Solar panels, solar modules, Photovoltaic Cells (PV) as they are sometimes called, are typically installed on the roof of commercial, residential & industrial buildings. These panels are made up of photovoltaic (PV) cell arrays, which convert sunlight/daylight into direct current (DC) power. The DC power from the solar panel arrays is transferred to a DC inverter, where it is converted into alternating current (AC) power 120 volts for use in your home. AC power continues its path from the inverter to the electrical panel, often called a circuit breaker panel. This power is now available to use in your home's electrical needs. The PSE&G utility meter continually monitor's your electrical consumption & when your solar system produces more power than you consume, the meter will begin to spin backwards which in turn will lower your next meter reading from the utility company thus lowering your next month's bill. Your home always remains connected to the PSE&G utility grid to supply you with electricity when you need more power than your solar system can produce.
New Federal Solar Incentives, specifically the Section 1603 Treasury Cash Grant program which was recently extended through 2011, and the new 100% Bonus Depreciation benefit which also is in effect through 2011. New Jersey solar incentives including the Solar Renewable Energy Credit (SREC) marketplace and the related SREC-Based Financing Programs offered by the state's utilities. Significant reductions in the cost of solar photovoltaic systems. If your business has considered installing a solar photovoltaic system in New Jersey, you may have heard something about SREC's. SREC's investment returns are attainable from commercial solar projects in New Jersey today.
New Jersey has an aggressive Renewable Portfolio Standard ("RPS") which requires that an increasing percentage of the electricity consumed in the state each year must come from renewable energy sources (with a goal of 22% from renewables by the year 2021). In addition, there is a specific RPS requirement that solar energy provide a fixed and increasing portion of the total electrical generating capacity in the state.
The impact of the SREC market in NJ is that commercial solar project owners are able to generate a substantial cash flow stream from the sale of SREC's, entirely separate from the the electricity cost savings. For example, a 2MW net-metered commercial solar photovoltaic system that produces 2.4 million kWh in a given year could provide the system owner with over $1,400,000 of cash income from the sale of SRECs, while also saving the system owner over $320,000 in electricity costs by producing the electricity on site via solar power and not purchased from the local utility.
New Jersey businesses and homeowners are eligible for state and financial incentives, such as a 30% tax investment credit. Businesses can also take advantage of federal depreciation benefits. In addition, solar system owners in New Jersey can generate significant income by selling their Solar Renewable Energy Credits (SRECs). Redline Electric will take care of all the required paperwork. If you have any questions, feel free to contact us.