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New Jersey BPU Adopts New Incentives for Solar Projects

New Jersey Long-Term Solar Successor Program: Commercial Projects for Solar Energy Farm Landowner Landlord Lease

At a special meeting held in Trenton on July 28, 2021, the New Jersey Board of Public Utilities (BPU) approved the following incentives under its New Jersey Solar Successor Incentive Program, or “SUSI.” These incentives will take effect in 30 days, at which time the Transition Incentive Program will close to new applications. References to MW below should be understood to mean megawatts of capacity, measured in Direct Current (DC). MWH refers to megawatt-hours of actual energy generated, measured in Alternating Current (AC).

BPU Solar Incentives

Projects described below as competitive procurement will not be able to apply for incentives until 2022, after a new stakeholder proceeding to be led by staff and a just-hired consultant.

Type of Project

Existing Incentive per MWH

Proposed Incentive per MWH

Contaminated or brownfield sites (a/k/a subsection (t))

$152.00

Competitive procurement, except that up to 75 MW may receive an incentive of $90.00

Grid supply rooftop (a/k/a subsection (r))

$152.00

Competitive procurement

Net-metered non-residential rooftop and canopy (1 MW or less)

$152.00

$100.00

Net-metered non-residential rooftop and canopy (5 MW or less, but more than 1 MW)

$152.00

$90.00

Net-metered non-residential rooftop and canopy (more than 5 MW)

$152.00

Competitive procurement

Community Solar

$129.50

$90.00 if Low and Moderate Income. $70.00 otherwise

Grid supply ground-mounted

$91.20

Competitive procurement

Net-metered residential ground-mounted

$91.20

$90.00

Net-metered residential rooftop and canopy

$91.20

$90.00

Net-metered non-residential ground mounted (1 MW or less)

$91.20

$85.00

Net-metered non-residential ground mounted (5 MW or less, but more than 1 MW)

$91.20

$80.00

Net-metered non-residential ground mounted (more than 5 MW)

$91.20

Competitive procurement

Floating solar panels

$91.20

Deferred

New Jersey Solar Successor Program

Net-metered projects for certain public entities will be entitled to an extra $20.00 per MWH, in recognition of the additional costs incurred in connection with public procurement laws.

In short, the changes in incentives are relatively minor except for non-residential rooftop and parking lot canopies, where the change is substantial. Also, grid supply projects and those on brownfield-type sites face tremendous uncertainty.

The BPU also set maximum blocks for projects to be approved for the year that began June 1, 2021, as follows:

  • 150 MW for residential
  • 150 MW for non-residential
  • 150 MW for community solar

If you have any questions about the existing Transition Incentive Program, the newly proposed successor program, or related public utilities or solar energy matters, please feel free to contact either us at jlaskey@norris-law.com or lmiller@norris-law.com.