On August 12, 2026, the New Jersey BPU advanced a formal process that would codify the 2026–2028 changes of 35% for 2026, 35% for 2027, 40% for 2028 and further lower the EY 2029 Class I target to 45% (from the prior 47%). A formal Notice of Proposal will be published in the New Jersey Register, triggering a 60-day comment period.
The New Jersey BPU is lowering these requirements with the intention to reduce electricity costs for ratepayers in New Jersey. The reduction is for Class 1 RECs and the reduction is not enough to reduce rates in any meaningful way. Prices for spot and future New Jersey Class 1 RECs did not rise as a result of these changes. The following is page 15 of the BPU Notice https://nj.gov/bpu/pdf/publicnotice/Section%2014-8-11%20amendments.pdf with the changes for the Class 1 REC requirements:
RENEWABLE PORTFOLIO STANDARDS
DRAFT RULE AMENDMENTS
N.J.A.C. 14:8-2.3, 2.10, 2.12
§ 14:8-2.3 Amount of renewable energy required
(a) Each supplier/provider, as defined at N.J.A.C. 14:8-1.2, that sells electricity to retail customers
in New Jersey, shall ensure that the electricity it sells each energy year in New Jersey includes at
least the minimum amount of qualified renewable energy required for that energy year, as
specified in this section. Requirements for class I, class II, SRECs, TRECs, and SREC-IIs are set
forth at Table A below:
Table A (No change for Energy Years starting June 1, 2018 and ending May 31, 2025)
What Percentage of Energy Supplied Must Be SREC-IIs, TRECs, SRECs, Class I, or Class II
Renewable Energy