NJBPU approves Successor Solar Incentive Program, doubling state’s solar capacity
The New Jersey Board of Public Utilities (NJBPU) voted unanimously today to implement a new solar incentive program that will pave the way for up to 3,750 MW of new solar power by 2026, doubling the state’s solar capacity. The Successor Solar Incentive (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 development. of solar energy while minimizing the taxpayer. cost. Solar is expected to generate approximately 10% of New Jersey’s total electricity needs once the program is fully implemented.
“By establishing the SuSI program, we are strengthening New Jersey as a magnet for green jobs and taking another step toward Governor Murphy’s goal of 100% clean energy by 2050,” said NJBPU President Joseph L. Fiordaliso. “This great move has considered many perspectives and ensures that the solar industry will remain a vibrant part of our clean energy innovation economy, while prioritizing long-term affordability for taxpayers. “
The SuSI program will take effect August 28, 2021 at noon ET and will contain two sub-programs:
- The Administratively Determined Incentive (ADI) — a fixed incentive fee for net solar projects of 5 MW or less — including all residential customers and most commercial and industrial buildings — and all community solar installations. The incentive value depends on the type and size of the project and is guaranteed for a period of 15 years.
- The Competitive Solar Incentive (CSI) — a competitive invitation to incentivize the lowest financial contribution from taxpayers for grid supply projects and netted commercial and industrial projects above 5 MW. The first competitive process is expected to start in early to mid-2022, with additional stakeholder involvement throughout this summer and fall.
The SuSI program’s two-part hybrid market approach is designed to enhance solar market segments through long-term, tailored incentives for a variety of project types, enabling NJBPU to control program costs and provide market participants with financial security. The program provides one New Jersey Solar Renewable Energy Certificate-II (NJ SREC-II) for every megawatt hour of solar electricity produced by an eligible 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 polluted lands.
Incentive levels for the ADI program, as shown below, range from $70-$120/SREC-II, providing continued support for New Jersey’s solar energy development while providing significant savings over the previous SREC-II. worth about $220.
In designing the SuSI program, NJBPU relied on extensive modeling and a robust stakeholder engagement process to determine how best to meet the ambitious solar energy goals identified in Governor Murphy’s Energy Master Plan and recently codified in the Solar Act of 2021. Currently, NJBPU . is evaluating 410 applications for Year 2 of the historic Community Solar Energy Pilot program, exploring the potential for dual-use solar installations on farmland in accordance with legislation recently signed by Governor Murphy.
News release from the New Jersey Board of Public Utilities (NJBPU)