The New Jersey Board of Public Utilities (NJBPU) adopted a rule that begins the procedure of phasing out the current Solar Renewable Energy Certificate (SREC) program and developing a new cost-effective initiative that will build upon the successes of the state’s current solar process. The current solar program will be closed when 5.1 percent of the electricity sold by each electric power supplier and each basic generation provider comes from solar electric power generators. Board staff will soon issue a straw proposal that will provide additional guidance to the solar industry and solicit feedback from stakeholders surrounding issues central to the transition process.
“New Jersey’s solar program is a critical component of reaching our goal of 100 percent clean energy by 2050 and I am extremely proud that New Jersey recently surpassed 100,000 solar installations,” said Governor Phil D. Murphy. “We are committed to the continued success of our solar program and the growth of this important industry while best serving the ratepayers and our economy.”
“A thriving solar program is vitally important to helping the state reach its future clean energy goals, reduce dependence on fossil fuels, and combat climate change,” said NJBPU President Joseph L. Fiordaliso. “While we are required by law to close the SREC program, we are extremely optimistic that we will create a more effective and stronger solar energy program in its place.”
New Jersey recently surpassed 100,000 solar installations and solar, along with offshore wind, is one of the most effective ways of helping the state reach Governor Murphy’s goal of 100 percent clean energy by 2050. New Jersey currently ranks in the nation’s top ten for home and business solar installations.
The Clean Energy Act, signed by the Governor in May, required the Board within 180 days of the enactment of the law, to adopt new rules and regulations to set up the closing of the SREC program to new applications upon the attainment of the statutory limit.
The determination of when the 5.1 percent has been attained will be made by the Board in a future Order, following the development of the methodology to determine the threshold. As part of its robust public process on the future of solar, the Board has already received significant input on the 5.1 percent attainment issue. The Board is committed to ensuring that the transition occurs in a timely and orderly manner, and that the industry will continue to grow and develop and provide economic development and job creation throughout the state.
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