, putting most homeowners in the green from day one.
Maximizing Savings and Roof Replacement
For homeowners in New Jersey concerned about leaky or damaged roofing systems, utilizing these state and federal credits is an ideal solution. Not only can they replace their roof, but they can also achieve significant savings on their electric bills. It's important to note that the longer homeowners wait to go solar, the fewer opportunities they have to take advantage of the potential savings, as grid-tied electricity prices continue to rise.
If homeowners in New Jersey are worried about leaky or damaged roofing systems, then the best option is to utilize these state & federal credits to not only get a roof replacement but also save an immense amount on their electric bills as well. One thing's for sure, the longer homeowners in New Jersey wait to go solar, the less opportunity for savings as their grid tied electricity skyrockets.
State Renewable Energy (SRE) is a reliable information hub for learning more about the ever changing federal and state renewable energy incentives throughout the U.S.
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