Montclair Climate Action

Rooftop Solar

For homeowners who are considering installing solar panels on their own homes, there are many options available to help with finances from both the federal and state governments. These incentives assist with installation costs and provide more revenue once the system is running, all to help you save money while reducing your fossil fuel usage. When purchasing a solar electric system, paying in full is often not an option. Fortunately, solar loans are available from many New Jersey organizations. Other options for financing include solar leases and power purchasing agreements (PPAs).

Solar Loans

Solar loans have the advantage of providing homeowners with full ownership of their solar energy system. You’ll be eligible to receive and sell renewable energy credits, and through “net metering,” sell excess electricity back to the New Jersey grid. You’ll be able to take advantage of a sales tax exemption on solar equipment and a property tax exemption on any increase in your home’s value from the solar installation. However, not everyone can get a solar loan, and the owner is also responsible for anything that goes wrong.

Solar Leases and PPAs

 In both leases and PPAs, a solar developer owns the system and the homeowner receives solar energy for the term of their lease or agreement. The developer is typically responsible for maintenance and troubleshooting, but also receives the tax incentives and renewable energy credits. This arrangement minimizes your financial risk. As the homeowner, you wouldn't need to worry about the fluctuating prices of electricity and renewable energy credits, only a stable rate that you pay to the solar developer.

There are quite a few rooftop solar installers right here in the Montclair area, and it’s easy to find them online through a quick search! Visit the EnergySage Marketplace to see a list of pre-screened solar companies that do home installations nearby, and follow the links to to explore pricing, reviews, and more information. 

When it comes to rooftop solar, there are many funding methods available and many companies to choose between different options are right for different people. However you pay for your solar panels, they are always a great option to lower your carbon footprint from your own home, while saving money along the way.