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Solar Transition Frequently Asked Questions (FAQs)

The following are frequently asked questions that were submitted through the email solar.transitions@bpu.nj.gov. Staff is aiming to provide clarity to questions that are asked and help inform all interested stakeholders. New questions will be added and these responses will be updated on a rolling basis to inform the solar community. We suggest you check this page on a regular basis or join the Renewable Energy listserv to be notified of any updates.

Frequently asked questions are grouped by the following areas; you can jump to any section by clicking on one of the topics below.
The Clean Energy Act of 2018 and the Solar Transition
Legacy SREC Program
Transition Incentive Program
TREC Values and Factors
Transition Incentive Registration/Process Eligibility
SRP Application
SRP Construction Deadlines and Extension Policies
Remote Net Metering
Grid Supply
Solar Successor Program
Links and Resources

The Clean Energy Act of 2018 and the Solar Transition

1.    What is the Solar Transition?

The Clean Energy Act of 2018 (P.L. 2018, C. 17, or “CEA”) was signed into law by Governor Murphy on May 23, 2018. The CEA instituted changes to the New Jersey solar incentive program.

In particular, the Clean Energy Act directs the New Jersey Board of Public Utilities (“NJBPU” or “Board”) to:

...adopt rules and regulations to close the [Solar Renewable Energy Certificate] SREC program to new applications upon the attainment of 5.1 percent of the kilowatt-hours sold in the State by each electric power supplier and each basic generation provider from solar electric power generators connected to the distribution system. The board shall continue to consider any application filed before the date of enactment of P.L.2018, c.17. The board shall provide for an orderly and transparent mechanism that will result in the closing of the existing SREC program on a date certain but no later than June 1, 2021.

The Clean Energy Act further directs NJBPU to:

...complete a study that evaluates how to modify or replace the SREC program to encourage the continued efficient and orderly development of solar renewable energy generating sources throughout the State.

Therefore, NJBPU is conducting a Solar Transition, which includes the steps necessary for the closure of the Solar Renewable Energy Certificate (SREC) Program upon NJBPU’s determination that the 5.1% Milestone has been attained, and the transition to a new, still to-be-determined incentive program (currently referred to as the “Successor Program”).

2.    How is NJBPU implementing the Solar Transition?

NJBPU is implementing the Solar Transition as a three-step process:
1.    Closure of the SREC Program (also referred to as the “Legacy SREC Program”) to new registrations on April 30, 2020 (which is the date on which the Board has determined the 5.1% Milestone will occur);
2.    Implementation of the NJ Solar Transition Incentive Program as the interim program while the Solar Successor Program is being developed; and
3.    Development of a Solar Successor Program.

3.    How do I know which incentive program my project will be eligible for?

Currently, solar projects in New Jersey can be eligible for either the SREC Program or the Transition Incentive Program.

The incentive program for which your project will be eligible depends on:
1.    the date on which you submitted an SREC Registration Program registration (SRP) or submitted an application for conditional approval;
2.    the date on which your project received permission to operate (PTO) from the Electric Distribution Company (EDC); and
3.    the date of attainment of the 5.1% Milestone and the date at which the Board begins the Successor Program.

See Question #5 and Question #10 for further information on understanding which incentive program your project may be eligible for.

Legacy SREC Program

4.    What is happening to the SREC Program?

NJBPU has adopted rules and regulations to close the SREC Program to new registrations upon the determination that the 5.1% Milestone has been attained. The rule adoption is available on this link. The full rules can be found here.

On April 6, 2020, the Board determined that the 5.1% Milestone will be attained on April 30, 2020. The SRP will be closed to new registrations on April 30, 2020 at 11:59:59pm EST. The SRP portal will remain open for 90 days to allow projects that reached PTO on or before April 30, 2020 to upload their post-construction certification package in order to be eligible to receive SRECs (see Question #15 for more information).

5.    What will happen to my SRP registration if my project hasn’t reached commercial operation / received a permission to operate (PTO) by April 30, 2020 (i.e. by the time the 5.1% Milestone is attained)?

