Renewable Energy, Cleantech and Climate Change Special Committee

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NJ Board of Public Utilities to Hold Hearing on Next Steps for Solar Incentives

By Phyllis J. Kessler posted 03-20-2012 07:31 PM

  

 

The NJ Board of Public Utilities (BPU)will hold a public hearing on March 22, 2012 commencing at 9:30 a.m. in its offices at 44 S. Clinton Avenue, Trenton to discuss a “straw proposal” issued on March 6, 2012 by its Staff to provide support for the development of solar generating plants in the State of New Jersey in view of the drop in the prices of solar renewable energy certificates (SRECs) from more than $600 to approximately $200 per  1000 kwh generated by the solar plant.  The drop in SREC prices resulted from greater than expected installation of solar capacity in the state, which exceeded the requirements of the renewable portfolio standard for the development of solar established by the NJ Legislature.

 

The BPU will take oral and written comments to the straw proposal, which was proposed by its staff.   Written comments may be sent to [email protected] and are due at the close of the public hearing.  The hearing notice may be found at http://nj.gov/bpu/pdf/announcements/2012/SRPS.pdf.  Following is an abbreviated summary of the BPU Staff’s straw proposal:

 

  •          SREC program will be extended over 3 years through loan programs or solicitations by the NJ electric utilities (“electric distribution companies” or “EDCs”)
  •          Total eligible capacity over 3 years will be 120 MWs, allocated among the four NJ EDCs based on their retail sales
  •          EDCs will prepare and submit proposed programs to the BPU and may file for loan programs, solicitations or both
  •          Loan or solicitation process to seek lowest achievable cost on a “competitive” basis and not set a floor price.
  •          Time frame of the loan will be 10 years for the 1st years’ program and less for years 2 and 3
  •          Project size not to exceed net metering limit in the Net Metering Rules set forth in N.J.A.C. 14:8-4 et. seq.
  •          There would be a set aside for residential and small business market segments
  •          EDCs program costs would be paid by the solar developer or generation customer
  •          SRECs generated by the program may be sold by the utilities in the centralized auction, but the sale will be timed to minimize the impact on the market price
  •          BPU Staff will develop a revised Solar Alternative Compliance Payment (“SACP”) schedule for EY 2017 through EY 2026.

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