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BPU Establishes 180 MW EDC SREC Solicitation Program

May 25, 2012

On May 23, 2012, the State of New Jersey Board of Public Utilities (“BPU”) issued an order approving the extension of the Electric Distribution Company (“EDC”) Solar Renewable Energy Certificate (“SREC”) financing programs by 180 Megawatts (“MW”) over the next three energy years.

The details of the individual solicitations are yet to be determined, but the general parameters as set forth in the order are as follows:

• The total solicitation will be for 180 MW over the next three energy years (60 MW per year for energy years 2013 – 2016), divided among the EDCs based on retail sales. Individual EDCs may opt out of the program, in which event their allocated share of the 180 MW will be offered to the remaining EDCs;
• The EDCs may establish a loan program, solicitation, or both (collectively the “Program”);
• The Program will be available for net metered projects only, except for grid supply projects on municipal landfills or brownfields in areas that can be supported by the current distribution system; and
• The SRECs generated within the Program will be shelved and sold in a centralized auction in energy year 2016.

Further, the order directs BPU staff to commence the rulemaking process to achieve the following:

• Renewable Portfolio Standard (“RPS”) regulatory amendments aimed at dealing with the SRECs that will be entering the market in energy year 2016 as a result of the Program;
• Reducing the SREC qualification life from 15 years to 10 years for new projects, and establishing a decreasing trend for the qualification life through energy year 2027; and
• The establishment of a revised Solar Alternative Compliance Payment schedule for energy years 2017 through 2026.

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For more information, please contact:

Stephen A. Kisker | Chair, Renewable Energy and Sustainability Group | (973) 530-2074 |
Robert H. Crespi | Member of the Firm | (973) 530-2060 |
John G. Valeri Jr. | Member of the Firm | (973) 530-2030 |
Michelle A. Schaap | Member of the Firm | (973) 530-2026 |