August 11, 2021
The New Jersey Board of Public Utilities has announced plans for a new solar incentive program in NJ. The Successor Solar Incentive (SuSI) Program will replace the Transition Incentive (TREC) Program which has been running as a placeholder since the closure of the New Jersey Solar Renewable Energy Certificate (SREC) Program a couple of years ago. The NJBPU plans to close the Transition Incentive Program to new applications by August 28, 2021.
The announcement comes after the NJBPU voted unanimously in favor of the new incentive program, which the Board believes will enable up to 3,750 MW of new solar generation by 2026. The SuSI Program is the result of three years of work, after the Clean Energy Act of 2018 mandated the replacement of the NJ SREC Program with a new incentive program which encourages the development of solar while minimizing the cost for ratepayers.
It is believed that solar will generate approximately 10% of New Jersey’s overall electricity needs once the Successor Solar Incentive Program, which was approved on July 28, 2021, has been fully implemented in the state. Following the announcement of the SuSI Program, NJBPU President Joseph L. Fiordaliso said:
“In establishing the SuSI Program, we are solidifying New Jersey as a magnet for green jobs and taking yet another step toward Governor Murphy’s goal of 100 percent clean energy by 2050. This tremendous action has taken many perspectives into consideration and ensures the solar industry will remain a vibrant part of our clean energy innovation economy while prioritizing long-term affordability for ratepayers.”
The Successor Solar Incentive (SuSI) Program
The SuSI Program, which comes into effect on August 28, 2021, 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 a series of tiered incentives to:
Net metered residential solar projects
Net metered non-residential solar projects of 5 megawatts or less
Community solar projects
The Competitive Solar Incentive (CSI): The CSI Program, expected to launch in early-to-mid 2022, will offer incentives for grid-scale projects and net metered non-residential projects greater than 5 MW.
This two-pronged approach has been designed with the aim of further developing a variety of NJ solar market segments via long-term, tailored incentives. Importantly, the design of the SuSI Program will allow the NJBPU to contain program costs while providing financial certainty for market participants. Implementation of this new incentive program will lead to further development of solar projects in both the residential and commercial sectors of the NJ solar market, as well as increased opportunities for power purchase agreements and community solar deployment.
New Jersey SuSI Program Structure
Under this new program, one New Jersey Solar Renewable Energy Certificate-II (NJ SREC–II) will be provided for every megawatt-hour (MWh) of solar electricity produced by a qualifying facility. On top of this, there is an additional $20/MWh adder for public entities such as school districts, municipalities, and public colleges and universities, and a temporary incentive for projects constructed on contaminated lands. The table below shows the tiered incentive structure of the ADI Program, with varying incentive levels ranging from $70-$120/SREC-II depending on market segment and project size.
Administratively Determined Incentive (ADI) Levels
Market Segment
Size (MWdc)
Incentive Value ($/SREC-II)
Incentive Value for Public Entities ($/SREC-II)
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
$100
$120
Large Net Metered Non-Residential on Rooftop, Carport, Canopy and Floating Solar
Projects 1 MW to 5 MW
$90
$110
Small Ground Mount Net Metered Non-Residential
Projects smaller than 1 MW
$85
$105
Large Ground Mount Net Metered Non-Residential
Projects 1 MW to 5 MW
$80
$100
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
Considering a New Jersey solar project? Reach out to YSG Solar today. YSG has been operating in the solar industry for over a decade, developing countless residential and commercial projects throughout New Jersey in that time. Call now at 212.389.9215 or send us an email to learn more.
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.
Sources:
https://www.nj.gov/bpu/newsroom/2021/approved/20210728.html
https://www.seia.org/news/new-jersey-board-public-utilities-implements-new-solar-incentive-program
https://pv-magazine-usa.com/2021/07/29/new-jersey-regulators-vote-to-cut-net-metering-incentives/
Featured Photo by Laurin Berli from Pexels.