With a price tag from $10,000 to $30,000, installing a solar photovoltaic (PV) system on your home may seem prohibitively expensive. However, when you consider that in New Jersey you will probably spend as much as $70,000 on electricity bills for your home over the next 25 years, those upfront expenses for a PV system may not seem as cost prohibitive as you thought.
Owning your own solar energy system
Right off the top, there are federal and state incentives that reduce the cost of purchasing a PV system:
- The Incentive Tax Credit, which is offered by the federal government, reduces the purchase price by 30 percent.
- A New Jersey property tax exemption excludes from your tax bill the enhanced value of your home that is created when the PV system is added. (A California study indicates many homebuyers are willing to pay more for a home with a solar energy system.)
- New Jersey’s Solar Renewable Energy Credit program pays homeowners for the electricity they generate with PV power.
Buying just the solar power
If purchasing isn’t in your future, you can still get clean, renewable solar electricity by purchasing just the power from RGS Energy. Known as a Power Purchase Agreement (PPA), this arrangement gives you the power you want from the source you prefer. As a third party provider, RGS will connect your home to the PV generation station. For qualified homeowners, connection costs can be as low as $0 dollars. You’ll pay a fixed rate per kilowatt-hour (kWh) for the life of the agreement, potentially for 20 years.
The best aspect of a PPA is its low fixed kWh rate. Because there are no “generation” costs with solar electricity (just collection and delivery costs), there is no reason for the rate per kWh to fluctuate. Your home electricity bill will rise and fall only in relation to how much electricity you use. Compare that to the price of fossil fuel generated electricity, which rises and falls with fluctuating consumer demands and failing delivery systems.
New Jersey is leading the nation with its dedicated focus on renewable energy. You can join the movement by investing in clean, reliable PV electricity for your home. To learn more about purchasing a solar energy system — or about just buying the power — visit rgsenergy.com.