The New Jersey Board of Public Utilities has issued an order clarifying language in the 2018 Clean Energy Act by establishing that all Solar Renewable Energy Certificate (SREC) applications made after Oct. 29 will have a lifespan of ten years.
Under the plain language of the new law signed by Governor Murphy in May, the ten-year SREC term applies only for certain project applications seeking to be connected to the distribution system.
“This action by the board clarifies the SREC life span and is in line with the intent of the Clean Energy Act, which is that all SRECs have a life span of ten years, not only certain projects seeking connection to the distribution system,” said NJBPU President Joseph L. Fiordaliso.
New Jersey’s solar program is currently financed through SRECs and these are a tradable commodity. SRECs are generated by owners of solar projects for the energy they produce and then sold to electricity suppliers. Costs are then typically passed on to ratepayers.
“Limiting all SRECs to ten years will provide a direct savings to ratepayers without imposing significant financial hardship on developers,” President Fiordaliso added.
This order is a key part of New Jersey’s solar market transition, in line with Gov. Phil Murphy’s goal of 100 percent clean energy by 2050. BPU is actively working with stakeholders to define the process for the closure of the current Solar Renewable Energy Credit (SREC) program and transition to a long-term program that supports continued growth of solar in New Jersey.
A thriving solar industry is critical to achieving 100 percent clean energy. New Jersey is number six nationally in the number of solar installations and is fast approaching the 100,000 mark. The BPU will continue to work with the solar industry to ensure a smooth transition.
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