There are two basic types of solar electric generation facilities eligible for SRECs in New Jersey:
1.    Net metered systems, which receive retail credit from an EDC for the electricity produced. These projects must file an SREC registration through the online portal located on the NJCEP website.
2.    Grid supply projects, which sell their power in the PJM wholesale. These projects must have applied directly to NJBPU for SREC eligibility as either:
       - Subsection (t) (projects that are planned to be located on landfills, brownfields, or areas of historic fill), OR
       - Subsection (r) of the Solar Act of 2012 (projects that are planned to be located anywhere else).

If you filed a Subsection (t) application for SREC eligibility for your project ON OR BEFORE October 29, 2018, but do not reach commercial operation prior to April 30, 2020 (the 5.1% Milestone), your project will be eligible to receive SRECs as long as it achieves commercial operation prior to the expiration of your SRP registration.

If you filed an SRP registration for a net metered system or a Subsection (t) or (r) application for SREC eligibility for your project AFTER October 29, 2018, but do not reach commercial operation prior to April 30, 2020, your project will be eligible for the Transition Incentive Program as long as your SRP registration is valid and complete.

Please see Question #10 for a further breakdown of incentive eligibility by project scenario.

6.    What is the date of attainment of the 5.1% Milestone?

By Order dated April 6, 2020, the Board determined that the 5.1% Milestone will occur on April 30, 2020. Therefore, no new SRP registrations will be accepted after 11:59:59pm EST on April 30, 2020.

7.    How was the 5.1% Milestone calculated?

NJBPU delineated its method for calculating the percentage of retail sales provided by eligible solar electricity and forecasting the 5.1% Milestone in an Order dated February 19, 2020. The Order is available on this link. Monthly reports on the state’s progress toward attainment of the 5.1% Milestone are posted to the Solar Transition Proceeding page.

8.    Is there a floor price for SRECs?

No, there is no floor price for SRECs.

9.    If a Subsection (t) project was awarded an SREC strip through the second EDC SREC Program, are the applicable SRECs already included in the 5.1% Milestone calculation?

The law requires NJBPU to close the SRP when actual electricity produced from eligible solar electric generation facilities provides 5.1% of the retail electricity sold by Third Party Suppliers and Basic Generation Service Providers. Renewable Energy Certificates (RECs) are not created in the Generation Attribute Tracking System (GATS) used for New Jersey Renewable Portfolio Standard (RPS) compliance until metered solar electricity is reported to GATS.

10.    At what point in the SRP registration process is the customer considered to have been allotted a spot within the current SREC Program? Are customers “grandfathered in” after the registration is initially submitted or after the registration has been reviewed and received a Notice of Conditional Registration?

If you filed an application for SREC eligibility for your project via Subsection (t), Subsection (r), or filed a complete SRP registration for your net metered project on or before October 29, 2018, your project will be eligible for 15 years of SRECs, so long as your project reaches commercial operation prior to the expiration of your SRP registration.

If you filed an SRP registration for your net metered project or applied for Subsection (t) or (r) eligibility after October 29, 2018, and your project commences commercial operation prior to the date of attainment of the 5.1% Milestone (i.e., prior to April 30, 2020), your project will be eligible for 10 years of SRECs, contingent upon your submitting a complete SRP post-construction certification package (also known as the Final As-Built package) within 90 days of receiving PTO (see Question #15 for more information on this 90-day requirement).

If you filed an SRP registration for your project after October 29, 2018, but before April 30, 2020 (or before the date the Board starts registrations for the Successor Program, whichever comes last), and your project retains an active registration but has not commenced commercial operation prior to April 30, 2020, your project will be eligible for the Transition Incentive Program.

If you did not file an SRP registration for your project before April 30, 2020 (or before the date that NJBPU starts registrations for the Successor Program, whichever comes last), or if your SRP registration was materially incomplete or expired, your project may be eligible to apply for the still to-be-determined Successor Program.

