The New Jersey Clean Energy Act of 2018 directed the New Jersey Board of Public Utilities (NJBPU) to adopt rules and regulations to “close the SREC Registration Program (SRP) to new registrations once 5.1% of the kilowatt-hours sold in the State are generated by solar electric power connected to the distribution system” (known as the 5.1% Milestone). The Board determined that the 5.1% Milestone was attained on April 30, 2020.
In December 2019, the Transition Incentive (TI) Program was established by a Board Order to provide a bridge between the SREC Registration Program (SRP) and its successor program. This Order included the creation of fixed-price, factorized Transition Renewable Energy Certificates (TRECs).
The Board intends to move New Jersey’s solar energy program in two stages. The first stage includes this platform which facilitates REC payments to aggregators and owners while the second will be a long-term solar incentive program established through a separate rulemaking by the NJBPU.
The Transition Renewable Energy Certificate (TREC) Program Administrator, InClime, is tasked with initiating payments to all registered systems.
Below is a flowchart for the New Jersey Transition Renewable Energy Certificate (TREC) Program’s Payment Process:
The New Jersey TREC program is signaling commercial, industrial rooftop solar energy facilities. The ideal parties are large corporate or industrial energy buyers who can accommodate a rooftop solar energy facility. Shopping centers with large parking lots that can facilitate solar canopies may also fit well under the TREC program. Municipalities that have capped landfills seeking brownfield solar development will also maximize the TREC incentive programs. As NJ gets ready to launch the second tranche of the Community Solar PILOT program the TREC is a key component for these projects getting constructed. As traditional developers still figure out how to finance LMI subscribers with the current carve out.
Stay tuned for more information from YSG Solar on the New Jersey TREC program. Warehouses, property owners who have industrial or empty vacant lots in manufacturing zoned districts should also speak with YSG to better understand how to structure a land lease deal. The New Jersey market does have a robust interconnection queue. PSEG is one of the most experienced IOU’s when it comes to interconnecting DG solar facilitates. PJM is the most liquid wholesale power market in the country, those with large land near substations may be the real winners with this roll out.
Looking for a New Jersey solar installer? Look no further. YSG will identify the ideal solar project for your energy needs and guide you through the entire process of going solar. Send us an email, or call at 212.389.9215 to get started today.
YSG Solar is a project development vehicle responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.