New Jersey Moves to Phasing Out Solar Subsidies

At New Jersey’s Board of Public Utilities’ board meeting, the Board adopted a rule beginning the process of phasing out the current program.

The state of New Jersey in the USA is planning to reduce the financial burden by reducing the subsidies given for the development of solar power.

The Solar Renewable Energy Certificate program began in 2004 has been running since the last 14 years and now that the industry has matured and the cost of installing solar has fallen thus the state is deciding to remove the subsidies.

At New Jersey’s Board of Public Utilities’ board meeting, the Board adopted a rule beginning the process of phasing out the current SREC program and developing a new cost-effective initiative that will build upon the success of the state’s current solar process.

“New Jersey’s solar program has been a great success story,” said BPU President Joseph L. Fiordaliso. “Just recently we surpassed 100,000 solar installations, placing us in the nation’s top ten for home and business solar installations.”

The state’s Clean Energy Act which was signed in May required the BPU to close the SREC program to new applications when 5.1% power from each power supplier comes from solar energy.

BPU spokesman Peter Peretzman in a news release said that “board staff has released a “straw proposal” that will be subject to public comment and a series of public meetings in the first half of 2019.”

The new program will aim to provide maximum benefit to ratepayers at the lowest cost; support the continued growth of the solar industry; ensure that prior investments retain value. The new program will also meet the Governor’s commitment of 50 percent Class I Renewable Energy Certificates (“RECs”) by 2030 and 100 percent clean energy by 2050.