On Oct. 23, the New Jersey Board of Public Utilities issued an order launching the Dual Use Solar Energy Pilot Program, BPU Docket No. QO23090679. This is also known as “agrivoltaics,” as it uses active farmland for solar production.

The pilot program is open to projects at least 500 kilowatts in size and no more than 10 megawatts or less and hosted on unpreserved farmland in active agriculture or horticulture use.

The pre-qualification process will open Jan. 6, 2025, and the closing date is scheduled for Feb. 14, 2025. As a “competitive” process, the timing should not matter, although the board has a long tradition of being “offended” by applications received at or near the deadline, for reasons not entirely clear, but which are better avoided if possible.

The program is predicated upon the Dual Use Solar Energy Act of 2021, P.L. 2021, c. 170, signed into law July 9, 2024.

The Dual-Use Pilot Program is designed to encourage agrivoltaics by studying the compatibility of agriculture/horticulture land with solar voltaic infrastructure. The pilot program is hoped to serve as a foundation and groundwork for the permanent program.

Following public hearings and a public comment period, the Board’s Pilot Plan looks as follows:

The pilot program will run for 36 months after the adoption of the Pilot Program Rules, proposed at the same time as this pilot program under BPU Docket No. QX24080597. This order serves as the opening of the pilot program.

This opening involves the use of a Notice of Incentive Availability (NOIA) that would serve to alert the public of the availability of the program and would provide deadlines, instructions for completion of pre-qualification proposals and the annual capacity targets.

The total capacity target for the first three years of the pilot program is 200 MW, with 50 MW in Program Year 1; Program Years 2 and 3 to be determined; and with an additional 50 MW available to be added at the Board’s discretion for permissive but not yet designated Program Years 4 and 5.

For purposes of the pilot program, a “farmer” is defined as an owner or operator who has gross sales of at least $2,500 of agriculture or horticultural products in the prior year.

The pilot program is not authorized to allow for agrivoltaics to function as community solar projects or to serve as remote net metering projects, but this may change as the board considers its programs.

Application info

The board will impose a two-step process on seeking Solar Renewable Energy Certificates for agrivoltaics projects, with both a pre-qualification/expression of interest, followed by a final application. While not binding, the failure to submit a pre-qualification/expression of interest would foreclose the submission of a final application.

Making moo-ves

Officials gathered at Rutgers University’s Cook College campus in New Brunswick Oct. 1, 2024, to cut the ribbon on a first-of-its-kind project in the Garden State – New Jersey’s inaugural vertical bifacial agrivoltaics system.

Read more about the $7.4 million effort here.

Scoring of the application is weighted, with 40% going to maintaining land usage, 40% to the sought incentive level and costs, 10% to technical feasibility and innovation, and the final 10% to geographic location — especially for overburdened or underserved communities. The pre-qualification criteria include 14 different topics for submission, ranging from tax maps and capacity to construction costs and incentive requests.

The pre-qualification process will be onerous and significant; this is not simply an expression of interest.

Siting is limited to only unpreserved farmland. It is restricted from wetlands, Pinelands, Highlands, Green Acres, or similar lands without express NJBPU, New Jersey Department of Environmental Protection, and Secretary of Agriculture waiver and approval.

The incentives offered are based upon the size of the proposed project.

The pilot program does not create a new category of SRECS; if the project is 5 MW or less, it likely fits into the Administratively Determined Incentive program based upon its nature and form. For over 5 MW but less than 10 MW, it will be set based upon the Competitive Solar Incentive Program, using a board set “proxy” price. In each case, the project can seek a “dual use” adder to the incentive level, as compensation for the increased cost of the proposed dual use projects.

Kenneth Sheehan is an energy law professional and counsel at Genova Burns LLC with over three decades of experience. He has been at the forefront of New Jersey’s energy sector, advising clients on regulatory compliance, clean energy initiatives and infrastructure projects. Sheehan’s experience spans renewable energy, utility law, and energy efficiency, making him a trusted advisor for navigating the evolving energy landscape. At Genova Burns, he leads efforts to develop innovative legal solutions that support sustainable growth and the transition to clean energy in the region.