It may come as a surprise, but New Jersey has the best financial incentives in the country for home solar power. The combination of high electricity rates, the federal tax credit, and solar renewable energy credits (which pay you for producing renewable energy) means a typical solar array will pay for itself in just 4 years. After that it’s free electricity and, thanks to the renewable energy credit market, a viable source of income for the next 11 years.

Even without a solar rebate, NJ beats every other state, even sunny California (where solar is immensely popular):

The two left columns show New Jersey solar payback time with and without a state rebate. No rebate = no problem.

Why is the payback time so fast? Here are the 5 reasons why New Jersey is the best place in the country to go solar:

1. Electricity in NJ is expensive

The typical cost of electricity in NJ is $0.19 / kWh, compared to the US average of $0.11 / kWh. That means that the average electricity bill in New Jersey is around $190-$228 per month. An average-sized solar array will cover most of this, knocking about $175 / month off of that bill.

2. The Federal Solar Tax Credit puts 30% back in your pocket*

The Federal solar tax credit is a tax credit for 30% of the total system cost. While you’ll have to shell out the money up front, at the end of the year you will get a tax credit of $11,000 for a $35,000 system (assuming you have tax liability for that year–otherwise it will rollover into another next tax year). Confusing? Yes. But don’t worry – your solar installer can help you with the right forms, and you can always consult your accountant.

3. SRECs turn your roof into an ATM*

Solar Renewable Energy Credits (SRECS) are credits you get for producing renewable energy. A home accrues 1 credit for every 1,000 kWh of solar energy produced, and each credit is currently worth around $650. We’ve estimated that the average home will produce about $5,000 worth of SRECs on average per year. A new solar energy system is eligible to produce SRECs for 15 years, meaning that an average roof could earn over $75,000 by selling credits over that time period.

4. You’re getting a 15-30% discount on panels and installation with group discounts

Although we can’t disclose our south New Jersey 1BOG rate for solar just yet**, we can tell you the price for our last New Jersey solar campaign: $5.54 / DC watt. If you went to a local big box store for solar today you would see prices around $8 per DC watt–or $17,958 more for an average sized system. Our group discount is typically around 15% off competitive market rates, although in New Jersey we anticipate it will be considerably more than that.

5. If you don’t want to purchase, you can go solar for $0 down.

Our local installation partner offers PPA-financing through SunRun, which means that you can install a system for $0 out of pocket.

Even though it’s our job to bring you good deals, we’re blown away by how good solar in New Jersey looks right now. There’s no better time to make the investment, especially since you can start generating SRECs as soon as the system is installed.

Want to evaluate the numbers for yourself? Use our calculator to estimate the cost of solar panels for your home. Want access to the 1BOG group discounts on solar? Sign up now! It’s free.

Stay tuned, as we’ll be writing more about solar in New Jersey soon. You can also learn more about our Southern NJ Solar Campaign.

* We are not tax professionals, so please make sure to consult your accountant on the tax implications of a solar installation. Additionally, please be aware that these calculations are based on several assumptions, including the future cost of electricity and value of SRECs. Yearly SREC payments have been updated in this post based on the most up-to-date information we have.

**1BOG discounted member pricing for southern New Jersey will be announced on Monday (June 14). Sign up here to be among the first to get 1BOG exclusive pricing details.

Solar News: The International Energy Agency (IEA) presented two new analyses in Valencia, Spain this week, a Solar Photovoltaic Energy Technology Roadmap and a Concentrating Solar Power Technology Roadmap.

A key long-term finding from these analyses is that 20-25% of global electricity production could be from solar electricity by 2050.

We’re curious: how does the US fit into that, and how much of this will be residential solar?

Together, IEA found that photovoltaic solar (aka ‘solar PV‘) and concentrating solar power could create 9,000 Terawatt hours of electricity in 2050, with solar PV providing approximately half of that.

As of 2008, IEA reported that the US had 1.2 Gigawatts of installed solar PV. Although the total amount has been rising over the years, the US’ percentage of the world total has declined, from 18% in 2000 to 13% in 2004 to 8% in 2008. Germany and Spain, with strong world-leading solar policies, have grown at a much faster rate. Nonetheless, recent analyses by the Solar Energies Industry Association (SEIA) in its 2009 US Solar Industry Year in Review show a steep rise in installed capacity in 2009 and a lot in the pipeline (indiciating that this steep rise may continue for awhile).

The average cost of solar PV has dropped significantly and combined with innovative group buying programs like 1BOG offers and government incentives, many more people are putting solar panels on their houses and businesses.

Prices for solar PV modules dropped 40% since mid-2008 and average installed capacity cost fell approximately 10% from 2008-2009 (see graph below).

Largely as a result of this, installed solar capacity at the end of 2009 rose to 2.1 Gigawatts in the US according to SEIA.

The European Photovoltaic Industry Association (EPIA) also recently reported that “The U.S. [PV electricity] market finally took off significantly with around 477 MW installed in 2009 and appears as a potential leading market for the coming years.”

