New Jersey Board of Public Utilities begins process of switching to new solar program
The New Jersey Board of Public Utilities (NJBPU) adopted Tuesday a rule that begins the process of phasing out the state’s current Solar Renewable Energy Certificate (SREC) program and developing a new solar initiative.
The current solar program will end when 5.1 percent of the electricity sold by each electric power supplier and basic generation provider comes from solar electric power generators. Board staff will soon present a straw proposal to provide additional guidance to the solar industry and request feedback from stakeholders on issues related to the transition process.
“A thriving solar program is vitally important to helping the state reach its future clean energy goals, reduce dependence on fossil fuels, and combat climate change,” NJBPU President Joseph L. Fiordaliso said. “While we are required by law to close the SREC program, we are extremely optimistic that we will create a more effective and stronger solar energy program in its place.”
New Jersey recently surpassed 100,000 solar installations, which contribute to the state’s goal of 100 percent clean energy by 2050. The state currently ranks among the nation’s top ten states for home and business solar installations.
The Clean Energy Act, which the governor signed in May, required the board to, within 180 days of the enactment of the law, adopt new rules and regulations to enable the closure of the SREC program to new applications once the statutory limit is attained.
“New Jersey’s solar program is a critical component of reaching our goal of 100 percent clean energy by 2050 and I am extremely proud that New Jersey recently surpassed 100,000 solar installations,” Governor Phil D. Murphy said. “We are committed to the continued success of our solar program and the growth of this important industry while best serving the ratepayers and our economy.”
The board will develop the methodology to determine the threshold and will, in a future order, determine when the 5.1 percent threshold has been attained.
