The state of New Jersey in the US can look forward to an additional 3.75 GW of new solar PV capacity to be installed by the year 2026, after the New Jersey Board of Public Utilities (NJBPU) approved a new solar incentive program called Successor Solar Incentive Program (SuSI).
It would basically double the state's current installed solar power capacity that stands at 3.655 GW, as New Jersey targets to reach 100% clean energy by 2050.
The SuSI Program will replace the Solar Renewable Energy Certificate (SREC) program with new incentives. Once the program is fully implemented, solar energy is expected to generate close to 10% of the state's total electricity needs, according to NJBPU.
Solar incentives will be offered in the form of 2 sub-programs, namely a fixed incentive payment for net metered solar projects of 5 MW or less under the Administratively Determined Incentive (ADI). It will be applicable for all residential customers and most commercial and industrial (C&I) buildings, as well as for community solar installations. Incentives for 15-year duration will vary for various system sizes.
Under its Competitive Solar Incentive (CSI), the state would select eligible projects with over 5 MW capacity through a competitive solicitation process. The 1st competitive process is expected to be launched in early-to-mid 2022.
Selected projects will receive 1 New Jersey Solar Renewable Energy Certificate-II (NJ SREC-II) for every MWh of solar electricity produced. There will be an additional $20 per MWh adder for public entities, defined as school districts, municipalities, and public colleges and universities. There will be a temporary incentive for projects built on contaminated lands.
"This tremendous action has taken many perspectives into consideration and ensures the solar industry will remain a vibrant part of our clean energy innovation economy while prioritizing long-term affordability for ratepayers," said NJBPU President Joseph L. Flordaliso.
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