Please also see response to Question #5.

11.    Are there plans for the market to be reduced for projects that have not reached PTO by April 1, 2020?

There are no milestones or deadlines associated with April 1, 2020 within New Jersey’s solar program administered by NJBPU. The next major milestone is the date of attainment of the 5.1% Milestone, i.e., April 30, 2020 as discussed in the Order issued April 6, 2020. NJBPU determined the April 30 milestone date based on the amount of solar electricity generated and retail electricity sold over the previous twelve months. All properly registered projects that receive PTO from their EDC before this date will be eligible to join the SREC market, and most projects that receive their PTO after this date should be eligible for the Transition Incentive Program.

12.    If a project has received a conditional registration for SRECs, is this project grandfathered into the SREC Program even if the Transition Incentive Program has been implemented?

See answer to Question #5 and Question #10 above.

13.    If a project is approved and operational before the closure of the SRP, will I receive SRECs for the ten years or be transferred over to the Transition Incentive Program?

See answers to previous Question #5 and Question #10 above. Your project will be eligible for 10 years of SRECs if:
1.    you filed an SRP registration for your project after October 29, 2018;
2.    your project commences commercial operation prior to the date of attainment of the 5.1% Milestone (i.e., prior to April 30, 2020); and
3.    you file a complete SRP post-construction certification package within 90 days of receipt of PTO.  

If you fail to meet any of these requirements, then your project will be transferred to the Transition Incentive Program (see Question #15 for more information on this 90-day requirement).

14.    How will the SRP be closed?

The SRP will be closed upon attainment of the 5.1% Milestone, which the Board has determined to be April 30, 2020. Any project that reached PTO prior to the 5.1% Milestone must submit a post-construction certification package within 90 days of receipt of PTO in order to be eligible for SRECs.

15.    What is the 90-day requirement to submit a Final As-Built package?

By Order dated March 27, 2020, the Board ordered that projects must submit a post-construction certification package (also referred to as a “Final As-Built package”) within 90 days of receiving PTO, or 90 days of the date of attainment of the 5.1% Milestone, whichever is earlier.


16.    My SRP extension is about to expire; what do I do?

If your initial SRP registration is set to expire before April 30, 2020, and you are seeking a first extension, you must file a request for a first extension via the SRP Administrator. Note that these projects are still required to commence commercial operations prior to the 5.1% Milestone and to submit their Final As-Built package within 90 days of the date of PTO in order to be eligible for SRECs.

If you already received a first extension that is set to expire on or before April 30, 2020, and you are seeking a second extension, you must file a request for a second extension to the Board via petition submitted to the Board Secretary’s Office. By Order dated March 27, 2020, the Board directed NJBPU Staff to grant a first or second extension to projects with a registration set to expire prior to April 30, 2020, the date of attainment of the 5.1% Milestone. Note that these projects are still required to commence commercial operations prior to April 30, 2020, and submit their Final As-Built package within 90 days of the date of issuance of the PTO, in order to be eligible for SRECs.

If you already received a second extension, and your registration is scheduled to expire on or before April 30, 2020, you must file a request for a new registration, along with an updated milestone reporting form.

NOTE: If you submitted an initial SRP registration or a Subsection (t) application prior to October 29, 2018, you must file all extension requests directly to the Board. Instructions for submitting a petition are available on this link.  Pursuant to the March 27, 2020 Order, you must document substantial progress toward completion and the imminent commencement of commercial operations in order to be considered for an extension of SREC eligibility.

Transition Incentive Program

17.    What is the Transition Incentive Program?

NJBPU established the Transition Incentive Program (also referred to as the “TREC Program”) to provide a bridge between the Legacy SREC Registration Program and the Successor Program (see the Board’s December 6, 2019 Order). Specifically, the Transition Incentive Program will be open to projects that submitted complete SRP registrations after October 29, 2018, have yet to commence commercial operations but otherwise remain in compliance with the Legacy SRP requirements at the time the 5.1% Milestone is attained on April 30, 2020 (i.e., projects in the SRP pipeline on April 30, 2020) or projects that register for TRECs after April 30, 2020 (if a Successor Program is not ready to take applications at that time).

