There are several US markets that are setting the standard and path toward a clean energy future. None are doing more to remove the barriers than the state of New Jersey.  New Jersey's commitment to supporting solar energy has enabled it to become the 7th ranked US state for total solar installed at 3,739 MW, and it has a growth projection of an additional 2,284 MW installed over the next five years.  That growth projection will be supported by an innovative legislative program.

The Solar Act of 2021, and its Successor Solar Incentive (SuSI) Program, allow new solar projects to register to earn New Jersey Solar Renewable Energy Credits II (SREC-IIs). When a company holds SREC-IIs, it demonstrates that it owns a set of clean energy attributes, which have market (and marketing) value. When a company builds or purchases a solar energy project, it earns a set of SREC-IIs that document the clean energy attributes it has created.

How does the SuSI Program Work?

The SuSI Program consists of two sub-programs:

1. The Administratively Determined Incentive (ADI) Program provides administratively set incentives for net-metered residential projects, net-metered non-residential projects of 5 MW (dc) or less, all community solar projects, and, for an interim period, projects previously eligible to seek conditional certification from the Board under Subsection (t).
2. The Competitive Solar Incentive (CSI) Program will provide competitively set incentives for grid-supply projects and net-metered non-residential projects greater than 5 MW (dc). Board Staff is currently working with stakeholders to develop the design of the CSI Program with the goal of holding the first solicitation by early-to-mid 2022. For updates, please continue to check the Solar Proceedings page on the New Jersey’s Clean Energy Program website.

How much is a SREC-II worth?

Both the ADI and CSI Programs provide one SREC-II for each megawatt-hour of solar electricity produced from a qualifying solar facility. The value of each qualifying facility’s SREC-II will be set administratively in the case of the ADI Program, and via a competitive process in the case of the CSI Program. The SuSI values ($/MWh) are guaranteed for 15 years, and have been designed to help the state incentivize the introduction of 3,750 MW of solar generation during a five-year period from 2022 to 2026, including:

• At least 300 MW of net metered solar for 5 years;
• At least 150 MW of community solar for 5 years;
• An average of 300 MW of grid scale solar annually between now and 2026.

How can solar energy help you?

New Jersey has set up a number of incentive programs to help businesses and municipal water authorities take advantage of solar energy.

Corporate and Industrial Businesses

Corporate and industrial businesses can take advantage of New Jersey's community solar incentives by siting up to 5-MW solar installations on their property.

• Lease your rooftop for solar
  • Do you have a large rooftop that is currently unused? In many cases, this unused resource could begin to generate income through a solar lease.
  • A solar lease could generate about $0.35/sq ft/yr for the building owner.
  • In some cases, leasing your roof for a solar facility can get you a new roof and 7-15 years of new income over the life of a solar project.

• Behind the Meter solar and energy storage projects
  • Financial Benefits:
    
    Installing in a solar energy facility on-site can help you reduce your energy costs by allowing you to generate a portion or all of your own electricity while insulating your company from unpredictable Incremental Revenue Generation Energy costs and demand charges. On-site generation operates at a fixed cost and can also be leveraged to meet real-time grid/utility stress, securing the following financial benefits for facility owners:
    
    • Electricity budget certainty over the life of the project
    • Reduction/elimination of Peak Demand charges
    • Tax advantages (26% ITC)
    • The opportunity for SREC-II income
    • The opportunity to either retain the value of these incentives, or to trade them to help reduce the cost of the project
      
      
  • Improved Resiliency:
    
    Grid instability and climate events can result in significant, unplanned operational disruptions. On-site distributed energy resources combined with the latest battery energy storage systems can provide a greater degree of certainty power supply.
    • Production and operations can be strategically matched to on-site generation and storage systems
    • On-site generation can allow an operation to access more advantageous utility rates for balance of power
    • Effectively solve power quality requirements
      
      
  • Environmental, Social, and Governance Benefits:
    
    In addition to creating environmental benefits, renewable energy creates important social benefits as well. On-site renewable energy is a great reminder to your employees and stakeholders that your organization is committed to social responsibility and sustainability. The quantifiable output of renewable energy systems can help you demonstrate your ESG commitment in an extremely visible way, including:

• • • Lowering the carbon footprint of your facility and operation
    • Increasing value for customers, employees, and community stakeholders
    • Aligning with investor and industry standards

Municipal Water Authorities

Municipal water authorities may also be able to take advantage of New Jersey's community solar incentives by siting up to 5-MW solar installations on properties that they currently manage as "passive" un-used assets - your bodies of water.

• Floating Solar Technology
  
  Any body of water that is 10 acres or more, secured, and not currently used for recreation can become a site for a solar energy facility. Solar panels that are sited on water bodies have higher production values that those sited on land due to the cooling effect of water and additive reflective gains from the water's surface.
  
  Floating solar technology is tested and proven, and the floating technology provider Ciel & Terre USA has been vetted world-wide and continues to build portfolio in US.
  
  Lease rates for floating solar facilities are similarly prices to those on land, and in New Jersey, a lease can a bring property owner about $10,000 per acre per year.
  

Why work with Apex Clean Energy?

Apex is striving to replicate our success with utility scale wind and solar renewable projects to create a scalable business in the Distributed Energy Resource (DER) application.  Our engineering, development, project management and asset operation teams are well-suited to create an on-site renewable energy project that leverages the markets and brings incremental value to your organization.

So what's next?  Reach out to our DER team, tell us about your experiences with renewables, your organization's ESG goals and operational challenges, and allow us to sit down and talk about possible paths forward.  No heavy lifting on your part, no early-on financial requirements - just a willingness to talk, share energy data and allow Apex to put our team to work to do what we do best - develop the best renewable energy generation projects in the industry.