Trenton, NJ—Today, the New Jersey Board of Public Utilities (NJBPU) unanimously approved the implementation of a new solar incentive program that would open the door to as much as 3,750 megawatts (M.W.) of additional solar output by 2026, doubling the State’s current solar capacity. The Clean Energy Act of 2018 required the State to replace its Solar Renewable Energy Certificate (SREC) program with new incentives encouraging solar development while lowering ratepayer costs. This culminated in the Successor Solar Incentive Program, also known as the “SuSI” Program, resulting from a nearly three-year Solar Transition process. Once the initiative is completely implemented, it is anticipated that solar energy will supply 10% of New Jersey’s total electricity requirements.
NJBPU President Joseph L. Fiordaliso, “by launching the Susi Program, we are reinforcing New Jersey as a magnet for green jobs and taking yet another step toward Governor Murphy’s objective of 100 percent clean energy by 2050.” This unprecedented move prioritizes long-term ratepayer affordability and ensures that the solar business will continue to be a thriving component of our clean energy innovation economy.
At noon, the Susi Program will go into operation. E.T. in 2021 on August 28 and has two sub-programs:
- The Administratively Determined Incentive (ADI) is a fixed incentive payment for all community solar installations, all residential customers, and most commercial and industrial buildings that have solar systems that are net metered and are 5 M.W. or less. The incentive value is guaranteed for 15 years and will vary depending on the size and kind of the project.
- To encourage the lowest ratepayer financial contribution for grid supply projects and net metered commercial and industrial projects more significant than 5 M.W., the Competitive Solar Incentive (CSI) was created. Early to mid-2022 is when the first competitive process is expected to start, after extensive stakeholder engagement this summer and fall.
The two-part hybrid market strategy of the SuSI Program is intended to boost different solar market segments through long-term, tailored incentives for different project types, allowing NJBPU to control program costs and give market participants financial security. For every megawatt-hour (MWh) of solar electricity generated by a qualifying facility, the program will issue one New Jersey Solar Renewable Energy Certificate-II (NJ SREC-II), with an additional $20/MWh adder for public entities, such as school districts, municipalities, and public colleges and universities, as well as a temporary incentive for projects constructed on contaminated lands.
The ADI Program’s incentive levels, which are illustrated below, vary from $70-$120/SREC-II, continuing assistance for expanding solar power in New Jersey while also delivering significant savings over the previous SREC value of about $220.
Image source: nj.gov
To determine how to effectively fulfill the lofty solar targets outlined in Governor Murphy’s Energy Master Plan and subsequently enshrined in the Solar Act of 2021, NJBPU has relied on significant modeling and a thorough stakeholder engagement process. By legislation Governor Murphy recently enacted, the NJBPU is reviewing 410 submissions for Year 2 of the illustrious Community Solar Energy Pilot Program and considering the feasibility of dual-use solar facilities situated on agricultural grounds.
