One of the nation’s most traditionally wholesome and energetic solar markets, New Jersey has perennially been a top-10 state when it comes to put in capability and tasks in development. The state’s new incentive program, handed in July 2021, is about to convey practically 3.8 GW of recent solar capability to the state by 2026, however issues over interconnection delays have some advocates questioning how a lot of that solar will really get constructed.
Solar in New Jersey
New Jersey at present ranks eighth within the nation in complete put in solar capability with just below 4 GW of put in capability, and solar accounts for six.66% of the state’s electrical technology.
Unlike different states, the place capability figures will be pushed by one particular kind of solar set up, New Jersey has a wholesome mixture of residential, business and industrial (C&I), utility-scale. The state additionally has an rising group solar market, which shall be explored in additional element beneath.
Over the following 5 years, the state is anticipated to convey on-line a further 2 GW, good for fifteenth within the nation over that interval.
Incentives and applications
In July 2021, the New Jersey Board of Public Utilities (BPU) voted unanimously to implement a brand new solar incentive program that it stated will allow as much as 3.75 GW of recent solar technology by 2026.
The Successor Solar Incentive Program (SuSI) was a part of an almost three-year course of mandated by the Clean Energy Act of 2018 to exchange the state’s Solar Renewable Energy Certificate (SREC) program with new incentives that encourage solar growth whereas minimizing ratepayer value.
The SuSI Program accommodates two sub-programs:
The Administratively Determined Incentive: A hard and fast incentive fee for internet metered solar tasks of 5 MW or much less, together with all residential clients and most business and industrial buildings, and all group solar installations. The incentive worth will fluctuate based mostly on venture kind and measurement, and shall be assured for 15 years.
The Competitive Solar Incentive: A aggressive solicitation designed to incentivize the bottom monetary contribution from ratepayers for grid provide tasks and internet metered business and industrial tasks bigger than 5 MW.
SuSI will present one New Jersey Solar Renewable Energy Certificate-II (NJ SREC–II) for each megawatt-hour of solar electrical energy produced by a qualifying facility, with a further $20/MWh for public entities resembling college districts, municipalities, and public faculties and universities, in addition to a short lived incentive for tasks constructed on contaminated lands.
Incentive ranges for the ADI Program vary from $70 to $120/SREC-II. Regulators stated this would supply ongoing assist for solar growth whereas additionally providing “significant savings” over the prior SREC worth of roughly $220.
In addition to the state’s internet metering program, there are extra incentives and tax exemptions in place to spur solar adoption.
The state gives a full exemption from the state’s gross sales tax for all solar energy gear, so long as stated gear has beforehand been authorized by BPU and serves one of many following features: offering heating, cooling, electrical, or mechanical power by changing solar energy to another usable energy supply. This definition additionally consists of energy storage gadgets.
In addition to the gross sales tax exemption, in 2008, the state handed laws exempting renewable energy techniques used to satisfy on-site electrical energy, heating, cooling, or common energy wants from native property taxes. This exemption extends to solar, wind, gasoline cell, and sustainable biomass, techniques, in addition to different, extra area of interest technology techniques.
In Oct. 2021, state regulators introduced that New Jersey would transition its the two-year-old pilot group solar program to everlasting standing. The determination to maneuver to a everlasting program now reasonably than await a 3rd 12 months of the pilot to begin was pushed by the pilot’s success up to now.
In two years of the pilot program, a complete of 242 MW have been awarded to builders by BPU. The pilot required that at the least 40% of all authorized tasks reserve at the least 51% of their capability for low- and middle-income households, and the entire authorized tasks met that aim.
Scott Elias, senior supervisor of state affairs, mid-Atlantic for SEIA, stated that the commerce group is working with the state to develop a program that provides at the least 150 MW of solar energy capability annually.
“We are pleased that every one of the 105 approved community solar projects in New Jersey will provide low-to-moderate-income communities with clean, affordable energy,” Elias stated in a press release. He stated that regulatory modifications to the group solar program, together with enhancements to the low and moderate-income subscriber verification guidelines, “are another positive step in improving access to the benefits of clean electricity for lower income communities and communities of color.”
EV and fleet electrification incentives
New Jersey has additionally taken a management function in creating incentives aimed toward growing the adoption of electrical autos (EV) amongst each common customers and fleet operators.
Chief among the many client incentives, people who promote, lease, or lease a brand new or used zero-emission automobile are exempt from gross sales and use taxes on that automobile. The state can be home to the Charge Up New Jersey Program, which supplies incentives to residents who buy or lease new battery electrical or plug-in hybrid autos which have an MSRP of lower than $55,000.
New Jersey residents are additionally eligible for the federal Plug-In Electric Drive Vehicle Tax Credit, which supplies a base credit score of $2,500, for the acquisition of an electrical automobile, and a further $417 for every kWh of EV battery capability in extra of 4 kWh.
On the fleet facet, New Jersey has its It Pay$ to Plug In program, which supplies grants to offset the prices of buying and putting in electrical automobile charging stations for companies, governments, academic establishments, multi-unit housing properties, and non-profit organizations. The program covers as much as 100% of prices for presidency public charging stations, 80% of prices for privately-owned public charging stations, and as much as 60% of prices for office charging stations and multi-unit dwelling charging stations.
The most incentive for a level-1 EV charging station is as much as $750, with the inducement rising to as much as $4,000 for level-2 charging, and as much as $200,000 per location for set up of at the least two Direct Current Fast Charging ports.
In addition to the incentives for charging infrastructure, the New Jersey Zero Emission Incentive Program is a $15 million pilot voucher program that gives incentives for companies and different comparable entities buying new, medium-duty zero-emission autos that may function in higher Camden Newark areas.
For autos from 8,501 to 10,000 lbs, the voucher is $25,000, which raises to $55,000 for autos 10,001 to 14,000 lbs; $75,000 for autos 14,001 to 16,000 lbs; $85,000 for autos 16,001 to 19,500 lbs; and $100,000 for autos 19,501 to 26,000 lbs. Woman, minority, and veteran owned enterprise are eligible for $4,000 bonus per automobile, whereas small companies are eligible for a 25% improve in base voucher quantity per automobile and $2,000 per automobile scrapped and changed.
In addition to those current incentives, in February 2021, Gov. Phil Murphy introduced $100 million for the next clear transportation tasks:
- $9 million in grants for native authorities electrification tasks that may assist enhance air high quality in environmental justice communities by the deployment of electrical rubbish and supply vans;
- $13 million in grants for low- and moderate-income communities to scale back emissions that have an effect on youngsters’s air high quality by the deployment of electrical college buses and shuttle buses;
- $5 million in grants for equitable mobility tasks that may convey EV experience hailing and charging stations to 4 New Jersey cities and cities;
- $5 million in grants for deployment of quick charging infrastructure at 27 places statewide;
- $36 million to scale back diesel and black carbon emissions in environmental justice communities by electrifying port, cargo dealing with, and different medium- and heavy-duty gear in port and industrial areas;
- $15 million towards NJ TRANSIT bus electrification; and
- $15 million towards flex funding to additional assist the aforementioned initiatives.
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