NJ Solar Energy NARUC/USAID Internship Program August 6-21 Salma Hussien Osman
Outstanding NJ Clean Energy Program New Jersey is the fastest growing markets for solar photovoltaics in the United States and one of the largest in terms of... Much of this success is due to New Jersey s Solar Financing Model, which relies on high renewable energy standards and the use of Solar Renewable Energy Certificates (SRECs).
SREC Registration Program What is the SREC Registration Program? The SREC Registration Program (SRP) is used to register the intent to install solar projects in New Jersey. Owners of solar projects MUST register their projects in the SRP program prior to the start of construction in order to establish the project s eligibility to earn SRECs. Registration of the intent to participate in NJ's solar marketplace provides market participants with information about the pipeline of anticipated new solar capacity and insight into future SREC pricing.
SREC Registration Program After the registration is accepted, construction is complete, and final paperwork has been submitted and is deemed complete, the project is issued a New Jersey Certification Number which enables it to generate New Jersey SRECs. Rebated projects being developed through the Renewable Energy Incentive Program( REIP )do not need to submit SRP materials, but will still be registered with the SREC tracking system upon system and REIP process completion.
What is REIP? Renewable Energy Incentive Program The Renewable Energy Incentive Program (REIP) provides rebates that reduce the upfront cost of installing renewable energy wind and sustainable biomass projects in New Jersey Rebate levels vary depending upon technology, system size, and customer type. If you are considering installing a system, New solar projects can register for SRECs through the SREC Registration Program (SRP). Solar projects that are currently approved in the REIP can submit a Final As-Built package by reviewing the Solar Final As-Built section on the REIP Program Forms page.
SRP Applications SRP Approvals to Date - Registrations received through June 28, 2011 have been approved as of 8/3/2011
How did New Jersey Become a Leader? New Jersey s Clean Energy ProgramTM was established in 2001. That year there were only 6 solar installations in the state. Since that time New Jersey has established a model program and integrated approach to solar development that includes:
How did New Jersey Become a Leader? A strong Renewable Portfolio Standard (RPS) with a solar electric set aside that has helped create sustainable demand and investor confidence in the market Excellent interconnection and net metering standards that have made it easier for systems to connect to the distribution system and be compensated for their contribution An SREC financing model that provides energy certificates and additional long term financing for those who invest in solar
How Do SRECs Work? Each time a system generates 1,000 kwh of electricity, an SREC is earned and placed in the customer's electronic account. SRECs can then be sold on the SREC tracking system, providing revenue for the first 15 years of the system's life.
How Do SRECs Work? Electricity suppliers, the primary purchasers of SRECs, are required to pay a Solar Alternative Compliance Payment (SACP) if they do not meet the requirements of New Jersey s Solar RPS. One way they can meet their RPS is by purchasing SRECs. As SRECs are traded in a competitive market, the price may vary significantly. The actual price of an SREC during a trading period can and will fluctuate depending on supply and demand.
What is the SREC tracking system? The SREC tracking system enables account holders to track solar energy production from their installations. SRECs are issued to account holders based or recorded or estimated production of the solar energy system. Once your solar energy system has been installed and your online SREC tracking system account has been established, SRECs will be deposited monthly. The SREC tracking system also records the sale of SRECs from generators to purchasers.
EDC Solar Financing Incentive (ESFI) To encourage participation in the EDC SREC-Based Financing Program, in 2011 incentives will be available to those SRP projects which enter into a long term contract to sell SRECs to JCP&L, ACE or RECO. PSEG solar loan projects, and any other bi-lateral contracts negotiated between SREC buyers and sellers which are not the result of participation in the EDC SREC auctions, are not eligible for participation in the ESFI.
EDC Solar Financing Incentive (ESFI) An incentive of $.50/Watt will be available to all eligible SRP projects that are awarded a Board approved SREC Purchase and Sale Agreement with their EDC resulting from their participation in an EDC SREC solicitation bid
ESFI Incentive - Eligibility 2011 Project Type Eligible Projects Solar Residential Solar Public and Non- Profit All residential projects less than or equal to 10.0 kw of rated capacity. Eligible residential projects include customer owned and financed systems, residential new construction in Smart Growth areas (for builders and homeowners), and residential systems using a leasing or power purchase agreement. Only the first 7.5 kw of capacity is eligible for an incentive with a maximum payment amount of $3,750. The lifetime residential payment cap of 10.0 kw will apply. All public and non-profit projects that are a) less than or equal to 50.0 kw of rated capacity, and b) not using a power purchase agreement or other tax advantaged financing are eligible for the ESFI.Only the first 30.0 kw of capacity is eligible for an incentive with a maximum payment amount of $15,000. This project type includes public and nonprofit organizations (municipalities, other governments, public colleges and universities, public schools (K-12), and affordable housing.
EDC Solar Financing Incentive (ESFI) Registrants may indicate their intent to participate in ESFI at the time they file their SRP registration by completing the ESFI intent to participate form. However, the SRP registration acceptance letter will be issued without any commitment for the ESFI. Projects that are eligible for this incentive will receive a commitment at a later time through a Board Order as described in the process below.
EDC Solar Financing Incentive (ESFI) Upon approval by the Board of the SREC Purchase and Sale Agreement, the ESFI commitment will be made for a period of 12 months from the date of the EDC contract and the SRP project expiration date will be extended to match the expiration date of the EDC contract Thus the Board Order will be the document which will modify the terms of the original SRP registration acceptance letter to commit the ESFI funds and extend the project expiration date. A new commitment letter will not be sent to the registrant. The incentive payment will be processed after all NJCEP installation requirements have been met including documentation by their EDC of the approval to interconnect and operate the system. The Market Manager will track the ESFI budget commitments and post this information on the NJCEP website so that market participants can gauge the availability of funds.
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