On July 28th, 2021, the New Jersey Board of Public Utilities (NJBPU) committed to expanding solar generation with a new incentive program. The new plan is expected to help produce 3,750 megawatts of new solar by 2026.
The successor solar incentive program, also known as SuSI, will be available to homes and businesses across The Garden State. The successor program will replace the Solar Renewable Energy Certificate (SREC) and Transition Renewable Energy Certificate (TREC) system. It is expected to help solar to account for 10% of the state’s electricity needs.
The new program brings big changes to those in New Jersey, and in this blog, we’ll be exploring how the new program works, how much the SREC-II is worth, and how it could impact your savings.
What we’ll discuss:
- Why are TRECs ending?
- What is the successor solar incentive program(SuSI)
- How does the successor program work?
- When will the new solar incentive program start?
- How will the NJ successor program impact the solar industry?
- How does the NJ successor program impact solar savings?
Why are SRECs and TRECs ending?
NJBPU implemented the New Jersey solar renewable energy certificate (SREC) and transition renewable energy certificate (TREC) to reward homeowners and businesses with a credit for every megawatt-hour of electricity they generated.
However, Governor Phil Murphy signed the Clean Energy Act of 2018, which caused a big shift in how the New Jersey Board of Public Utilities would approach solar incentives in the state.
The Renewable Energy Certificate (REC) system would now be replaced with the SuSI program’s long-term solution. The successor solar incentive program will help the state reach its’ Energy Master Plan goal of achieving 100% renewable energy by 2050.
In the new solar incentive proposal, the PBU insisted on balancing ratepayer impacts while ensuring the solar industry continues to thrive.
What is the successor solar incentive program(SuSI)?
The SuSI program is a new solar incentive issued by the New Jersey Public Board of Utilities in New Jersey for residents and businesses that use solar to produce clean energy.
The Board of Public Utilities(BPU) held careful conversations for over two years about implementing the SuSI program.
How does the successor program work?
Like the other REC programs, you will be awarded a certificate SREC-II for every megawatt-hour of electricity you generate from your solar panel system. The certificate is known as SREC-II and can be sold to earn you money.
The SREC-II can be combined with other solar incentives such as net metering and federal tax credits to save you additional money.
The SuSI program contains two sub-programs:
The Administratively Determined Incentive (ADI)
The state will pay solar projects of 5 MW or less, including homes and most businesses, a fixed amount for 15 years. After that, the amount is different for each type of project.
The Administratively Determined Incentive Program will provide fixed incentives for the following categories of projects:
- Net metered solar projects serving homes;
- Net metered solar projects for commercial and industrial customers with a system size of 5 MW or less;
- Community solar projects;
- Projects located on properly closed landfills, brownfields, or historic fills
|Incentive Value ($/SREC-II)||Incentive Value for Public Entities|
|Net Metered Residential||All types and sizes||$90||N/A|
|Small Net Metered Non-Residential on Rooftop, Carport, Canopy and Floating Solar||Projects smaller|
than 1 MW
|Large Net Metered Non-Residential on Rooftop, Carport, Canopy and Floating Solar||Projects 1 MW|
to 5 MW
|Small Ground Mount Net Metered Non-Residential||Projects smaller|
than 1 MW
|Large Ground Mount Net Metered Non-Residential||Projects 1 MW|
to 5 MW
|Community Solar Non-LMI||Up to 5 MW||$70||N/A|
|Community Solar LMI||Up to 5 MW||$90||N/A|
|Interim Subsection (t)||All types and sizes||$100||N/A|
The Competitive Solar Incentive (CSI)
The Competitive Solar Incentive Program is a new program for grid supply projects and commercial and industrial net-metered projects larger than 5 MW. It will award incentives based on the bids that have the lowest cost. This approach will help keep prices down for ratepayers while still giving solar projects the incentives they need to build their power plants.
When will the new solar incentive program start?
The SuSI program received the green light on Wednesday, July 28th, 2021, and Saturday, August 28th, 2021, is the date NJBPU fully implemented the program.
How will the NJ successor program impact the solar industry?
New Jersey has long supported the development of a robust and sustainable market for renewable energy in New Jersey through its increasing RPS and legacy SREC Program. The Successor Program aims to ensure that New Jersey’s solar industry continues to thrive while meeting all cost cap requirements and adapting to changing market conditions. Notably, the Successor Program is intended to maintain the market for behind-the-meter residential, commercial, and industrial installations and community solar projects while significantly accelerating grid supply solar generation.
There is no coincidence why New Jersey is one of the top states in America for solar energy. The New Jersey Board of Public Utilities has had high regard for developing the renewable energy market through its increasing Renewable Portfolio Standard and legacy Solar Renewable Energy Certificate.
The goal of the SuSI Program is to ensure that New Jersey’s solar industry continues to grow while still meeting all state-mandated restrictions. The SuSI Program will maintain the market for behind-the-meter residential, commercial, and industrial installations and community solar projects while increasing grid supply solar generation.
How does the NJ successor program impact solar savings?
The successor program will allow you to take full advantage of the federal tax credits, the SREC-II and, Net Metering. The program is designed to continue to promote savings for those who produce clean energy in New Jersey.
What are the requirements for the project?
NJBPU proposes that only new systems can take advantage of the SuSI. They’d also want to make sure that the project is mature enough before it starts receiving these benefits. That way, there are no bad projects in the queue. It also ensures good ones stay in the queue, and they eventually reach commercial operation.
All projects, except for community solar projects, must be completed within 12 months. They are entitled to one six-month extension. Community solar projects are assigned a completion deadline of 18 months from the date they are conditionally approved by the Board, with the possibility of one six-month extension.
How to register solar projects for the SuSI program
The incentive will be administered the same way as the SREC Program, with each MWh produced during the project’s Qualification Life leading to creating a Successor Program Renewable Energy Credit.
Projects will be required to create an account with the Generation Attribute Tracking System (GATS) administered by PJM-EIS to register generation data.
An agent of the EDCs will purchase RECs and, like SRECs and TRECs, will subsequently be subtracted from the Class I REC compliance obligation of Third Party Electric Suppliers and Basic Generation Service Providers based on the market share of statewide retail electric sales.
Are you thinking of going solar in New Jersey?
The successor solar incentive program is designed to continue to promote savings for those who produce clean energy in New Jersey.
We recommend partnering with a local solar company in New Jersey that knows its way around the state’s solar programs and will assist you at every turn.
Solar Gleam Energy has been assisting homeowners and businesses in transitioning to renewable energy by providing easy-to-understand system designs and high-quality solar installations.
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