In 2001, New Jersey had a total of six solar electric systems. Today, New Jersey has over 4,000 solar electric systems and is now 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) which requires utilities supplying electricity to New Jersey consumers to have a portion of that energy generated from solar systems. To comply with the RPS, utilities have to purchase the solar attributes from solar producers in New Jersey.
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. Selling SRECs is a major source of revenue for solar system owners and helps to offset the solar system cost.
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 and also reduce the state's energy consumption by at least 20%. This plan requires installing sufficient solar electric systems to supply 2.1% of the state's energy sources from solar electricity.
The Governor's plan is to have 1,800 megawatts (MW) of solar electric systems installed in NJ by 2021. According to that plan, there should be 135 MW of solar electric systems installed by 2009; However, as of October 2009, there were only 100 MWs installed - falling short by 35 MWs.
It is anticipated that the incentives derived from the SREC program, plus the anticipated rise in energy costs, will encourage more solar installations throughout the state. The result is a corresponding growth within the solar industry that will satisfy the requirements of the Governor's Energy Master Plan.
