Save with solar in Hoboken, New Jersey

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Hoboken, New Jersey

With a population of over 50,000, Hoboken is unmistakable a part of the New York metropolitan area and was a key port during most of the 20th century. It is also the site of the Hoboken Terminal, an important transportation hub of the New England region. The economic growth of Hoboken during the 20th century was due in large part to the shipbuilding and steel industries.

Hoboken is best-known as the birthplace of Frank Sinatra and the place where the first officially recorded baseball game was played. Nowadays, industrial and port activity have taken a backseat in Hoboken, while the commercial and residential sectors have grown.

Hoboken has taken significant steps to becoming a greener city. The following are some of the main projects developed over recent years:

  • The Public Service Electric and Gas Company (PSE&G), the electric utility serving Hoboken, has installed several hundred solar panels on its utility poles. This is part of the Solar 4 All Program, which targets the entire PSE&G service area in New Jersey.
  • Tribeca West, a high-end residential development in Hoboken, uses solar water heating to meet 70% of its hot water demand.
  • Hoboken is competing with six other New Jersey municipalities in the Sustainable Jersey Solar Challenge. The city that installs the most solar panel systems by May 2017 will be awarded a grant to further develop its renewable energy capacity.
  • Hoboken installed 40 solar-powered recycling bins with trash compactors across the city waterfront in 2014.

Investing in Solar Power in Hoboken, NJ

PSE&G electricity rates average around $0.15 per kilowatt-hour (kWh), exceeding the national average by more than 15%. This gap just became wider, as PSE&G customers experienced a power bill increase of 5% just in 2016 alone. However, expensive electricity makes solar power a more attractive investment. Not only will you save money on your electricity bills in the first year, but your annual savings will increase as the price of electricity continues to increase.

In addition to offering you considerable energy savings, solar panel systems make you eligible to accumulate Solar Renewable Energy Credits (SRECs). Here is how you can think about energy savings and SREC income:

  • For every 1,000 kWh generated from your solar panels, you save around $150 in avoided energy bills.
  • You will also accumulate one SREC each time your system produces this much energy. As of early 2017, SRECs sell for around $220 each.
  • If you add both savings and SREC income, you receive $370 per 1,000 kWh that your system generates, or 37 cents per kWh.

There are also significant tax benefits for any home or business owner who installs solar panels in Hoboken. First, there is no sales tax on the upfront purchase of a solar system. Second, you will not experience a property tax hike despite the fact that installing solar will increase your home value by an estimated $20,000 to $30,000. Finally, you can claim 30% of your solar power investment as a federal tax credit, for all systems installed before the end of 2019.

New Jersey also offers homeowners a few unique programs encouraging residents to go solar. First, the state encourages residents building a new home to go solar by offering an additional rebate through the NJ Clean Energy Residential New Constructions Program. Through this program, you can receive an additional grant from the state of New Jersey if the solar panel system is for a home that hasn’t been built yet. PSE&G also offers home and business owners a loan financing option with which the system owner pays back the loan with SRECs. If you have a solid credit score and own home equity, you may get even better terms from local banks.

With high power bill savings, SREC sales and tax benefits, installing a solar panel system in Hoboken is one of the best investments owners of both residential and commercial property can make.