Utility Solar Financing Incentive (ACE, JCP&L, RECO)

Summary

Photovoltaic (PV) facilities connected to the distribution grid serving New Jersey are eligible to generate Solar Renewable Energy Certificates (SRECs), which energy suppliers in New Jersey use to fulfill their obligations New Jersey's renewable portfolio standard (RPS). As a result of the RPS obligations placed on energy suppliers, SRECs represent a potentially valuable incentive for owners of qualifying systems. Some electric distribution companies (EDCs) in New Jersey (Atlantic City Electric, Jersey Central Power and Light, and Rockland Electric Company) offer Solar Financing Programs which provide long-term SREC purchase contracts to qualifying system owners.* The New Jersey Clean Energy Program (CEP) offers an additional incentive for certain facilities that are enrolled in the Solar Renewable Energy Certificate (SREC) program and which also participate in the EDC Solar Financing programs through solicitations that occur during 2011. This additional incentive program is referred to here as the EDC Solar Financing Incentive (ESFI) program.

The ESFI program provides an incentive of $0.50/W DC for residential systems of up to 10 kilowatts (kW) and non-profit or publicly-owned systems of up to 50 kW. The incentive is capped at 7.5 kW for residential systems and 30 kW for non-profit and publicly-owned systems, leading to a maximum incentive of $3,750 for residential systems and $15,000 for non-profit and publicly-owned systems. Residential systems that use a lease or power purchase agreement (PPA) are eligible for this incentive program; however, non-profit and publicly-owned systems that use a PPA or other tax-advantaged financing may not participate.

In order to qualify to generate SRECs, solar systems must meet certain equipment and installation requirements, several of which are described below:

• Systems must be new and have five-year all-inclusive warranty
• PV modules must listed by UL (or another nationally recognized testing laboratory) and inverters must be UL-1741 and IEEE 929 compliant
• Systems should be equipped with visual indicators and/or controls, have a monitoring capability that is readily accessible to the owner, and be equipped with an energy production meter that meets ANSI C.12 standards
• Behind-the-meter systems must be sized so that annual output does not exceed annual on-site load

Applicants indicate their intent to participate in the ESFI program when they register their system in the SREC program. When an SREC Purchase and Sale Agreement is approved by the New Jersey Board of Public Utilities (BPU), the ESFI incentive will be reserved for the participant for 12 months from the date of the EDC contract.


*The other investor-owned EDC in New Jersey, PSE&G, offers the PSE&G Solar Loan Program rather than the long-term contract programs offered by other EDCs in New Jersey.