New Jersey to back 3.75 GW of fresh solar with new incentive scheme

Source: Twitter @SFGrAdventure

July 29 (Renewables Now) - The New Jersey Board of Public Utilities (NJBPU) on Wednesday gave the nod to a plan to replace its existing solar support scheme with a new incentive programme that is seen to support up to 3.75 GW of solar deployments by 2026.

The new framework, called the Successor Solar Incentive Program (SuSI) will substitute the current Solar Renewable Energy Certificate (SREC) scheme on August 28. It will contain two sub-programmes through which the state will award incentives for projects of different capacities.

More specifically, net-metered solar projects of up to 5 MW, both residential and most commercial and industrial ones, as well as community solar schemes, will be entitled to a 15-year fixed payment under the so-called Administratively Determined Incentive (ADI). The size of the support will range between USD 70 (EUR 59.02) and USD 120 per MWh and will depend on the project type and capacity. More details are available in the table below.

Market segment

Capacity

(MWdc)

Incentive Value (USD/SREC-II)

Incentive Value for Public Entities

(USD/SREC-II)

Net Metered Residential All types 90 N/A
Small Net Metered Non-Residential on Rooftop, Carport, Canopy and Floating Solar Less than 1 MW 100 120
Large Net Metered Non-Residential on Rooftop, Carport, Canopy and Floating Solar 1 MW - 5 MW 90 110
Small Ground Mount Net Metered Non-Residential Less than 1 MW 85 105
Large Ground Mount Net Metered Non-Residential 1 MW - 5 MW 80 100
Community Solar Non-Low-and Moderate-Income (LMI) Up to 5 MW 70 N/A
Community Solar Low-and Moderate-Income (LMI) Up to 5 MW 90 N/A
Interim Subsection All sizes 100 N/A

Grid-connected and net-metered commercial and industrial projects larger than 5 MW will be supported through the Competitive Solar Incentive (CSI). Projects in this category will take part in competitive solicitations, the first one of which is seen to be launched in early-to-mid 2022.

The SuSI programme will provide one New Jersey Solar Renewable Energy Certificate-II (NJ SREC–II) for every MWh of solar power produced. An additional USD 20 per MWh will be given to projects by public entities and a temporary incentive will be provided for solar panels on contaminated lands.

At present, New Jersey has 3,655 MW of solar parks in operation. The state has set a goal of using 100% of clean energy by 2050.

(USD 1.0 = EUR 0.843)

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