- Homeowners can claim a 30% Federal Clean Energy Tax Credit (Section 25D) on total system costs, including panels, labor, and batteries.
- This credit applies to systems installed by December 31, 2025.
- The credit is non-refundable but can carry over to future tax years.
- After 2025, the 30% credit for homeowners expires; only leases and PPAs qualify under Section 48E through 2027.
- Standalone battery systems are also eligible for a 30% credit through 2032, even if installed separately from solar panels.
- Sales Tax Exemption: Full exemption (~6.625%) on solar equipment and batteries.
- Property Tax Exemption: Solar panels do not increase your home’s taxable value.
- Net Metering: Get credited at full retail value for excess electricity sent to the grid.
- SuSI Program: Earn approximately $85 per megawatt-hour (MWh) of solar energy generated for 15 years.
- The 30% federal tax credit for purchased systems ends on December 31, 2025.
- Delaying could mean losing significant savings and facing longer wait times due to increased demand.
- Leased systems may still qualify for federal incentives through 2027, but ownership provides the biggest long-term savings.
- The Section 48E federal tax credit for leases/PPAs continues through 2027.
- Battery systems remain eligible for a 30% tax credit through 2032, even if installed separately.
- State programs like Net Metering, Sales Tax Exemption, Property Tax Exemption, and SuSI payments continue beyond 2025.
- 30% federal tax credit reduces system costs significantly.
- Save approximately 6.625% with the state sales tax exemption.
- Avoid increased property taxes with the Property Tax Exemption.
- Earn credits or payments for excess energy through Net Metering and the SuSI Program.
- Sign contracts and schedule installation as soon as possible to meet the 2025 deadline.
- Decide between purchasing or leasing your solar system, based on available incentives.
- Secure financing if needed, and plan ahead for claiming tax credits.
- Register your system with New Jersey’s Clean Energy Program to access SuSI payments and other benefits.
- Consult a tax advisor to confirm eligibility and ensure proper filing of tax credits.