SOLAR ENERGY INCENTIVE AND GENERAL INFORMATION

Federal Incentives

Business Energy Investment Tax Credit (ITC): The federal government offers a tax credit of 30% for all solar energy related expenditures, with no maximum credit. Eligible solar energy property includes equipment that uses solar energy to generate electricity. Information on this program can be found at
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US02F.

Federal Grant Program: The American Recovery and Reinvestment Act of 2009 allows taxpayers to receive a 30% grant from the U.S. Treasury (upon installation of the solar system) in lieu of applying for the Business Energy Tax Credit (ITC). These grants will be available until 10/1/2011. Information on this program can be found at: http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=US53F&re=1&ee=1

Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation (2008-2009): Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in solar property through depreciation deductions up to 85% of the total cost... The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. Solar electric and solar thermal technologies are classified as five-year property. A special 50% bonus depreciation was enacted in February 2008 as part of the federal Economic Stimulus Act of 2008, however, only properties acquired during 2008-2009 with systems put in place during that window of time are eligible. We expect that this law will be extended through year 2010. Information on this program can be found at: http://dsireusa.org/incentives/incen! tive.cfm?Incentive_Code=US06F&re=1&ee=1

New Jersey Incentives

Renewable Energy Incentive Program (REIP): A state â..upfrontâ.. incentive that reimburses commercial building owners $1.00 per watt for the installation of a photovoltaic system on their site. This program is limited to less than 50,000 watts (5,500 square feet of roof). Information on this program can be found at:
http://njcleanenergy.com/renewable-energy/programs/renewable-energy-incentive-program

Sales tax Exemption: New Jersey offers a full exemption from the state's sales tax (currently 7%) for all solar energy equipment. This exemption is available to all taxpayers. All major types of solar energy equipment, including equipment for passive solar design, are considered eligible for the exemption. Information on this program can be found at: http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ01F&re=1&ee=1

Property Tax Exemption for Renewable Energy Systems: In order to claim the exemption, property owners must apply for a certificate from their local assessor which will reduce the assessed value of their property to what it would be without the renewable energy system. Exemptions will take effect for the year after a certification is granted. The New Jersey Department of Treasury, Division of Taxation is required to develop the rules and regulations necessary to implement this law. Information on this program can be found at: http://dsireusa.org/incentives/incentive.cfm?Incentive_Code=NJ25F&re=1&ee=1

Renewable Energy Manufacturers Incentive (REMI): The NJREMI will offer rebates to residential and non-residential market segments that purchase solar panels, inverters, or racking systems manufactured and commercially available in New Jersey including AC modules which are integrated assemblies of these components. The amount of incentives available for non-residential projects varies from $.05/watt to $.14/watt depending on the whether the eligible equipment items are photovoltaic panels, inverters, or racking system. Information on this program can be found at:
http://www.njcleanenergy.com/files/file/Library/2009%20RE%20%20Residential%20EE%20Plan%20FINAL%20DH%20090529.pdf

Production Incentive

NJ Board of Public Utilities - Solar Renewable Energy Certificates (SRECs): Solar Renewable Energy Certificates (SRECs) are awarded to building owners, at a rate of one SREC per every 1000 kilowatt hours (kWh), who generate clean energy by use of a solar system and that are registered with the SREC program. New Jerseyâ..s SREC program provides a means for SRECs to be created and verified for a period of 15 years from the date that the solar system begins production. Electric suppliers buy these certificates in order to meet their solar Renewable Portfolio Standard (RPS) requirements. All electric suppliers must use the SREC program to demonstrate compliance with the RPS. The price of SRECs is determined primarily by their market availability (currently $660 per SREC). Information on this program can be found at: http://dsireusa.org/incen! tives/incentive.cfm?Incentive_Code=NJ07F&re=1&ee=1 and information on market values for SRECs can be found at http://www.srectrade.com

Solar Radiation

Global Horizontal Irradiance: The total amount of solar radiation per unit area that is intercepted by a flat, horizontal surface. It is an estimated value with a standard error of 10% measured in kWh/m/day. A solar radiance map can be found at this site: http://firstlook.3tier.com

Photovoltaic System Estimates

Photovoltaic System Calculator: A solar power calculator to estimate the cost and size of a solar energy project in a specific area can be found at: http://solar.coolerplanet.com/Articles/solar-calculator.aspx