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Lakewood NJ - Solar installation at local
Private School. Using black solar modules
allowed the system to blend into the back-
ground as not to ruin the beauty of the building.
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The various rebates and financial incentives are a difficult maze to navigate. The experts at GreenPower Developers will help you navigate this maze to ensure the maximum utilization of all available incentives. Whether it's the state rebate(s), tax credits, SRECs or depreciation, at GreenPower Developerswe got you covered.

Tax Credit

The 30% Federal Investment Tax Credit (ITC) is equal to 30% of expenditures, with no maximum credit. Eligible solar energy property includes equipment that uses solar energy to generate electricity, such as solar PV systems. In 2009, President Obama signed the American Recovery and Reinvestment Act. This act appropriates funds for payments to entities who place in service specified energy property (i.e. solar energy systems).This incentive is due to expire at the end of 2016.

Accelerated Depreciation MACRS

Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in solar energy through depreciation deductions. In December 2010 the provision for bonus depreciation was amended and extended yet again by The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Under these amendments, solar energy property placed in service after September 8, 2010 and before January 1, 2012 qualifies for 100% first-year bonus depreciation. For 2012, bonus depreciation is still available, but the allowable deduction reverts from 100% to 50% of the eligible basis.

Power Purchase Agreement (PPA)

Solar PPAs are agreements between provider and customer to purchase ongoing solar power at long-term discounted rates. Customers only pay for the power generated by the facility, not for the solar equipment or installation. This can be a perfect solution when capital is not available and financing is not an option. This makes available solar installations to all customers since there is no initial outlay involved for equipment and installation. GreenPower Developers will work closely with PPA providers to negotiate contract length and attractive long term rate agreements.

Solar Renewable Energy Certificates (SRECs)

New Jersey's renewable portfolio standard (RPS) -- one of the most aggressive in the United States -- requires each electricity supplier/provider serving retail customers in the state to include in the electricity it sells 22.5% qualifying renewables by 2021. Solar Renewable Energy Certificates (SRECs) represent the renewable attributes of solar generation, bundled in minimum denominations of one megawatt-hour (MWh) of production. New Jersey's SREC program provides a means for SRECs to be created and verified, and allows electric suppliers to buy and retire these certificates in order to meet their solar RPS requirements. The utility companies face a fine also known as "Alternative Compliance Penalty" (ACP) should they fail to produce the required amount of renewable energy. In 2011 the penalty was $675 for every 1 MW that they do not produce from solar energy, but the stateallows them to purchase the "SRECs" from solar energy system owners and use these certificates to fulfill their requirement.

Instead of paying the ACP, the utility companies actively purchase the SRECs from solar energy generators to meet their compliance. All the actual energy that gets produced stays with the system owner, what gets sold is the "clean energy" bragging right. This program is single handedly responsible for accelerating solar energy in NJ, making NJ the second solar state after California.

Electrical Savings

The obvious benefit of installing a solar energy system, is the savings from your electrical bills. In most cases the customer can eliminate their entire electric bill and never have to pay another dime to their utility company. Since the solar panels and inverters have warranties for 25 and 10-15 years respectively, one can be certain his savings are here to stay.

Ridgefield NJ-
Multi-array solar installation.
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