Please ensure Javascript is enabled for purposes of website accessibility

NJ BPU approves short-term solar financing program

The state’s public utilities board on Friday announced plans to move ahead with a new stop-gap financing mechanism for community solar energy projects while it seeks a longer-term mechanism.

New Jersey’s Clean energy act requires that the state overhaul the financing method, known as Solar Renewable Energy Certificates (SREC), once 5.1 percent of the energy sold in the state market is made up of solar.

Utility companies would purchase SRECs from solar producers to satisfy the state requirements for solar energy benchmarks, and the credits can be traded.

Fr

According to CenstraState Senior Vice President and Chief Operating Officer Thomas Scott, the solar efforts at the hospital will also help to support the Township's electrical grid. KDC Solar President and CEO Alan Epstein echoed the assertion: “We are delighted to have partnered with CentraState on yet another solar project. They have clearly recognized the multiple benefits that this new solar carport will deliver to not only the hospital but the Township of Freehold and the community at large as well." - CENTRASTATE

In Freehold, CenstraState Senior Vice President and Chief Operating Officer Thomas Scott said recent solar efforts at the hospital will also help to support the Township’s electrical grid. KDC Solar President and CEO Alan Epstein echoed the assertion: “We are delighted to have partnered with CentraState on yet another solar project. They have clearly recognized the multiple benefits that this new solar carport will deliver to not only the hospital but the Township of Freehold and the community at large as well.” – CENTRASTATE

iday’s measure – approved by the Board of Public Utilities – creates the 15-year Transition Renewable Energy Certificate (TREC) program, which is available for any projects being worked on as of Oct. 29, 2018 that were not complete when the 5.1 percent milestone was met.

The TREC program will incentivize projects such as the installation of community solar, new grid systems for the electricity, solar panels at landfills and different environmental clean-up sites, and solar atop non-residential buildings.

Next year, the BPU will have to determine the monetary value of each TREC.

Under the SREC program, a single certificate was generated for every 1,000-kilowatt-hours of solar electricity.

The BPU said Friday it would look at either a 15-year flat price of $152 for each TREC, or a three-year price of $65 per TREC, followed by $189 for the remaining 12 years.

Gov. Phil Murphy signed the Clean Energy Act in May 2018, as part of his broader effort to boost a so-called “clean energy economy.”

Those efforts now call for the generation of 7,500 megawatts of offshore wind by 2035, and for the state to be 100 percent reliant on clean energy by 2050.

Daniel J. Munoz
Daniel Munoz covers politics and state government for NJBIZ. You can contact him at dmunoz@njbiz.com.

NJBIZ Business Events

NJBIZ Healthcare Heroes 2021

Tuesday, August 24, 2021
NJBIZ Healthcare Heroes 2021

NJBIZ Food Day 2021

Wednesday, August 25, 2021
NJBIZ Food Day 2021

NJBIZ Best Places to Work 2021

Thursday, September 09, 2021
NJBIZ Best Places to Work 2021