April 16, 2021
The New Jersey Transition Renewable Energy Certificate (TREC) Program is a bridge program between the previous Solar Renewable Energy Certificate (SREC) program and an as-yet undecided new solar incentive program for the state. In terms of compensation, pricing for the TREC Program is determined by factorization of a base compensation rate, with different factors assigned to different project types.
How is New Jersey TREC Pricing Determined?
The base compensation for the New Jersey TREC Program is $152/REC. REC prices are applied with a TREC factor of either 1 ($152.00), 0.85 ($129.20), or 0.6 ($91.20), depending on the project type in question. The table below outlines the different TREC factors for each project type, and the compensation rate available for each based on the applicable TREC factor. You can also download a copy of the table here.
New Jersey TREC Pricing
Project Type
TREC Base Price
TREC Factor
Effective Price
NJ Certification Number
Subsection (t): landfill, brownfield, areas of historic fill
$152
1
$152.00
NJ-XXXXXX-SUN-I-LBH-TREC
Grid Supply (subsection(r)) rooftop
$152
1
$152.00
NJ-XXXXXX-SUN-I-GSR-TREC
Net-metered non-residential rooftop and canopy
$152
1
$152.00
NJ-XXXXXX-SUN-I-NMNRRC-TREC
Community Solar
$152
0.85
$129.20
NJ-XXXXXX-SUN-I-CS-TREC
Grid supply (subsection(r)) ground mount
$152
0.6
$91.20
NJ-XXXXXX-SUN-I-GSGM-TREC
Net-metered residential ground mount
$152
0.6
$91.20
NJ-XXXXXX-SUN-I-NMRG-TREC
Net-metered residential rooftop and canopy
$152
0.6
$91.20
NJ-XXXXXX-SUN-I-NMRRC-TREC
Net-metered non-residential ground mount
$152
0.6
$91.20
NJ-XXXXXX-SUN-I-NMNRG-TREC
Floating solar panels
$152
0.6
$91.20
NJ-XXXXXX-SUN-I-FLT-TREC
What is the New Jersey TREC Program?
As noted above, the purpose of the New Jersey TREC Program is to bridge the gap between the old SREC Program and a new solar incentive program for NJ. The TREC Program went live in December 2019 and, in many ways, it is quite similar to the old SREC Program. However, while both programs offer incentives for solar generation on a MWh (megawatt hour) basis, there are some key differences.
Under the SREC Program, pricing was variable, with value dependent on market demand & supply. With the TREC Program, pricing is fixed for the duration of the program and, as we can see from the table above, TREC Pricing is determined using a factorization method, with prices varying depending on the type of solar system installed. Further information about New Jersey TREC Pricing and factorization is available here from the New Jersey Board of Public Utilities (NJBPU).
The flowchart below outlines the payment process for the New Jersey Transition Renewable Energy Certificate (TREC) Program.
To learn more about the New Jersey Solar Transition, please visit the New Jersey Clean Energy Program website.
Learn More the New Jersey TREC Program
To learn more about the New Jersey TREC Program, please consult our previous articles on the topic by clicking the links below:
Want to go solar in New Jersey? Reach out to YSG Solar today. Whether you’re interested in residential, commercial, or community solar—or even leasing your land for a solar farm project—YSG can guide you in the right direction and ensure the biggest energy savings & the greatest return on your investment. To get in touch, send us an email or call at 212.389.9215.
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.
Sources:
https://trecsnj.com/faq-items/how-is-my-trec-price-determined/
https://trecsnj.com/wp-content/uploads/2020/08/TREC-Factor-Table.png
Featured Photo by Macau Photo Agency on Unsplash.