New Jersey legislature approves renewable energy target increase, zero-emissions credit program

New Jersey lawmakers recently approved two sets of companion bills, one which increases the state’s renewable energy target and one that creates a zero-emissions credit program.

The clean energy set of bills, A3723 and S2314, would increase the solar target and increase the overall Renewable Portfolio Standard (RPS) to 50 percent by 2030 as well as lower the Solar Alternative Compliance Payment within the current solar RPS. It would also create a schedule for closing the solar renewable energy credit trading program, enable a community solar program and begin the process for considering future solar incentives.

“The New Jersey legislature took a major step today toward protecting thousands of solar jobs that were at risk,” Sean Gallagher, vice president of state affairs for the Solar Energy Industries Association (SEIA), said. “This bill will enable many more New Jersey residents, businesses and communities to access solar energy. We urge Gov. Murphy to swiftly sign the bill into law and get the state on a path to meet its ambitious clean energy goals.”

The zero-emissions credit program bills, S2313 and A3724, would provide plants with financial credit for producing carbon-free electricity. The bill is expected to prevent the closure of two of New Jersey’s three nuclear power plants.

“Today residents of New Jersey can look toward a future of secure electricity generation and cleaner air thanks to the action taken by legislators in Trenton,” Nuclear Energy Institute (NEI) President and CEO Maria Korsnick said. “This is a remarkable moment for the people of New Jersey and for thousands of nuclear energy industry employees across the state.”

The Salem and Hope Creek nuclear plants provide approximately half of New Jersey’s energy and 97 percent of its emission-free generation. The two plants create approximately 5,800 direct and indirect jobs, according to NEI.

Critics of the zero-emissions credit bill have warned that it could increase electricity costs for the average household by $30 to $40 a year and reduce investments in renewable energy.

Renewable energy provides approximately five percent of the state’s net electricity generation. Solar supplies approximately three-fourths of this renewable energy. The solar industry provides approximately 7,100 jobs in the state, according to SEIA.

Both sets of bills now head to the governor’s desk.