Save with solar in Rahway, New Jersey

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Rahway, New Jersey

Located just 15 miles southwest of Manhattan, Rahway is a significant part of the New York metropolitan area with a population of nearly 30,000. Although Rahway experienced significant industrial growth in the early 20th century, it is now composed mostly of residential districts. Merck, a global leader in the pharmaceuticals industry, has been operating a large facility in Rahway since 1903.

One industry that has seen significant growth in Rahway in recent years is the solar industry. Here are some of the largest projects that have been installed in the city:

  • Merck equipped its Rahway facility with a 500-kilowatt (kW) solar panel system, composed of more than 1,500 individual modules. The project includes a hydrogen fuel cell system, which allows energy storage for combined heating and electric power.
  • The Public Service Electric & Gas Company (PSE&G) is the utility that provides electricity to the city of Rahway. It has taken a leading role in the transition to renewable energy in the city and has equipped more than 1,400 utility poles in the city with solar panels as part of the Solar 4 All program. The total installed capacity of these utility poles exceeds 300 kW.
  • RSI Bank has a 61.1 kW solar panel system on its rooftop, which has been operating since 2012. The system uses smart microinverters to optimize energy production down to the individual panel.

Investing in Solar Power in Rahway, NJ

Purchasing electricity from PSE&G is expensive as the utility charges 17 cents per kilowatt-hour (kWh). That is about 35% higher than the national average! As a result, generating your own electricity with solar panels is an attractive option. Also, PSE&G tends to increase its rates each year (for example, PSE&G customer experienced a 5% power bill increase from 2016 to 2017). With a solar panel system, you can save money and protect yourself from power bill spikes.

Energy savings are not the only financial benefit of installing solar panels in Rahway. Home and business owners also earn one Solar Renewable Energy Credit (SREC) for every 1,000 kWh of clean energy their solar panels produce. New Jersey utilities are subject to a Renewable Portfolio Standard, a law requiring New Jersey utilities to generate a minimum percentage of their energy from renewable sources. In order to avoid hefty fines, utilities can either generate more renewable energy or purchase SRECs. While PSE&G has installed some solar projects of its own, the utility still buys a lot of SRECs from its customers. This is good news for solar panel owners in Rahway, because you can sell your SRECs for as much as $210 each (mid-2017)!

In addition to energy bill savings and SREC sales, there are also many tax incentives available if you purchase solar panels in Rahway:

  • Sales tax exemption: This benefit provides an immediate price reduction.
  • Property tax exemption: Upgrades that increase your home value (such as solar) normally result in higher property taxes. However, when you install solar panels, you are exempt from property tax hikes.
  • Solar Investment Tax Credit: All home and business owners who deploy solar panels before the end of 2019 can claim 30% of their investment as a deduction from federal taxes.

An additional incentive is available for new constructions in New Jersey. Through the NJ Clean Energy Residential New Construction program, homeowners can receive a rebate when purchasing energy-saving appliances or renewable energy systems.

Through significant power bill savings, SREC sales, and tax incentives, installing solar panels in Rahway is a great investment. For those who cannot pay for solar upfront, there are many financing options available that require little or no money down. For example, PSE&G offers a solar loan with a low interest rate that requires $0 down. They assume the upfront cost of the system if you agree to pay back the loan with SRECs. This allows you to go solar with $0 down and see savings starting the first day that your system is operational! Whether you choose a financing option or buy your system outright, installing solar in Rahway is an attractive investment!