Believe it or not, New Jersey is one of the best states in the country when it comes to solar power incentives. In today’s article, we’re going to take a close look at New Jersey’s net metering incentives. We’ll be discussing exactly what it is, how it works, why it’s better in New Jersey than in most states, and what it means for you.
Introduction to Net Metering Standards
Once you make the switch to solar energy, your home will still be connected to the electrical grid and will need to use net metering.
Net metering is a way to account for energy produced by your solar panels. Any excess energy produced by your solar panels will actually be credited back to you. Throughout the day while your solar panels are producing more clean energy than you’re using, your electrical meter will actually move in reverse.
Since you’re still connected to the grid, you’ll still have the ability to purchase energy from your existing utility company if your usage exceeds your solar production. In New Jersey, you’re credited for 100% of the retail price of electricity. Therefore, if your solar panels produced 90% of the electricity you used in a month, your electric bill would only be 10% of what it was before you had solar power.
Net Metering In New Jersey
Not all states have net metering, even fewer have net metering regulations as friendly as New Jersey’s. Now we’ll examine what’s different about New Jersey’s net metering policies and why they’re so advantageous for property owners.
First, New Jersey allows an unlimited amount of customers to participate in the program – so you don’t have to worry about “missing the boat”. As we mentioned previously, New Jersey also credits you 100% of retail price on energy that is sent back into the grid.
In addition, New Jersey’s net metering policies are flexible. While some states require a specific solar array or production thresholds, New Jersey allows customers with any sized solar system to participate.
New Jersey’s Overall Solar Rank
Taking a step back and analyzing New Jersey’s overall solar environment, we give the state an “A” grade. The experts at Solar Power Rocks agree.
In a study of all 50 states, New Jersey placed 3rd in their “2020 State Solar Power Rankings Report”. States were graded on ten different categories, where New Jersey received an “A” rank for its net metering.
The study also shows that the average payback for your solar panel investment is just 8 years. In addition, the internal rate of return calculated for New Jersey residents was found to be 14.7%.
Upgrading to Solar in Your New Jersey Home
Now that you have a better grasp of how net metering works, you’re probably excited to get started on your own solar goals. While only 8 years, on average, is needed to realize a payback on your solar investment, Green Power Energy offers a 25-year warranty on their solar installations. Talk to one of our solar consultants today to take the next step.
Visit Green Power Energy today for more information.