The “Solar Energy Advancement and Fair Competition Act” (A3520) was signed into law on January 18, 2010, by former New Jersey Governor, John Corzine. This new law strengthens the development of solar energy and reinforces the Solar Renewable Energy Certificate (SREC) program.
Highlights of the Act which strengthen solar energy are:
New Jersey’s Renewable Portfolio Standard (RPS) for solar is extended to 2026. The SREC fulfillment has be changed from a percentage to a fixed requirement.
The Act requires electric suppliers to procure a minimum of 195 Gigawatt (GWh) hours of electrical power from solar generators in 2010 and increases to 5,316 Gigawatt (GWhs) by 2026. Previous requirements were based upon a percentage of electricity produced.
The BPU has established a 15 year Solar Compliance Alternative Payment (SCAP) schedule. This schedule encompasses energy years 2011-2026. Prior to this revision, the SACP only extended out 7 years.
If the average SREC price decreases for 3 years or if the supply of SRECs meets or exceeds demand for 3 years the requirement increases by 20%.
The 2 Megawatt (MWh) cap was lifted on net metering systems. This amendment provides the opportunity to develop larger solar facilities and meet an increasing demand.
New Jersey Solar Renewable Energy Certificates (SRECs) now have a three year shelf life. NJ SRECs can be monetized for the current energy year and the following 2 energy years.
The “Solar Energy Advancement and Fair Competition Act” (A3520) is a clear demonstration of New Jersey’s commitment to solar energy. Such actions attract renewable energy development and increase investor confidence through the expansion of a reliable SREC program.
The “Solar Energy Advancement and Fair Competition Act” (A3520) was sponsored by Assemblyman Upendra J. Chivukula of District 17 (Middlesex and Somerset), Assemblyman Wayne P. Deangelo of District 14 (Mercer and Middlesex), Assemblyman Peter J. Biondi of District 16 (Morris and Somerset), Assemblywoman Linda R. Greenstein, District 14 (Mercer and Middlesex) and Co-Sponsored by Senators B. Smith, Baroni, and Bateman.
To review the “Solar Energy Advancement and Fair Competition Act” (A3520), click here.