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Market Monitor – New Jersey Expanded Solar Program

On May 23, New Jersey Governor Phil Murphy signed into law the Act Concerning Clean Energy (the act), Assembly Bill A-3723, establishing new clean energy and energy efficiency programs and modifying New Jersey’s renewable energy portfolio standards (RPS). The act, which is effective immediately, directs the Board of Public Utilities (Board) to (i) increase the current RPS requirements; (ii) modify or replace the solar renewal energy credit (SREC) program; (iii) establish a process for achieving new energy storage goals; (iv) adopt energy efficiency and peak demand reduction programs; and as discussed below (v) adopt community solar and remote net energy metering programs.

The act provides for the establishment of community solar and remote net metering programs in New Jersey. By December 19 (210 days after the act was enacted), the Board is required to adopt the rules establishing a community solar pilot program, to be converted into a permanent program within 36 months. The details of the pilot program and its implementation have been left to the Board, although the act provides for a maximum project size of 5 MW and requires that projects be located within the same service territory as participating customers. The act also requires the Board to establish an application and approval process to certify public entities to act as a host customer for remote net metering generating facilities.

While many aspects of the program have yet to be established, the following are known:

  • Program will include a credit on their utility bills for solar energy purchased
  • Residential and Commercial customers will be allowed to participate
  • Allow customers to transfer and potentially buy out credits
  • Goal of at least 50 MWs of community solar available per year
  • May have geographic limitations for participating customers
  • May have minimum number of participating customers per each project (so possibly no 1 customer can take 100% of a project)

Although many details remain uncertain, the programs will like subscribe quickly so if your organization is interested in being considered for participation, please contact your Tradition Energy advisor to request inclusion on future correspondence on this quickly developing program.

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