Translator Disclaimers
For Immediate Release: Contact: Peter Peretzman
Date: 12/26/2018 609-984-9707
The Clean Energy Act, signed by Governor Phil Murphy in May 2018, required the Board to adopt new rules and regulations closing the SREC program to new applications when 5.1 percent of the electricity sold in New Jersey
TRENTON—

The New Jersey Board of Public Utilities (NJBPU) staff has issued a straw proposal to assist in the transition from the current Solar Renewable Energy Certificate (SREC) Program to a new system. The Clean Energy Act, signed by Governor Phil Murphy in May 2018, required the Board to adopt new rules and regulations closing the SREC program to new applications when 5.1 percent of the electricity sold in New Jersey by each electric power supplier and each basic generation provider comes from solar electric power generators.

 

“New Jersey’s solar program has been a great success story,” said NJBPU President Joseph L. Fiordaliso. “Just recently we surpassed 100,000 solar installations, placing us in the nation’s top ten 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.”

 

At its December 18 board meeting, the Board adopted a rule beginning the process of phasing out the current SREC program and developing a new cost-effective initiative that will build upon the success of the state’s current solar process.

 

To help guide the transition process, Board staff has released, as part of the straw proposal, the following key principles:

 

  • Provide maximum benefit to ratepayers at the lowest cost;
  • Support the continued growth of the solar industry;
  • Ensure that prior investments retain value;
  • Meet the Governor’s commitment of 50 percent Class I Renewable Energy Certificates (“RECs”) by 2030 and 100 percent 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.

The Clean Energy Act defines the transition point as “the attainment of 5.1 percent of the kilowatt-hours sold in the State by each electric power supplier and each basic generation provider from solar electric power generators connected to the distribution system.” For purposes of the straw proposal, “attainment” means that 5.1 percent of the actual kilowatt-hours sold in the state are being generated by solar electric power generators. As the transition process unfolds, Board staff is proposing that SRECs be divided into three categories:

 

  • Legacy SRECs created by projects that filed an SRP Registration and entered into operation prior to the time when the 5.1 percent threshold is reached;
  • Pipeline SRECs created by projects that filed an SRP Registration, but which have not begun operation prior to the attainment of the 5.1 percent threshold;
  • The SREC Successor Program for projects that filed an SRP Registration after the 5.1 percent threshold is reached.

 

A robust public engagement process will occur as the Board moves toward a new solar program. The Board has released a series of stakeholder questions in the straw proposal and invited interested parties to provide input on the transition and SREC Successor Program.  The public stakeholder process will take place in the first half of 2019. The first public stakeholder meeting will take place Friday, January 18, 2019, at Rutgers University, College Avenue Student Center, Multipurpose Room, 2nd Floor, 126 College Avenue, New Brunswick, at 10:00 a.m.

About the New Jersey Board of Public Utilities (NJBPU)
The NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by the NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents.
To find out more about the NJBPU, visit our web site at www.nj.gov/bpu.

 

 

About the New Jersey Clean Energy Program (NJCEP)
NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State's residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers' energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is www.NJCleanEnergy.com.