The New Jersey Board of Public Utilities (NJBPU) voted unanimously to implement a new solar incentive program that will pave the way for up to 3,750 megawatts (MW) of new solar generation by 2026, doubling the state’s solar capacity.
The Successor Solar Incentive Program (or “SuSI” Program) is the culmination of a nearly three-year Solar Transition process mandated by the Clean Energy Act of 2018 to replace the state’s Solar Renewable Energy Certificate (SREC) program with new incentives that encourage solar development while minimizing ratepayer cost. Solar energy is expected to generate approximately 10% of New Jersey’s total electricity needs once the program is fully implemented.
“In establishing the SuSI Program, we are solidifying New Jersey as a magnet for green jobs and taking yet another step toward Gov. Murphy’s goal of 100% clean energy by 2050,” said NJBPU President Joseph L. Fiordaliso. “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 SuSI Program will take effect beginning at 12:00 a.m. E.T. on August 28, 2021, and contains two sub-programs:
The SuSI Program’s two-part hybrid market approach is designed to uplift solar market segments through long-term, tailored incentives for a variety of project types, allowing NJBPU to contain program costs and provide financial certainty for market participants.
The program will provide one New Jersey Solar Renewable Energy Certificate-II (NJ SREC–II) for every megawatt-hour (MWh) of solar electricity produced by a qualifying facility, with an additional $20/MWh adder for public entities – such as school districts, municipalities, and public colleges and universities – as well as a temporary incentive for projects built on contaminated lands.
Incentive levels for the ADI Program, shown below, range from $70-$120/SREC-II, providing continued support for solar development in New Jersey while also offering significant savings over the prior SREC value of approximately $220.
|Incentive Value ($/SREC-II)||Incentive Value for Public Entities
|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|
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