By Order dated January 8, 2020, the Board determined that, if the Successor Program is not ready to accept new project registrations by the time the 5.1% Milestone is attained, the Board will allow projects to apply to participate in the Transition Incentive Program.

TREC Value and Factors

18.    How is the value of a TREC determined?

NJBPU calculates the value of a Transition Renewable Energy Certificate (TREC) by multiplying the base compensation rate ($152/MWh) by the project’s assigned factor.

The TREC factors are defined based on the chart below:

Project Type Factor
Subsection (t): landfill, brownfield, areas of historic fill 1.0
Grid supply (Subsection (r)) rooftop 1.0
Net metered non-residential rooftop and carport 1.0
Community solar 0.85
Grid supply (Subsection (r)) ground mount 0.6
Net metered residential ground mount 0.6
Net metered residential rooftop and carport 0.6
Net metered non-residential ground mount 0.6


19.    Will the TREC value for a community solar project be locked in as $129.20/MWh for a 15-year term?

Yes. The value of a TREC is calculated by multiplying the base compensation ($152/MWh) by the project’s assigned factor. In the case of a community solar project, this is a factor of 0.85:

$152 x 0.85 = $129.20/MWh

See Question #18 for further information.

20.    Is the TREC value for a residential project $91.20/MWh?

Yes. The value of a TREC is calculated by multiplying the base compensation ($152/MWh) by the project’s assigned factor. In the case of a net metered residential project, this is a factor of 0.6:

$152/MWh x 0.6 = $91.20/MWh

See Question #18 for further information.

21.    Under the TREC Program, how will residential net metering be defined versus non-residential net-metering? Will it be based on the building’s use category/type l? Or will it be based on the utility tariff rate, whether that is commercial or residential? For example, if a customer installs a solar system to offset load billed under a General Light and Power (GLP) commercial tariff rate, for TREC factorization purposes, would that application be considered a non-residential (commercial) TREC application?

Such a solar system would be considered a non-residential or commercial system for purposes of determining the TREC classification. The difference between net metered commercial and net metered residential for purposes of determining the TREC factor depends on the EDC tariff assigned to the electric utility account that is receiving net metering credits.

22.    For a commercial project that contains both ground and rooftop arrays (both of which are subject to 0.6 factorization unless submitted as separate SRP applications), is a separate revenue grade meter required for each application, or can the same meter be used for roof and ground applications? In other words, is it meter = 1 factor?

There will only be one factor assigned per ANSI c-12, revenue grade TREC production meter.  Staff anticipates that the TREC registration process will include a step for project developers or owners to specify the project type, which determines the TREC factor. In this example, since only one ANSI c-12 revenue grade production meter will be installed for purposes of TREC creation, the developer or owner would specify the lower of the two factors (0.6) to be applied to all electricity production.


23.    Who is the ultimate purchaser of generated TRECs?

The TRECs will be purchased monthly by a TREC Administrator who will allocate the TRECs to the Load Serving Entities (BGS Providers and Third Party Suppliers) annually based on their market share of retail electricity sold during the relevant Energy Year.

24.    Who is the TREC Administrator?

The TREC Administrator has not been selected at this time. The EDCs issued a Request for Proposals on April 10, 2020, and will be jointly selecting the TREC Administrator based on the bids received.

25.    I want to apply to become the TREC Administrator. How will the TREC Administrator be selected? Will an RFP or similar solicitations be published? Is there a list of potential providers? Is it done by invitation?

The EDCs will procure the services of the TREC Administrator and have issued an RFP.

26.    Will there be a contract or agreement between the generator and the TREC Administrator to outline the TREC purchase? If not, what contract or agreement does the generator enter into to cover the transfer of TRECs to the Administrator? Also, who is the other entity involved in that agreement?

