Ah, wintertime in New Jersey. Time to wish for sunnier weather and think about your utility bills! Could solar panels be the solution for you? New Jersey has some of the highest electricity rates in the country and some of the most generous incentives for residential solar. When combined with the 30% federal tax credit for solar, you don’t even need optimal roof conditions for solar to make sense financially.
Our team has a great local connection who can help you weigh your options– Adam Joseph of Power Solutions, and here’s how he breaks it down…
There are really only a few deal breakers that will rule out solar for your home. First would be if your roof shingles are made of slate or wood, as very few installers will work on those surfaces. Second would be if your house is heavily shaded on all sides. Even if your house is only unshaded on one side, solar may still make sense.
Let’s look at a typical local home that uses 15,000 kWh/year of electricity and gets its power from PSEG. This home will pay about $2,700/year for power. Assuming the home has average solar characteristics, it can probably generate 100% of its power usage with a solar system that would cost about $35,000 before all incentives.
The homeowner would then be eligible for the 30% federal tax credit which is worth $10,500. Assuming the homeowner chooses to finance the net cost of the project with $0 down at today’s going rate for a 15-year solar loan, the annual loan payment would be about $2,800, or about $100 more than the cost of sticking with PSEG. But the homeowner will also receive about $1,300/year from the State of New Jersey’s Clean Energy Program, thus reducing the net cost of solar to about $1,500, or $1,200 less than sticking with PSEG. Moreover, the loan payment is fixed for 15 years, while the cost of power from PSEG will likely rise over time, meaning that the annual savings from solar will likely increase over time.
Homeowners choosing to pay cash for the project instead of financing it would generate a cash-on-cash ROI of about 13% once the bill savings, tax credits and NJ incentives are figured in. Not bad for a very low risk investment!
Many solar installers will give you a free, detailed proposal that includes an in depth survey of your home. You might as well get one – you’ve got nothing to lose but your electric bill!
Adam’s mission is to help people really understand the benefits of solar – both financial and environmental – and to make the most informed decisions possible. If they decide to move forward, his continuing mission is to get the system on the roof on time and with no drama.
If you like us to connect you with Adam so he can educate you and help you decide if solar is right for you please reach out to us. You can email me at allison@njfromatoz.com or contact Adam directly via this website.
The Allison Ziefert Real Estate Group is a top producing real estate team based at Compass in Short Hills, New Jersey. We are local market experts, specializing in real estate and homes in Maplewood, South Orange, Millburn/Short Hills, Montclair/Glen Ridge, West Orange, Morristown and the surrounding New Jersey towns. We’ve also got you covered coast to coast with the best connections to top agents around the country in any market you are exploring. We are driven by earning great testimonials and referral business from happy clients.