New Jersey BySolar
973.784.4191 Renewable Energy Systems for Businesses & Residences

Solar in NJ

In 2001, New Jersey had a total of six solar electric systems. As of July 31, 2012, New Jersey had completed the installation of over 17,132 solar electric systems, making it the second largest market (behind California) for solar power in the United States.

The large growth in solar electric systems has much to do with programs established by the New Jersey Clean Energy Program (NJCEP) and New Jersey Board of Public Utilities (NJBPU). The NJCEP offers commercial, industrial, and municipal customers financial incentives and technical assistance to integrate energy efficiency measures and renewable technologies into building construction and renovation projects.

In 2005, the NJBPU introduced a Renewable Portfolio Standard (RPS). It requires utilities supplying electricity to New Jersey consumers to have a portion of that energy generated from solar energy sources each year. If the utilities fall short, they can either pay a Solar Alternate Compliance Payment (SACP) or purchase solar attributes from owners of solar electric systems to meet their requirements.

Solar attributes are termed Solar Renewable Energy Certificates (SRECs) and are awarded by the NJCEP to the solar system owner for each MegaWatt hour of electricity produced by the owner's system. Because they cost less than the SACP (which is an annually fixed price set by the NJCEP), utility companies prefer to purchase SRECs when they don't meet their renewable energy quota. This makes SRECs a source of revenue for solar system owners and can greatly help offset a solar system's cost.

*It should be noted that while the SACP influences the ceiling price of SRECs, SREC prices also vary based on the market forces of supply and demand.

Learn more about SRECs and Net Metering.

The New Jersey Energy Master Plan

In October 2008, Governor Jon S. Corzine announced an aggressive Energy Master Plan to ensure that, by 2020, New Jersey will derive 30% of its electricity from renewable energy sources with approximately 3% (2,164 Gigawatt hours) of the state's energy sources coming from solar electricity.

In January 2010, NJ passed "The Solar Energy Advancement and Fair Competition Act," which reaffirmed the state's commitment to solar power by requiring that, by 2026, 7% (5,316 Gigawatt Hours) of electricity will come from solar power.

The Solar Rescue Bill

On July 23, 2012, Governor Chris Christie signed S-1925 into law. Called the Solar Rescue Bill, the new law tries to address the oversupply of SRECs currently on the market by ramping up the state's annual RPS requirements through 2023 beginning in June 2013 (for Solar Reporting Year 2014). Starting the same reporting year, the SACP will be reduced to $339 and decline slowly through the year 2028 to $239. Although this law was needed to help stabilize the ongoing development of solar projects in NJ, more still needs to be done in order to prevent a recurrence of the drastic SREC oversupply crisis in the future.

Learn more about the benefits of solar energy in New Jersey:

Solar Energy Incentives

Incentives

Learn what state and federal incentives are available to companies and residents in New Jersey who are looking to install solar energy.

SRECs

SRECs

Find out what this important solar attribute is and how it can generate a monthly income for you.

SREC Cycle

SREC Cycle

See how SRECs are generated and sold in New Jersey.

Net Metering

Net Metering

Learn more about this New Jersey law that gives you credit for any surplus solar energy your system generates.