There is no contractual agreement anticipated to cover the transfer of TRECs to the TREC Administrator, per se. The owner may be required to complete a standing order within the PJM-EIS GATS system pledging all metered generation to the creation of TRECs for solely for NJ RPS compliance purposes. The TREC Administrator will be contractually bound to comply with NJBPU Orders and rules governing the program and to verify and procure all TRECs from generators certified as eligible to participate in the TREC Program. Currently, the Board requires the TREC Administrator to purchase TRECs monthly.

27.    How long are projects eligible to receive TRECs?

Eligible projects may generate TRECs for 15 years following the commencement of commercial operations (also referred to as the “Transition Incentive Qualification Life”). After 15 years, projects may be eligible for a NJ Class I REC.

28.    How will the owner of the solar system receive payment for the TRECs: cash or bill credit?

Owners of TRECs will be paid by the TREC Administrator. Further details regarding the TREC payment method will be provided after selection of the TREC Administrator.

29.    If a ground mount grid supply project is converted into community solar, would it earn the 0.85 TREC factor?

An existing system cannot apply to become a community solar project. Only a project that applies and is approved by the Board as a community solar project is eligible for a 0.85 TREC factor.

30.    Will grid supply ground mount projects receive a 0.6 TREC factor if they are located on a brownfield or landfill?

If the ground mount grid supply project was approved by the Board through the Subsection (r) process, it would be eligible for a 0.6 TREC factor. If the ground-mounted grid supply project was approved by the Board through the Subsection (t) process, it would be eligible for a 1.0 TREC factor.

31.    Regarding the generation and tracking of TRECs, will the generator be required to create an account in GATS and use this account to track and transfer ownership of such TRECs to the Administrator? Or will systems be registered directly with the TREC Administrator in GATS so there is no TREC transfer process from generator to Administrator?

TRECs will be created within generator accounts established in the PJM-EIS GATS system. Owners of TRECs from eligible generators will be required to create an account in GATS, and use this account to transfer TRECs to the TREC Administrator. More information about how to automate this transfer will be provided at a later date.

Transition Incentive Registration Process/Eligibility

32.    Will the TREC project registration change from the current SREC registration process?

Projects seeking eligibility to receive a New Jersey solar incentive at this time (whether an SREC or a TREC) must submit an SRP registration prior to beginning construction. More information about the SRP is available on this link.

Projects registered for SRECs that have yet to commence commercial operations will be transferred to a new TREC registration pipeline (see Question #35 for further information). A new TREC registration process is in development to address projects seeking to register after the 5.1% Milestone date of April 30, 2020, and is expected to open on May 1, 2020.

33.    When will the Transition Incentive Program open? How do I register for the Transition Incentive Program? If we don’t make it into the SREC market, will we get automatically shifted to TRECs?

Projects seeking eligibility to receive a New Jersey solar incentive (whether an SREC or a TREC) must register through the SRP prior to beginning construction. SRP-registered projects that have yet to receive a PTO on or before April 30, 2020 will be automatically transferred to a Transition Incentive registration pipeline. Developers and owners of these projects will be instructed if they are required to submit any additional information to confirm the TREC factor. See the response to Question #35 for more details on the transfer of project from the SRP to the Transition Incentive Program.

A new Transition Incentive registration portal is currently under development, and is expected to open on May 1, 2020. This portal will be available to projects that did not register in the SRP prior to April 30, 2020, and will remain open until the Board establishes a registration program for the Successor Program, so as to ensure that there is no gap in incentive program availability. See also the response to Question #32.

34.    I have an existing SRP registration for a project. Is there any harm in letting this reservation expire and resubmitting a new registration?

Staff cannot provide business advice on individual projects. Generally speaking, a project can withdraw its SRP registration and resubmit a new one at any time, as long as they submit an SRP registration prior to the commencement of construction of said project. See answers to Question #5 and Question #10 above on eligibility for SRECs.

35.    What will happen if my project doesn’t reach PTO by the 5.1% Milestone (i.e., by April 30, 2020)? Will I have to reapply to the Transition Incentive Program, or will my SRP automatically carry over?

