Solar power in New Jersey
Encyclopedia
Solar power in New Jersey has been aided by a Renewable Portfolio Standard
which requires that 22.5% of New Jersey
's electricity come from renewable resource
s by 2021, and by one of the two most favorable net metering
standards in the country, along with Colorado
, both of with allow unlimited customers up to 2 megawatts each to use net metering.
New Jersey is second in the nation in the total number of homes and businesses which have solar panels installed. As of November 30, 2010, 7,578 solar photovoltaic
systems have been installed. New Jersey is the second largest solar state in the U.S. with 137 megawatts of installed solar power in 2010 which was almost a 140% increase over the 57.3 megawatts installed in 2009 and 517% increase over the 22.5 megawatts of installed New Jersey solar in 2008. In addition, New Jersey became the second state (California) to install over 100 MW in a single year (2010). Many of the homes, schools and businesses which have installed solar panels can be monitored online on the internet.
sources by 2021. In addition, 2.12% must come from solar electricity, an amount estimated to be 1,500 megawatts (MW). Solar Renewable Energy Certificates
(SRECs) must be purchased by electricity suppliers to meet the state targets or else they face a fine known as a Solar Alternative Compliance Payment (SACP) that was $0.691/kWh in 2010.
(SRECs) to meet the solar energy carve-out of the state RPS. In the 2011 Energy Year, 306,000 SRECs (or MWhs of solar electricity) must be purchased by electricity suppliers in the state in order to meet the state solar requirement. That requirement grows to over 5 million in 2026.
An SREC program is an alternative to the feed-in tariff
model popular in Europe. The key difference between the two models is the market-based mechanism that drives the value of the SRECs, and therefore the value of the subsidy for solar. In a feed-in tariff model, the government sets the value for the electricity produced by a solar facility. If the level is too high, too much solar power is built and the program is more costly. If the feed-in tariff is set too low, not enough solar power is built and the program is ineffective.
The SREC program allows for the creation of a certificate with every megawatt-hour (MWh) of electricity produced. The certificate represents the "solar" aspect of the electricity that is produced and can be unbundled and sold separately from the electricity itself. Electricity companies, known as load-serving entities, are required by state RPS laws to procure a certain amount of their electricity from solar. Since it is often more costly for them to build solar farms themselves, the load-serving entities will purchase SRECs from solar generators and use the SRECs to comply with the state laws. With an SREC market, the value of an SREC is determined by supply and demand, subject to certain limitations. If solar is slow to develop, SREC values will remain high, encouraging the development of solar. If too much solar is added, SREC values will decrease, which in turn lowers the attractiveness of the investment. The goal of an SREC market is to find the SREC price that effectively represents the difference between the cost of producing other electricity and the cost of producing solar electricity. As the cost of solar electricity comes down, so will the value needed for SRECs. SRECs in New Jersey have traded as high as $680 per MWh on SRECTrade.com. In comparison, the average sale price for the electricity itself ranges from $50 per MWh to $180 per MWh. The value created from the benefits of selling SRECs dwarf the value created by the actual electricity produced in today's market. This means that SRECs play a major role in the return on investment for solar in New Jersey.
, Hamilton
, Linden
, and Trenton
.
Renewable Portfolio Standard
A Renewable Portfolio Standard is a regulation that requires the increased production of energy from renewable energy sources, such as wind, solar, biomass, and geothermal...
which requires that 22.5% of New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
's electricity come from renewable resource
Renewable resource
A renewable resource is a natural resource with the ability of being replaced through biological or other natural processes and replenished with the passage of time...
s by 2021, and by one of the two most favorable net metering
Net metering
Net metering is an electricity policy for consumers who own renewable energy facilities or V2G electric vehicles. "Net", in this context, is used in the sense of meaning "what remains after deductions" — in this case, the deduction of any energy outflows from metered energy inflows...
standards in the country, along with Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
, both of with allow unlimited customers up to 2 megawatts each to use net metering.
New Jersey is second in the nation in the total number of homes and businesses which have solar panels installed. As of November 30, 2010, 7,578 solar photovoltaic
Photovoltaics
Photovoltaics is a method of generating electrical power by converting solar radiation into direct current electricity using semiconductors that exhibit the photovoltaic effect. Photovoltaic power generation employs solar panels composed of a number of solar cells containing a photovoltaic material...
systems have been installed. New Jersey is the second largest solar state in the U.S. with 137 megawatts of installed solar power in 2010 which was almost a 140% increase over the 57.3 megawatts installed in 2009 and 517% increase over the 22.5 megawatts of installed New Jersey solar in 2008. In addition, New Jersey became the second state (California) to install over 100 MW in a single year (2010). Many of the homes, schools and businesses which have installed solar panels can be monitored online on the internet.
