New Jersey's Board of Public Utilities has just issued a proposal to transition from its current program called Solar Renewable Energy Certificate (SREC) to a new one. In may 2018 Governor Phil Murphy signed the Clean Energy Act, this holds the Board of Public Utilities to new regulations and closes new applications to the SREC program when 5.1% of the electricity sold in New Jersey comes from solar.
NJBPU president Joseph L. Fiordaliso has this to say about the SREC and what it hopes to accomplish with the new program. “New Jersey’s solar program has been a great success story. Just recently we surpassed 100,000 solar installations, placing us in the nation’s Top 10 for home and business solar installations. It is our goal to create a new system that allows solar to thrive while at the same time protecting New Jersey ratepayers.”
During their December 18th meeting the BPU has begun to phase out the current SREC program and develop new initiatives the will continue the success it has already had but be more cost effective. The BPU has released a list with key principles that will guide them while developing these new initiatives.
- "Provide maximum benefit to ratepayers at the lowest cost;
- Support the continued growth of the solar industry;
- Make sure that prior investments retain value;
- Meet the Governor’s commitment of 50% Class I Renewable Energy Certificates (“RECs”) by 2030 and 100% clean energy by 2050;
- Provide insight and information to stakeholders through a transparent process for developing the Solar Transition and Successor Program;
- Comply fully with the statute, including the implications of the cost cap;
- And Provide disclosure and notification to developers that certain projects may not be guaranteed participation in the current SREC program, and continue updates on market conditions via the NJCEP SRP Solar Activity Reports.
If you wish to read more about New Jersey's plans and commitment to solar go to https://www.solarpowerworldonline.com/2018/12/new-jersey-srec-program-transition-plan/ And give Kelsey Misbrener's article a read!