Environment America has reported that 35-40% of homes nationwide could have PV installed on them. With 13% of utilities believing that centralized electric generation will be obsolete by 2050 and rooftop solar installations growing faster than utility-scale solar, this may not be a fairytale dream but an actual possibility.

There are a lot of incentives out there and people are finally doing it. Want to join the solar wave? Look into putting solar on your home or business today.

Government’s Role

Of course, as Environment America reported a couple months ago when they predicted that 10% or more of total electricity consumption in the US could come from solar energy by 2020, clear policies to support solar energy need to be implemented soon in order to achieve these levels. Progressive policies need to be implemented to make sure solar achieves grid parity and becomes competitive with other forms of electricity.

“This decade is crucial for effective policies to enable the development of solar electricity,” IEA Executive Director Nobuo Tanaka said. “Long-term oriented, predictable solar-specific incentives are needed to sustain early deployment and bring both technologies to competitiveness in the most suitable locations and times.”

Solar PV

IEA reports that solar PV will reach grid parity (the point at which solar electricity and regular grid electricity are equivalent) in many regions by 2020, and that at that point policies in those regions will need to shift from a focus on economic incentives to a focus on fostering self-sustaining markets with continued support for grid access and R&D.

Key actions to promote PV electricity in the next 10 years or so include tho following, according to IEA:

Concentrating Solar Power (CSP)

IEA reports that by 2050, CSP could provide up to 11.3% of global electricity. It “can be expected to become a competitive source of bulk power in peak and intermediate loads by 2020, and of base-load power by 2025 to 2030.”

Key actions IEA says governments should take within the next 10 years to promote CSP include:

The goals are clearly attainable now. To achieve them, governments just need to step it up and set the stage for greater solar proliferation.

Photo Credit: david.nikonvscanon via flickr/CC license
Graph Credits: SEIA

One Block of the Grid is revving up its group discount program for home solar panel installations in New Orleans. In partnership with South Coast Solar, 1BOG has obtained a substantial mark-down to $6.65 per watt, around 15% below standard rates.  Combined with massive Louisiana solar tax credits (50%) and the government’s 30% Federal tax credit, an average house can get practically all of its power from the sun for a one-time installation price of $6,000— a cost that will be covered by energy savings within three to four years.  (These figures will vary depending on orientation towards the sun, shade, local energy prices. Check out our solar estimate tool for a quick calculation.)

According to the National Renewable Energy Lab’s (NREL) records, 1BOG is responsible for a significant number (33) of New Orleans’ domestic solar installations (NREL’s map says 69 total installs, but we suspect this number is under-reported).

New Orleans is seen as an especially viable market for solar power due to the continuing reconstruction efforts following Hurricane Katrina.  But in the wake of that tragedy, the city has an opportunity to rebuild and modernize rapidly.  For instance, a solar-powered super-structure has been proposed for construction along the banks of the Mississippi River.  Brad Pitt has also spearheaded a campaign to build solar-powered homes.

The time is right to go solar in the Big Easy, and 1BOG makes doing so cheaper and easier than ever before.

PRESS RELEASE

Partnering with South Coast Solar, 1BOG Offers Solar Group Discounts for Homeowners

San Francisco, Calif. – April 20, 2010 – One Block Off The Grid (1BOG), the nation’s largest solar panel group discount company, today announced the launch of a New Orleans solar group purchase campaign designed to make it easier and more affordable for homeowners in New Orleans to go solar. Homeowners interested in solar power will be eligible for a discounted rate of $6.65 per watt through local installer South Coast Solar, as well as free education, support and online tools.

After a month-long vetting process, 1BOG selected South Coast Solar for their excellent group pricing, products, warranties and history of successful installations.

“Federal and state incentives cover 80 percent of the cost of a solar electric system, making going solar already a no brainer for New Orleans homeowners,” said 1BOG CEO, Dave Llorens. “When you add the 1BOG unique group discount on top of that, this is a tremendous deal. As a Louisiana native, I’m excited that this campaign has the potential to make New Orleans a solar leader.”

“We are thrilled that South Coast Solar was selected as the installer of choice to service the second New Orleans 1BOG campaign — an easy way for our community to add value to their homes, lower bills and stimulate the local economy,” said Tucker Crawford, CEO at South Coast Solar. “1BOG’s community approach provides confidence for homeowners that solar is the right thing to do and that it’s a great investment for their wallets, homes and the environment.”

Together with local architect and developer Wisznia | Architecture + Development, 1BOG and South Coast Solar will host an educational networking event on Thursday, May 20, 2010 from 6:00 pm to 9:00 pm CT to explain the solar process and provide information about available rebates and incentives for homeowners. Several New Orleanians who have already installed solar panels through 1BOG will be on hand to share their stories.

The New Orleans 1BOG program is available now to local homeowners throughout the greater New Orleans area through July 20, 2010. For more information, details about pricing and products or to sign up, visit the 1BOG New Orleans homepage at http://SolarNewOrleans.1BOG.org/.

