New Jersey Solar Sales Tax Exemption

State of New Jersey

Available Solar & Renewable

About This Program

New Jersey Solar Sales Tax Exemption is available to homeowners in Montclair, NJ.

New Jersey exempts solar energy equipment and installation from state sales tax (6.625%), reducing upfront costs for residential solar installations. Applies automatically to qualifying solar purchases and installations.

Estimated tax savings on typical $20,000 solar installation

Federal program, maintained from the official federal source.

Data last verified 2026-06-09. How we verify our data.

In Montclair, NJ, you can combine this program with other local help to cut your cost:

Key Details

  • Exempt from NJ sales tax (6.625%)
  • Applies to solar equipment and installation
  • Automatic at point of purchase
  • No income requirements
  • Reduces upfront solar costs

How to Apply

A grant-savvy contractor in Montclair, NJ can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

You will likely need a contractor to apply

Projects like this almost always need a licensed contractor, and many grants ask for a written estimate as part of your application. Lining up a contractor in Montclair early keeps your application moving.

Get matched with a contractor

Each program sets its own contractor rules. Check the official program page for exact requirements.

Your application paperwork

Form to file: IRS Form 5695

This is a federal tax credit, not a grant you apply for. You claim 30 percent of the cost of a qualifying solar or clean energy system on your federal tax return using Form 5695.

Steps to apply

  1. Have your solar or clean energy system installed and pay for it.
  2. Keep the itemized invoice and proof of payment.
  3. Complete IRS Form 5695 and file it with your Form 1040 for the year the system was placed in service.
  4. If the credit is larger than your tax bill, carry the unused amount forward to next year.

Documents you will likely need

  • Itemized invoice from your installer showing the system cost.
  • Proof of payment.
  • Manufacturer certification statement for the equipment.
  • Your federal tax return (Form 1040) for the year of installation.

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Ongoing state law

Questions about this program?

Ask us. It is free, and a real person answers within a business day.

Email us about this program

Frequently asked questions

Who qualifies for New Jersey Solar Sales Tax Exemption in Montclair?

New Jersey Solar Sales Tax Exemption is open to homeowners in Montclair, NJ. It has no income limit.

How do I apply for New Jersey Solar Sales Tax Exemption in Montclair, NJ?

Apply directly with State of New Jersey using the official program link on this page or call (866) 657-6278. There is no middleman and no fee.

Need a Contractor for This Grant?

Grant-approved contractors understand the documentation, inspections, and timelines, so your funding releases on schedule.

Find More Programs in Montclair, NJ

This is just one of many grants, rebates, and free programs available. Stack them together to maximize your savings.

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