NJBPU approves Year 2 application process for state’s community solar program

Published on October 06, 2020 by Dave Kovaleski

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The New Jersey Board of Public Utilities (NJBPU) approved the Year 2 application process for the State’s Community Solar Energy Pilot Program.

The New Jersey Clean Energy Program runs the Pilot Program. It provides solar energy access through a subscription-based model that virtually connects customers to a solar installation within their electric utility company’s territory. The resulting energy output is divided among multiple participants known as subscribers, which can be homes or businesses. It is reflected as a credit on their utility bill.

This program ensures that underserved and overburdened communities in the state have access to renewable energy’s health and financial benefits. In other words, community solar makes “going solar” possible without purchasing and installing solar panels.

“Community solar is a key element of Governor Murphy’s vision for 100 percent clean energy by 2050,” NJBPU President Joseph Fiordaliso said. “The dual benefit of the Pilot Program is that we can expand renewable energy in New Jersey while increasing access to its benefits for our historically underserved communities. We know that meaningful climate action is inextricably linked to addressing the burdens faced by environmental justice communities. By leveling the playing field, we will ensure an equitable and inclusive clean energy economy that creates jobs, combats climate change, and provides benefits for all Garden State residents.”

Year 2 has allotted 150 MW of community solar energy capacity – double the capacity of Year 1. It includes a carve-out to ensure at least 40 percent of awarded projects serve low- to moderate-income (LMI) customers. In Year 1, NJBPU awarded 78 MW to 45 projects, all of which will dedicate at least 51 percent of their capacity to LMI communities.

The Pilot Program, established in January 2019, runs for three years. Once fully implemented, the Pilot Program will power an estimated 45,000 homes in New Jersey. Currently, the staff is working with stakeholders to develop a permanent program.

Applications for Year 2 are due Feb. 5, 2021, at 5:00 p.m. ET. Applications will be reviewed and scored based on evaluation criteria that include: low- and moderate-income and environmental justice inclusion (25 points max.); siting – with priority given to landfills, brownfields, and parking lots among others, and bonus points for site enhancements such as landscaping or pollination support, or locating in a redevelopment or opportunity zone (20 points max. plus bonus points); community and environmental justice engagement (15 points max.); product offering, with a preference for guaranteed customer savings of greater than 20 percent and flexible terms (15 points max.); other benefits such as job training and co-benefits such as energy storage, EV charging, or energy efficiency (10 points max.); and geographic location within utility service territory and project maturity (each 5 points max.).

Applications must receive a minimum of 50 points to be considered.