Any SRP registrations that are in good standing (i.e., not expired) and have not received PTO prior to the 5.1% Milestone may either 1) request to be transferred over to the Transition Incentive Program, or 2) will be automatically transferred over to the Transition Incentive Program on the 91st day after April 30, 2020. Registrants will be required to access the Transition Incentive portal to validate the transfer and provide data regarding the TREC factor. More information on the transfer process will follow.

Exception scenario: Subsection (t) applications that submitted an application for SREC eligibility on or before October 29, 2018 and have not received a PTO prior to the 5.1% Milestone will be eligible for SRECs if they receive a PTO before the expiration of their registration and if they submit Final As-Built paperwork within 90 days of receipt of that PTO.

SRP Application

36.    Assuming all checklist items are completed, what criteria will determine if an SRP application is approved or denied?

Applications for SRP registration are not approved or denied. Instead, they are deemed either “complete” or “incomplete/ineligible.”

SRP registrations submitted via the online portal are processed by the SRP Processing Team. Applications for registration are considered complete if the project meets the SREC eligibility criteria established by statute and by rule located at N.J.A.C. 14:8-2.4. Complete registrations are issued an NJCEP Registration Number.

Applications with deficiencies are returned as incomplete or ineligible.

No registrations for the Legacy SRP will be accepted after April 30, 2020, when the Board has determined that the 5.1% Milestone will be attained and the SRP closed.

For more information about the SREC Registration Program, click here.

37.    Is the approval tier-based? E.g., SREC Approval > TREC Approval > Denied?

See answer to Question #36 regarding approvals versus denials.

Further to this, applications for SRP registration are also not tier-based. If a project application is confirmed to be “complete” and eligible for SRECs, at that time the applicant is notified of the project’s conditional registration. Eligibility to create SRECs is conditioned upon meeting certain construction deadlines, including commencement of commercial operations and submission of a post-construction certification package within 90 days of receiving a PTO letter. If the project is not eligible for the Legacy SREC Program or if the registration is materially incomplete, an SRP registration will not be deemed complete.

Eligibility for the Transition Incentive Program is determined by the submittal of a complete registration package relative to the date of attainment of the 5.1% Milestone, and by receipt of PTO after April 30, 2020.

38.    For the checklist items that have multiple acceptable items, such as EDC Documentation, and Executed Contract, are these criteria evaluated on a pass-fail basis, or are more final documents worth more in the evaluation (i.e., LOI<Executed Contract)?

The SRP checklist is designed to enable registrants to fulfill the requirements for SREC registration contained in the Renewable Portfolio Standard rules at N.J.A.C. 14:8-2.4. A developer/owner must satisfy all of the rule requirements for a given project before it will be conditionally registered. Any document identified by the rules as satisfying a requirement will be accepted. The rules can be found on this link. Please review the rules if you have a question about the requirements for conditional registration for SREC eligibility.

39.    What are the SRP registration requirements and process for grid supply projects in the TREC Program?

Grid supply projects must be approved by the Board prior to registering with the SREC Registration Program via the Subsection (t) process.

Please note that NJBPU is no longer accepting applications for Subsection (r) projects. Instead, the Board has advised developers to pursue eligibility for grid supply rooftop projects in the development of the Successor Program.

40.    Will changes to capacity, production, or price that occur between the submission of the registration package and final due diligence have an impact on the validity of an SRP application? What is the process to make these changes?

The rules for the SRP registration process at N.J.A.C. 14:8-2.4 (o) discuss how changes to proposed capacity are handled. However, the SRP rules do not address changes to “production or price”.  

41.    Regarding the Letter of Intent (LOI), what equipment needs to be listed in the “summary of equipment”? If there are changes to the summary of equipment listed in the LOI, what is the process to make those changes and are there any implications of making changes to the application?

The rules for the SRP registration process at N.J.A.C. 14:8-2.4 (j) 1-6 discuss the requirements for the initial SREC registration package.

