50 Solar Incentive States: New Jersey

One of the healthiest and fastest growing solar markets in the nation, New Jersey has consistently been in the top 10 states by installed capacity and projects under construction. The state’s new incentive program, passed in July 2021, is expected to bring nearly 3.8 GW of new solar capacity to the state by 2026, but concerns about interconnection delays have some proponents wondering. how much of that solar energy will actually be built.

Solar in New Jersey

New Jersey currently ranks 8e in the country in total installed solar capacity with just under 4 GW of installed capacity, and solar energy accounts for 6.66% of the state’s electricity production.

Unlike other states, where capacity numbers may be determined by a specific type of solar installation, New Jersey has a healthy mix of residential, commercial, and industrial (C&I), utility-scale. The state also has an emerging community solar market, which will be explored in more detail below.

Over the next five years, the state is expected to bring an additional 2 GW online, or 15e in the country during this period.

Incentives and programs

In July 2021, the New Jersey Board of Public Utilities (BPU) voted unanimously to implement a new solar incentive program that it says will enable up to 3.75 GW of new solar generation from here 2026.

The Successor Solar Incentive Program (SuSI) was part of a nearly three-year process mandated by the Clean Energy Act of 2018 to replace the state’s Renewable Solar Energy Certificate (SREC) program with new incentives that encourage solar development while minimizing the cost to the taxpayer.

The SuSI program contains two subroutines:

Government-Determined Incentive: A fixed incentive payment for net metered solar projects of 5 MW or less, including all residential customers and most commercial and industrial buildings, as well as all community solar installations. The incentive value will vary depending on the type and size of the project and will be guaranteed for 15 years.

The Competitive Solar Incentive: A competitive solicitation designed to induce ratepayers to provide the lowest financial contribution for grid supply projects and net-metered commercial and industrial projects greater than 5 MW.

SuSI will provide a New Jersey Solar Renewable Energy Certificate-II (NJ SREC-II) for each megawatt-hour of solar electricity produced by a qualifying facility, with an additional $20/MWh for public entities such as school districts, municipalities and the public. colleges and universities, as well as a temporary incentive for projects built on brownfields.

Incentive levels for the ADI program range from $70 to $120/SREC-II. Regulators said it would provide continued support for solar development while offering “significant savings” over the previous SREC value of around $220.

In addition to the state’s net metering program, additional tax incentives and exemptions are in place to drive adoption of solar energy.

The state provides full state sales tax exemption for all solar energy equipment, provided that such equipment has been pre-approved by BPU and performs one of the following functions: providing heating, air conditioning, electricity or mechanical power by converting solar energy to another usable energy source. This definition also includes energy storage devices.

In addition to the sales tax exemption, in 2008 the state passed legislation exempting renewable energy systems used to meet on-site electrical, heating, cooling, or general energy needs. local property taxes. This exemption extends to solar, wind, fuel cell and sustainable biomass systems, as well as other more specialized generation systems.

Community solar

In October 2021, state regulators announced that New Jersey would transition its pilot two-year community solar program to permanent status. The decision to move to a permanent program now rather than wait for the start of a third year of the pilot project was driven by the success of the pilot project so far.

During the two years of the pilot program, a total of 242 MW was awarded to developers by BPU. The pilot project required that at least 40% of all approved projects reserve at least 51% of their capacity for low- and middle-income households, and all approved projects met this target.

Scott Elias, senior director of state affairs, Mid-Atlantic for SEIA, said the trade group is working with the state to develop a program that adds at least 150 MW of solar power capacity each year.

“We are thrilled that each of the 105 approved community solar projects in New Jersey is providing low-to-moderate income communities with clean, affordable energy,” Elias said in a statement. He said regulatory changes to the community solar program, including improvements to verification rules for low- and middle-income subscribers, “are another positive step in improving access to the benefits of electricity. clean for low-income communities and communities of color”.

Electric vehicle and fleet electrification incentives

New Jersey has also taken a leadership role in developing incentives to increase adoption of electric vehicles (EVs) by general consumers and fleet operators.

Among the consumer incentives, individuals who sell, lease, or lease a new or used zero-emission vehicle are exempt from sales and use taxes on that vehicle. The state is also home to the Charge Up New Jersey program, which offers incentives to residents who purchase or lease new battery-electric or plug-in hybrid vehicles with MSRPs below $55,000.

New Jersey residents are also eligible for the federal plug-in electric vehicle tax credit, which provides a basic credit of $2,500 for the purchase of an electric vehicle, and an additional $417 for each kWh of EV battery capacity greater than 4 kWh. .

On the fleet side, New Jersey has its It Pay$ to Plug In program, which provides grants to offset the costs of purchasing and installing electric vehicle charging stations for businesses, governments, institutions schools, multi-unit apartment buildings and non-profit organizations. organizations. The program covers up to 100% of the costs of government public charging stations, 80% of the costs of private public charging stations and up to 60% of the costs of workplace charging stations and building charging stations multiple dwellings.

The maximum incentive for a Level 1 charging station is $750, with the incentive up to $4,000 for Level 2 charging and up to $200,000 per location for installing two or more ports DC fast charging.

In addition to charging infrastructure incentives, the New Jersey Zero Emissions Incentive Program is a $15 million voucher pilot program that provides incentives to businesses and other similar entities that purchase new zero-emission vehicles from middleweight who will operate in the greater Camden Newark area. .

For vehicles from 8,501 to 10,000 pounds, the voucher is $25,000, which increases to $55,000 for vehicles from 10,001 to 14,000 pounds; $75,000 for vehicles from 14,001 to 16,000 lbs; $85,000 for vehicles from 16,001 to 19,500 lbs; and $100,000 for vehicles 19,501-26,000 lbs. Businesses owned by women, minorities and veterans are eligible for a bonus of $4,000 per vehicle, while small businesses are eligible for a 25% increase in the base amount of the voucher per vehicle and $2,000 per scrapped and replaced vehicle.

In addition to these existing incentives, in February 2021 Governor Phil Murphy announced $100 million for the following clean transportation projects:

  • $9 million in grants for local government electrification projects that will help improve air quality in environmental justice communities through the deployment of electric garbage and delivery trucks;
  • $13 million in grants for low- and middle-income communities to reduce emissions that affect children’s air quality through the deployment of electric school buses and shuttles;
  • $5 million in grants for fair mobility projects that will bring electric vehicle booster and charging stations to four New Jersey cities;
  • $5 million in grants for the deployment of fast-charging infrastructure at 27 sites across the state;
  • $36 million to reduce diesel and black carbon emissions in environmental justice communities by electrifying ports, cargo handling and other medium and heavy equipment in port and industrial areas;
  • $15 million for the electrification of NJ TRANSIT buses; and
  • $15 million in flexible funding to further support the above initiatives.

This content is copyrighted and may not be reused. If you wish to cooperate with us and wish to reuse some of our content, please contact: editors@pv-magazine.com.

#Solar #Incentive #States #Jersey

Add Comment