New Jersey Board Approves Successor Solar Incentive Program

The New Jersey Board of Public Utilities (NJBPU) are implementing a new solar incentive program that will pave the way for up to 3,750 MW of new solar generation by 2026, doubling the state’s solar capacity. The Successor Solar Incentive Program (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 percent 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 Governor Murphy’s goal of 100 percent clean energy by 2050,” says Joseph L. Fiordaliso’s NJBPU president. “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 contains two sub-programs. The Administratively Determined Incentive is a fixed incentive payment for net metered 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 will vary based on project type and size and will be guaranteed for a term of 15 years.

The Competitive Solar Incentive is a competitive solicitation designed to incentivize the lowest financial contribution from ratepayers for grid supply projects and net metered commercial and industrial projects larger than 5 MW. The first competitive process is anticipated to launch in early-to-mid 2022, following additional stakeholder engagement throughout this summer and fall.

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 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.

Original Source: https://solarindustrymag.com/new-jersey-board-approves-successor-solar-incentive-program