• Commercial Systems
• Residential Systems

Financial Incentives for commercial systems in New Jersey include the following:

• New Jersey State Rebates - up to 60%
• Green energy certificates (SRECs) can be sold for profit each year on open market
• 10% federal tax credit
• accelerated 5-year depreciation
• tax deduction for loan interest
• no New Jersey sales tax

Each is briefly summarized below.

Systems greater than 10kW
1 to 10 kW	$5.50/watt
> 10 to 100 kW	$4.00/watt
> 100 to 500 kW	$3.75/watt
> 500 to 1,000 kW	$0.30/watt
Maximum incentive as percentageof eligible system costs	60%

For more information, go to www.njcep.com.

Renewable Energy Certificates (RECs), also known as "Green Tags" represent the renewable or "green" aspect of electricity that is generated from a renewable source of energy. Under its aggressive solar energy program, the New Jersey Clean Energy Program (www.njcep.com) has created a solar-specific green tag, the Solar Renewable Energy Certificate (SREC). Because there is a demand for this green aspect of solar electricity by various individuals and companies, SRECs have a monetary value. They can be bought, sold, and traded regardless of who uses the actual electricity. The current value is approximately $0.17 per kWh in New Jersey.

This is also known as the "Business Energy Tax Credit". Only commercial entities can take the credit. Limit on credit each year is $25,000 plus 25% of the remaining credit. The remainder of the credit can then be taken in subsequent years with the same limits. This is not available to public utilities, government organizations, and non-profit organizations.

PV Systems generally qualify for accelerated five-year depreciation instead of the normal 20-year depreciation. The MACRS schedule uses a 200% declining balance method, and the deduction schedule by year is as follows:

Year 1: 20.00%
Year 2: 32.00%
Year 3: 19.20%
Year 4: 11.52%
Year 5: 11.52%
Year 6: 5.76%

Note the basis for the depreciation must be reduced by an amount equal to 50% of the amount claimed for the 10% federal tax credit.

If a loan is used to finance the system, the interest is an expense which can be used to offset income, and thus serves as a tax deduction.

Solar Energy installation is exempt from New Jersey Sales Tax.

Financial Incentives for residential systems in New Jersey include the following:

• New Jersey State Rebates - up to 70%
• Green energy certificates (SRECs) can be sold for profit each year on open market
• tax deduction for home equity loan interest
• no New Jersey sales tax

Each is briefly summarized below.

Solar Electric Systems
2003	Incentive Level
Systems up to 10kW	$5.50/watt
Maximum incentive as percentageof eligible system costs	70%
Systems greater than 10kW
1 to 10 kW	$5.50/watt
> 10 to 100 kW	$4.00/watt
> 100 to 500 kW	$3.75/watt
> 500 to 1,000 kW	$0.30/watt
Maximum incentive as percentageof eligible system costs	60%

For more information, go to www.njcep.com.

Renewable Energy Certificates (RECs), also known as "Green Tags" represent the renewable or "green" aspect of electricity that is generated from a renewable source of energy. Under its aggressive solar energy program, the New Jersey Clean Energy Program (www.njcep.com) has created a solar-specific green tag, the Solar Renewable Energy Certificate (SREC). Because there is a demand for this green aspect of solar electricity by various individuals and companies, SRECs have a monetary value. They can be bought, sold, and traded regardless of who uses the actual electricity. The current value is approximately $0.17 per kWh in New Jersey.

This is a standard interest deduction for home improvements if they are made with a home equity loan.

Solar Energy installation is exempt from New Jersey Sales Tax.