For all media inquiries,
please contact:
Ariel Rivera
Communications Specialist
973.530.2453
arivera@csglaw.com

Solar Renewable Portfolio Standard Acceleration Bill Introduced

November 14, 2011

On November 10, 2011, New Jersey State Assemblyman Upendra J. Chivukula introduced Assembly Bill Number A4226 which, among other things, is likely to accelerate New Jersey’s Solar Renewable Portfolio Standard (the “RPS”) beginning in energy year 2014. A4226 provides that the RPS shall automatically increase by 20% for the remainder of the current schedule in the event the number of Solar Renewable Energy Credits (“SREC”) generated meets or exceeds the requirement for energy year 2013 and the average SREC price for all SRECs purchased by entities with RPS obligations has decreased in energy year 2013. If triggered, the effect of the 20% acceleration will be as follows:

 

Energy Year
Current Requirement
New Requirement
2012
442 Gwhrs
442 Gwhrs
2013
596 Gwhrs
596 Gwhrs
2014
772 Gwhrs
926.4 Gwhrs
2015
965 Gwhrs
1,158 Gwhrs
2016
1,150 Gwhrs
1,380 Gwhrs
2017
1,357 Gwhrs
1,628.4 Gwhrs
2018
1,591 Gwhrs
1,909.2 Gwhrs
2019
1,858 Gwhrs
2,229.6 Gwhrs
2020
2,164 Gwhrs
2,596.8 Gwhrs
2021
2,518 Gwhrs
3,021.6 Gwhrs
2022
2,928 Gwhrs
3,513.6 Gwhrs
2023
3,433 Gwhrs
4,119.6 Gwhrs
2024
3,989 Gwhrs
4,786.8 Gwhrs
2025
4,610 Gwhrs
5,532 Gwhrs
2026
5,316 Gwhrs
6,379.2 Gwhrs

 

In addition to potentially accelerating the RPS, if passed, A4226 will clarify that any solar facility (i) connected to a net metering customer’s side of the meter, regardless of the voltage at which the customer connects to the grid, or (ii) that has a capacity of 5 megawatts or less and is directly connected to the electric grid at 69 kilovolts or less, regardless of how an electric public utility classifies that portion of its electric grid, shall be eligible to generate SRECs. Any facility with a capacity that is greater than 5 megawatts that is not net metered or an on-site generation facility shall not be eligible to generate SRECs without the consent of the Board of Public Utilities (the “BPU”). In determining if a non-net metered facility with a capacity greater than 5 megawatts is eligible for SRECs, the BPU shall consider, among other factors, (x) the electric rate benefit and impacts of such facility to customers, (y) its impact on the development of the solar power and SREC market and (z) in consultation with the New Jersey Department of Environmental Protection, the land use impact of the facility.
 

¦ ¦ ¦

For more information, please contact:
Stephen A. Kisker Of Counsel | (973) 530-2074 | skisker@wolffsamson.com
Robert H. Crespi Member of the Firm | (973) 530-2060 | rcrespi@wolffsamson.com