August 27, 2021
As discussed in our recent article, the New Jersey Board of Public Utilities (NJBPU) has unveiled a new solar incentive program for the state. The Successor Solar Incentive (SuSI) Program will replace the Transition Incentive (TI) Program which had been acting as a bridge program following the closure of the Solar Renewable Energy Certificate (SREC) Program a number of years ago.
This new incentive program comes after years of discussion and debate, ultimately resulting in a unanimous vote from the NJBPU in favor of the SuSI Program. The Board believes that the incentive program will contribute significantly to the further growth of solar in New Jersey, enabling up to 3,750 MW of new solar generation by 2026.
When Does the SuSI Program Launch?
The SuSI Program will go live on August 28, 2021, with the TI portal closing to new applications on Friday, August 27, 2021 at 11:59:59 p.m. EST—barring a couple of exceptions which we have outlined in detail in a previous article available here.
How Does the New Jersey Successor Solar Incentive (SuSI) Program Work?
The Successor Solar Incentive (SuSI) Program includes two sub-programs—The Administratively Determined Incentive (ADI) and The Competitive Solar Incentive (CSI).
The Administratively Determined Incentive (ADI): The ADI Program will provide administratively-set tiered incentives for:
Net metered residential projects
Net metered non-residential projects 5 MW or less
All community solar projects
(On an interim basis) Projects which were previously eligible to seek conditional certification under Subsection (t)
The Competitive Solar Incentive (CSI): The CSI Program, which is projected to launch in early-to-mid 2022, will provide competitively-set incentives for:
Grid supply projects
Net metered non-residential projects greater than 5 MW
Please note that the NJBPU is continuing to work with stakeholders to develop the design of the CSI Program ahead of the anticipated launch date in 2022. To track the progress of the CSI Program, keep an eye on the ‘Solar Proceeding’ page on the New Jersey’s Clean Energy Program website.
How Does the Administratively Determined Incentive (ADI) Program Work?
The ADI Program, as noted above, is one of two sub-programs which make up the New Jersey Successor Solar Incentive (SuSI) Program. It is the first of the two sub-programs which will launch under the SuSI Program when it goes live on August 28, 2021. Below you will find details of those facilities which are eligible to participate in the ADI Program.
Net-metered residential facilities
Non-residential solar facilities 5 MWdc or less
Community solar PY2 projects
(On an interim basis) Those projects located on property types which were previously eligible for conditional certification under the Subsection (t) program
These project will now be referred to as ‘interim Subsection (t) projects’
Additionally, these facilities must meet certain criteria to satisfy eligibility requirements:
Solar facilities will only be eligible for the ADI Program if they haven’t reached commercial operation (permission to operate) prior to the launch of the ADI Program
Those facilities which reached commercial operation prior to the August 28, 2021 launch date will require special dispensation from the NJBPU in order to participate in the ADI Program
All installed solar equipment must be new
Solar facilities must be connected to to a distribution/transmission system owned/operated by a New Jersey public utility or local government unit
Solar facilities which receive incentives and are 1 MWdc or greater in size are subject to the Prevailing Wage Act N.J.S.A. 34:11-56.25, et seq
SuSI Capacity Blocks for the Energy Year 2022
The image below, courtesy of the NJBPU and New Jersey’s Clean Energy Program, shows the capacity blocks for each market segment for the energy year 2022.
The ADI Program will remain open for new registrations in each of these market segments on a first come, first served basis until the MW block for that segment is fully subscribed, or until June 1, 2022—whichever comes first.
A capacity block is considered fully subscribed when the last registration received in the ADI portal brings the total capacity of all registrations in that block over the capacity stated in the image above.
Once this happens and the capacity for that particular market segment has been exceeded, the registration portal will be closed for that segment.
There will be no waiting list option for projects seeking to enter a capacity block for a market segment that has been fully subscribed according to the guidelines above.
If you’re interested in developing a New Jersey solar project then reach out to YSG Solar today. YSG will identify the ideal project for your energy needs, ensuring the biggest savings on your utility bill and the best return on your investment. Call the office now at 212.389.9215 or send us an email to learn how much you could save.
YSG Solar is a project development company 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.
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Featured Photo by Nuno Marques on Unsplash.