About One Block Off the Grid:
One Block Off the Grid (1BOG) is the group purchase program that negotiates big discounts on solar power for homeowners to make home installations easy and affordable. For every regional campaign, 1BOG conducts a rigorous and impartial selection process to identify an ideal installer partner, based on their pricing, track record of quality installations, reliable warranties, premium products and a viable business model. 1BOG organizes interested homeowners into a large solar buying group to offer the best deal for solar power without having to become solar experts themselves. 1BOG was founded in 2008 in San Francisco, California and has active campaigns in 10 cities across the US. For more information, visit www.SolarNewOrleans.1BOG.org.

About South Coast Solar:
Headquartered in New Orleans, South Coast Solar, LLC is the premier Solar Electric (PV), Solar Hot Water, and Lighting Efficiency Systems design/build contractor in the Southeast. SCS is also Louisiana’s first renewable energy systems Building Performance Contractor. Their unique approach to energy efficiency solutions for residential and commercial buildings is unrivaled in the Southeast. By combining renewable energy with energy efficiency measures, they provide their clients with a comprehensive energy savings solution. For more information, visit www.southcoastsolar.com.

1BOG is proud to be a part of this growth as we approach 700 installations.  1BOG has run successful campaigns throughout California (including the Bay Area, Sonoma, San Diego, Los Angeles and the Coachella Valley) and we are wrapping up our first New Jersey campaign.  We are also moving into new regions this summer in pursuit of our goal to increase solar adoption nation wide – keep an eye on our website to see if we’re coming to your city next!

Our New Jersey installer partner, The Solar Center, is working with us to ensure that all 1BOG customers can get this rebate while it lasts.  They will be expediting the rebate applications as soon as a contract is signed in order to get 1BOGers in under the impending deadline.

“The solar rebates in New Jersey have been a fantastic incentive for homeowners considering solar,” said Ed Steins, CEO of The Solar Center. “The fact that we are nearing 20 MW of solar projects shows that residents are embracing solar as a way to conserve energy and save money.  We hope we can help as many 1BOG customers as possible take advantage of the current rebate before it goes down.”

For all the New Jersey 1BOGers who are considering solar, now is the time to act while the best rebate is still available!

A beacon of environmentalism, during the trip, the boat will make multiple stops around the world.  The skipper, Raphael Domjan, is committed to sustainability and has long sought a way to sail around the world using minimal energy.  Domjan also plans to use this trip to illustrate how solar can be used in shipping.  Shipping is the primary way the world transports good and is responsible for over 1 billion tons of carbon dioxide emissions each year.  We have yet to help a nautical 1BOGer to go solar, but if this idea can further solar adoption, 1BOG is all for it.

One of the PlanetSolar stops is San Francisco – 1BOG will definitely be there to check it out!

Basically, net metering works like this:

• When utility customers are using energy from the grid, their meters spin forward.
• When customers use energy they have generated from their solar panels, the meter spins backward.
• Customers are then only charged for the net amount of grid energy used.
• If this bill is signed, customers will be able to do only pay the net amount until 5% of the utility’s peak demand is reached.

If Governor Schwarzenegger signs this bill, which we hope he will do, this new bill will become law.  Currently, net metering is capped at 2.5%.  This bill would double that cap to 5%.

This is good news for anyone considering solar.  Being able to decrease energy bills and save money makes solar more attractive and affordable for homeowners.  With the continued government support of clean energy and energy efficiency (like the upcoming SF PACE program),  the number of California residents going solar is sure to increase!

On Wednesday October 28th, the conference organizers are throwing the exhibit floor open to the public for free.

The evening features over 900 exhibits of the latest solar technology , a job center for aspiring industry workers, and special educational sessions on timely solar issues, taught by top-notch colleagues like Andy Black of On-Grid Solar and Liz Merry of Verve Solar.  It’s a great opportunity to learn the latest about world of  solar.  And it’s free.

Wednesday, October 28th
5:30 to 8:30 pm
Anaheim Convention Center.

Details here:

http://s36.a2zinc.net/clients/sepa/sepa2009/public/Content.aspx?ID=359&sortMenu=105009

The Vote Solar Initiative, a non profit organization and legislative lobbyist with the aim of bringing solar into the mainstream, has urged renewable energy advocates to express to LADWP what they want in terms of solar: “Tell LADWP that you want the opportunity for homes, schools, businesses and public agencies to go solar to reduce their electricity bills. That means full funding and follow-through of the California Solar Initiative rebate program.

LADWP’s share is 280 MW of incentives to help Los Angeles residents go solar. Vote Solar wants to ensure that LADWP does the most it can to bring solar into the renewable energy mix. In order to do this the public must make their voices heard and encourage LADWP to, as Vote Solar suggests, purchase wholesale solar generation of every stripe, including centralized solar thermal electric plants (a benefit of such plants is energy storage, something solar panels cannot do). The California Public Utilities Commission is developing a new market-based feed-in tariff program that could possibly provide a model.

To LA residents: Encourage LADWP to do the most with its incentives and invest in a variety of solar energy technologies.

To voice your opinions on solar, participate in the LADWP public workshops being held this month. There are three workshops that you can still attend, on the 26th, the 29th, and the 30th (Sign up at  http://www.ladwpsolarnews.com/workshops )

This is your chance to ensure that solar is available in your area!

If you have any questions about this, please feel free to contact us!