The NJ Board of Public Utilities (BPU) has unanimously approved the selection of a leading firm to assist in the redesign of the state’s solar program. The solar market transition is an integral part of Governor Murphy’s clean energy agenda and is a key component of the Governor’s goal of 100 percent clean energy by 2050.
The BPU will now send its recommendation for contract award to the New Jersey Department of the Treasury, which will review, approve, and ultimately issue a contract. Once Treasury approves the board’s recommendation, the winning bidder and contract will be announced publicly.
The Clean Energy Act of 2018 (the Act), signed by Governor Murphy in May, requires the current Solar Renewable Energy Credit (SREC) program to end no later than June 2021. The transition to a new program fulfills the requirements of the Act and will ensure the continued success of the solar industry.
NJBPU is actively working with stakeholders to define the process to transition the current SREC program to a long-term, sustainable program that will bring down the cost of solar and support growth of this clean, renewable energy source.
New Jersey’s solar program is currently financed through SRECs which 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.
Once approved by The New Jersey Department of Treasury, the selected firm will assess market development potential, evaluate alternative market development policies, and make recommendations. The firm will also work with Board staff to design a robust stakeholder process to develop a study on the solar transition program as required by the Act.
There will be up to four public meetings as part of the stakeholder outreach process.
“We are committed to redesigning the solar program diligently and effectively,” said BPU President, Joseph L. Fiordaliso. “Developing a new solar program is critical to achieving the Governor’s clean energy goals.”
New Jersey is a national leader in the number of solar installations, currently ranked number six and the state is fast approaching the 100,000 mark.
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