SRP Construction Deadlines and Extension Policies

42.    Are there additional registration extensions (beyond the usual six-month extensions) that these projects could obtain due to actions beyond our control?

The provisions in the SRP rules for registration extensions do not address alternatives to the existing terms. Further extensions must be sought by petitioning the Board. See Question #16 for further information.

43.    Would previous energization deadlines apply after the Transition Incentive Program starts?

The amended SRP rules for SREC eligibility require commencing commercial operations by the 5.1% Milestone attainment or the expiration of registration term or extension term (whichever occurs first), and submission of the post-construction certification package within 90 days of the date of the PTO.

44.    We are submitting an SREC application as an extension to an existing project. If we apply as an ‘add on’ and do not reach commercial operation prior to hitting the 5.1% milestone, would this project still be part of the original program, would it switch to TREC, or would we need to reapply?

Registrations for add-on capacity to existing projects will be treated as other applications for incentive eligibility. The add-on systems require additional, dedicated ANSI c-12 production metering in order to receive an incentive. See Question #5 and Question #10 for further information.

45.    How will TRECs work on retrofit projects in conjunction with SRECs (e.g., PV plus storage)?

If defining “retrofit” as capacity added to an existing project, then the application for an incentive will be treated as other applications for incentive eligibility. The add-on systems require additional, dedicated ANSI c-12 production metering in order to receive an incentive.

Power discharged from a battery that is capable of being charged by the electric distribution grid will not be allowed to register on a SREC or TREC meter or on an EDC’s net meter.

Before you build, please work with the EDC and the SRP inspection team to determine whether your proposed solar and storage configuration can qualify for SRECs, TRECs, and/or net metering.

46.    How will add-on solar capacity be treated under the TREC Program? Which program will the add-on qualify for under the following scenarios, assuming each will receive a new solar production meter:

  • Original project in Legacy Program AND new project registers pre-5.1% Milestone Date?
  • Original project in Legacy Program AND new project registers post-5.1% Milestone Date?
  • Original project in Transition Program AND new project registers pre-5.1% Milestone Date?
  • Original project in Transition Program AND new project registers post-5.1% Milestone Date?

Answer: See answer to Question #44 and Question #45 above.

    
Remote Net Metering

47.    Would NJBPU consider reviewing a remote net metering application for a denied community solar project on a municipal owned landfill? Is there a current program other than community solar that a project can be submitted for SREC qualification?

Projects may apply for the remote net metering program if they fulfill the program requirements. In particular, the host site must be a public entity and the host site’s utility account for electricity consumption and system size must be based on the average consumption of multiple metered accounts. Information about the remote net metering program is available on this link.

Properly closed sanitary landfills can receive conditional certification for SREC eligibility by submitting a Subsection (t) application to the Board through April 30, 2020.

48.    Regarding the establishment of remote net metering for public entities to act as host customers for remote net metering capacity, has this program been put into effect, and is it currently open to applications?

The remote net metering program is open for applications. Please visit this page for more information.

Grid Supply

49.    If a developer wants to build a New Jersey-based grid-connected project, do they need to get approval from the NJBPU to receive SRECs?

All projects seeking SREC eligibility must be “grid-connected,” either via interconnection behind a customer’s meter that is net metered with an EDC, or as a directly connected grid supply project that participates in the PJM wholesale electricity market. Net metered projects do not require Board approval for SRECs, but rather must register in the SRP and demonstrate the ability to net meter via approval to interconnect granted by their EDC. Grid supply projects seeking to be eligible for SRECs or TRECs must receive conditional approval from the Board, either through the Subsection (t) or the Subsection (r) processes. This conditional approval is required prior to registering in the SRP. The Subsection (t) process is limited to projects located on landfills, brownfields, or areas of historic fill.

Please note that NJBPU is no longer accepting applications for Subsection (r) projects. Instead, the Board has advised developers to pursue eligibility for grid supply rooftop projects in the development of the Successor Program.