Net metering
New Jersey has one of the two best net metering laws, along with Colorado, and is one of five states to receive an A in a comparison of the 38 states plus Washington D.C. which have net metering. Five received an F. New Jersey and Colorado are the only two states to allow unlimited net metering customers, up to 2 megawatts for each customer.Incentives
The New Jersey Clean Energy Program provides a rebate of $1.75/watt for residential systems less than 10 kW with an energy audit, or $1.55/watt without an energy audit. Non-residential photovoltaic systems up to 50,000 watts receive a rebate of $1.00/watt. An additional $0.25/watt for each is available for systems partially manufactured or assembled in state, such as inverters or solar PV modules. The rebate had, prior to February 2, 2009, been $3.50/watt. During 2009 and 2010 the 30% Federal tax credit becomes a 30% grant for systems completed or started during those two years and completed before 2017, and beginning in 2009, has no limit either for commercial or residential systems. Prior to 2009 residential credits were capped at $2,000.Renewable Portfolio Standard
New Jersey's renewable portfolio standard (RPS) is one of the most aggressive in the United States and requires each electricity supplier/provider to provide 22.5% from renewable energyRenewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
sources by 2021. In addition, 2.12% must come from solar electricity, an amount estimated to be 1,500 megawatts (MW). Solar Renewable Energy Certificates
Solar Renewable Energy Certificates
Solar Renewable Energy Certificates or Solar Renewable Energy Credits are a form of Renewable Energy Certificate or "Green tag". SRECs exist in states that have Renewable Portfolio Standard legislation with specific requirements for solar energy, usually referred to as a "solar carve-out"...
(SRECs) must be purchased by electricity suppliers to meet the state targets or else they face a fine known as a Solar Alternative Compliance Payment (SACP) that was $0.691/kWh in 2010.
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Solar Renewable Energy Certificates
In 2004, New Jersey adopted a program promoting the use of Solar Renewable Energy CertificatesSolar Renewable Energy Certificates
Solar Renewable Energy Certificates or Solar Renewable Energy Credits are a form of Renewable Energy Certificate or "Green tag". SRECs exist in states that have Renewable Portfolio Standard legislation with specific requirements for solar energy, usually referred to as a "solar carve-out"...
(SRECs) to meet the solar energy carve-out of the state RPS. In the 2011 Energy Year, 306,000 SRECs (or MWhs of solar electricity) must be purchased by electricity suppliers in the state in order to meet the state solar requirement. That requirement grows to over 5 million in 2026.
An SREC program is an alternative to the feed-in tariff
Feed-in Tariff
A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies. It achieves this by offering long-term contracts to renewable energy producers, typically based on the cost of generation of each technology...
model popular in Europe. The key difference between the two models is the market-based mechanism that drives the value of the SRECs, and therefore the value of the subsidy for solar. In a feed-in tariff model, the government sets the value for the electricity produced by a solar facility. If the level is too high, too much solar power is built and the program is more costly. If the feed-in tariff is set too low, not enough solar power is built and the program is ineffective.
The SREC program allows for the creation of a certificate with every megawatt-hour (MWh) of electricity produced. The certificate represents the "solar" aspect of the electricity that is produced and can be unbundled and sold separately from the electricity itself. Electricity companies, known as load-serving entities, are required by state RPS laws to procure a certain amount of their electricity from solar. Since it is often more costly for them to build solar farms themselves, the load-serving entities will purchase SRECs from solar generators and use the SRECs to comply with the state laws. With an SREC market, the value of an SREC is determined by supply and demand, subject to certain limitations. If solar is slow to develop, SREC values will remain high, encouraging the development of solar. If too much solar is added, SREC values will decrease, which in turn lowers the attractiveness of the investment. The goal of an SREC market is to find the SREC price that effectively represents the difference between the cost of producing other electricity and the cost of producing solar electricity. As the cost of solar electricity comes down, so will the value needed for SRECs. SRECs in New Jersey have traded as high as $680 per MWh on SRECTrade.com. In comparison, the average sale price for the electricity itself ranges from $50 per MWh to $180 per MWh. The value created from the benefits of selling SRECs dwarf the value created by the actual electricity produced in today's market. This means that SRECs play a major role in the return on investment for solar in New Jersey.
Solar 4 All project
In 2009, Public Service Enterprise Group, the largest utility company in New Jersey, announced plans to install solar panels on 200,000 utility poles in its service area in a project costing $773 million, the largest such project in the world. The Solar 4 All project intends to increase the capacity for renewable energy in New Jersey and is expected to be completed in 2013. In addition, PSEG is building four solar farms in EdisonEdison, New Jersey
Edison Township is a township in Middlesex County, New Jersey. What is now Edison Township was originally incorporated as Raritan Township by an Act of the New Jersey Legislature on March 17, 1870, from portions of both Piscataway Township and Woodbridge Township...
, Hamilton
Hamilton Township, Mercer County, New Jersey
Hamilton Township is a Township in Mercer County, New Jersey, United States. As of the United States 2010 Census, the township had a total population of 88,464...
, Linden
Linden, New Jersey
- Local government :, the Mayor of Linden is . The former longtime Mayor of Linden is 82-year-old John T. Gregorio, who served as mayor of Linden for 30, nonconsecutive years and was repeatedly tagged with scandal during his mayoral career, including one felony conviction, later pardoned, which...
, and Trenton
Trenton, New Jersey
Trenton is the capital of the U.S. state of New Jersey and the county seat of Mercer County. As of the 2010 United States Census, Trenton had a population of 84,913...
.
See also
- Renewable energyRenewable energyRenewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
- Wind power in New JerseyWind power in New JerseyWind power in New Jersey is in the early stages of development. There are various projects underway to create windfarms along coastal areas in the state on land, on piers, and on the continental shelf of the Atlantic Ocean off the southern Jersey Shore. Legislation has been enacted to support the...
- Nuclear power plants in New JerseyNuclear power plants in New Jersey*Atlantic Nuclear Power Plant in Little Egg Harbor, New Jersey *Forked River Nuclear Power Plant *Hope Creek Nuclear Generating Station in Lower Alloways Creek Township, New Jersey...
- List of power stations in New Jersey