How Do New Jersey’s Net Metering Policies Work?
There is no specific system capacity limit for New Jersey customers who are interested in participating in net metering. Net metering is not limited to homeowners—the industrial sector, businesses, farmers, nonprofits, schools, and state and local governments are also eligible to participate. According to DSIRE, the following utilities are participants in the net metering program: Atlantic City Electric Co, Jersey Central Power & Lt Co, Public Service Elec & Gas Co, Rockland Electric Co.
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Eligibility for Interconnection and Net Metering
The state of New Jersey adopted interconnection rules that became effective in 2008. These interconnection standards have since been updated to include variance depending on the size of the system. The regulatory policy designates that additional liability insurance is not required for systems that meet criteria for level 1 or 2 interconnection.
After obtaining solar panels for your home, the next step is signing an Interconnection Agreement. Then, you will be able to begin participating in a net metering program. This agreement states that you and your utility company confirm that you are able to sell any excess energy generated from your solar system back to your utility.
Understanding Net Metering in New Jersey
New Jersey utilities provide net metering, in which a customer receives credit toward their electric bill for any excess power generated from their renewable energy system.
Here’s how it works:
- Buy or lease and install a renewable energy system, such as solar panels, that generates electricity.
- Use that electricity regularly throughout the day and night.
- Any surplus energy that is generated but not used is sent back to the grid.
- Your net excess generation is rolled to the following month, and you receive credits toward your bill.
Optimize your solar use to get the most out of net metering. Take advantage of the times your panels may produce the most energy, which are considered peak hours. Typically, net metering credits are generated during sunnier days.
To enroll in net metering, first ensure your solar energy system is installed and then complete the interconnection process with your local utility company.
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Benefits of Net Metering
Besides helping your wallet and utility bill, net metering is a great way to help out fellow energy users. Aging grid infrastructure often means not everyone’s energy needs are met, leading to power outages and reduced stability, especially during inclement weather. But, since solar systems are connected to the power grid, customers with net-metered systems help other New Jersey residents when they send back energy they don’t use.
What Solar Incentives and Rebates are Available in New Jersey?
In addition to net metering in New Jersey, the state offers plenty of other financial solar incentives to homeowners looking to make steps toward a more sustainable financial future. Examples of benefits include:
- Solar Renewable Energy Certificates (SRECs)
- Energy Efficient Commercial Buildings Tax Deduction
- Specialized energy-focused loans and interest rates
- Property tax exemptions
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Conclusion
New Jersey net metering is just one of a wide range of other solar incentives and rebates that complement the federal solar tax credit and help reduce customers’ overall energy bills. This broad, state-wide program can help customers on their journey towards reaching their environmental and savings goals. Just Energy can help you take advantage of great rates and enjoy peace of mind while doing so.