50.    What incentive path is open to grid supply projects that do not qualify under Subsection (t)? Is Subsection (r) open for applications? Is Subsection (r) going to be opened?

Pursuant to the Board’s Order dated March 27, 2020, Subsection (r) has been closed to new applications. Expressions of interest submitted pursuant to Subsection (r) for Energy Year 2021 will not be considered for the Transition Incentive Program. Developers interested in pursuing grid supply development in New Jersey are encouraged to engage in the Successor Program stakeholder process.

51.    The December 6, 2019 NJBPU press release about the TREC Program lists a factorization category for “Grid Supply Rooftop = 1.0”, however it is our understanding that grid supply rooftops are no longer accepted since the closure of Subsection (r). Please reconcile.

Pursuant to the Board’s Order dated March 27, 2020, Subsection (r) has been closed to new applications.

The Board’s December 6, 2019 Order did assign TREC factors for grid supply Subsection (r) projects (1.0 for Subsection (r) rooftop, and 0.6 for Subsection (r) ground-mount), however these factors only apply to Subsection (r) are for projects already granted conditional approval by the Board. The Board has advised developers to pursue eligibility for new grid supply projects in the development of the Successor Program.

52.    If the developer wants to sell the off-take kilowatt-hours to any third party within New Jersey, do they need to be a NJBPU-approved third-party provider? If they sell the kilowatt-hours outside of New Jersey, but still within the PJM states, do they still need to be an approved third-party supplier in New Jersey? Does NJBPU need to approve any Power Purchase Agreement (PPA) that the developer would sign with any off-taker?

The eligibility criteria for SRECs are included in the statutory definition of “connected to the distribution system”. Net metered projects are, by this definition, approved to create SRECs, and the statute and Board’s rules for net metering address how the electricity is valued and sold.  Aside from these statutory requirements, which are copied in the rules governing SREC eligibility, NJBPU has no restrictions in its solar incentive programs on how the electricity is sold from grid supply solar electric generation facilities.  

Solar Successor Program

53.    Will there be additional workshops or stakeholder meetings?

Yes. Please subscribe to the Renewable Energy listserv to receive updates on any future workshops or meetings related to the Solar Transition. You can sign up for the Renewable Energy listserv, and other listservs offered by New Jersey’s Clean Energy Program, on this link.

54.    Is there a set date that a decision will be made on the Solar Successor Program?

No. Please subscribe to the Renewable Energy listserv to receive updates on the development of the Successor Program. You can sign up for the Renewable Energy listserv, and other listservs run by New Jersey’s Clean Energy Program™, on this link.

Links and Resources

55.    Where can I find the Clean Energy Act of 2018?

A copy of the Clean Energy Act of 2018 (A3723/S2314) can be found on the New Jersey State Legislature website, on this link.


56.    How close is the State to reaching the 5.1% Milestone?

The Board has determined that the 5.1% Milestone will be attained on April 30, 2020. NJBPU Staff also published monthly reports on the attainment of the 5.1% Milestone. The monthly reports are available on this link. Information on New Jersey solar projects, including pipeline and installed capacity, can be found within the Solar Activity Reports on this page.


57.    Where can I find more information about the Solar Transition?

More information about the Solar Transition, including Board Orders, notices, Staff straw proposals, and other materials, is available on this link.

58.    Who can I contact for questions about the Solar Transition, the Legacy SREC Program, or the Transition Incentive Program?

Please email any questions to solar.transitions@bpu.nj.gov. Your question will be answered via the Solar Transition FAQ page. Please be patient as we process the response.

59.    Where can I find stakeholder comments?

Stakeholder comments on matters related to the solar transition will be posted to the Policy Updates and Request for Comments page.

60.    How can I sign up for the Renewable Energy listserv?

You can sign up for the Renewable Energy listserv, and other listservs offered by New Jersey’s Clean Energy Program, on this link.

You can also receive information on Board meetings, stakeholder meetings, and more by signing up for NJBPU listserv on this link.

 



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