New Jersey
Incentives/Policies for Renewable Energy
|
 |
Last DSIRE Review: 05/01/2009
| Incentive Type: |
Net Metering |
| State: |
New Jersey |
| Eligible Renewable/Other Technologies: |
Solar Thermal Electric,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Geothermal Electric,
Anaerobic Digestion,
Tidal Energy,
Wave Energy,
Fuel Cells using Renewable Fuels
|
| Applicable Sectors: |
Commercial,
Industrial,
Residential
|
| Applicable Utilities: | Investor-owned utilities (electric distribution companies) |
| System Capacity Limit: | 2 MW
|
| Aggregate Capacity Limit: | No limit specified (commission may limit to 2.5% of peak demand)
|
| Net Excess Generation: | Generally credited to customer's next bill at retail rate; excess reconciled at end of annual period at avoided-cost rate
|
| REC Ownership: | Customer owns RECs
|
| Meter Aggregation: | Not addressed
|
|
Web Site: |
http://www.njcleanenergy.com/
renewable-energy/programs/net-metering-and-interconnection
|
|
Authority 1:
|
N.J. Stat. § 48:3-87
|
| Date Enacted: | 1999 (subsequently amended) |
| Date Effective: | 1999 |
|
Authority 2:
|
N.J.A.C. § 14:8-4.1 et seq.
|
| Date Enacted: | 09/13/2004 (subsequently amended) |
| Date Effective: | 10/04/2004 |
|
|
Summary:
Note: In September 2007, the New Jersey Board of Public Utilities (BPU) approved an order regarding a redesign of the state solar-energy program. As a result, the New Jersey Office of Clean Energy (OCE) has been directed to develop modified interconnection, net metering and renewable portfolio standard (RPS) rules consistent with the program transition. As of April 2009, the only rule proposals issued by the BPU that are related to this transition have dealt with the RPS.
Additional changes to the state's net metering and interconnection law made by S.B. 2936 in January 2008 have not yet been addressed through regulatory proceedings. The OCE Net Metering and Interconnection Standards Working Group is presently conducting stakeholder meetings to discuss these and other potential changes to the state's net metering and interconnection laws.
New Jersey's net-metering rules and interconnection standards apply to all residential, commercial and industrial customers of the state's investor-owned utilities (and certain competitive municipal utilities and electric cooperatives). Systems that generate electricity using solar, wind, geothermal, wave, tidal, landfill gas or sustainable biomass resources, including fuel cells (all "Class I" technologies under the state RPS), are eligible. The maximum individual system capacity is two megawatts (MW). There is no firm aggregate limit* on net metering.
A single metering arrangement is preferred. Customer-generators have several compensation options for net excess generation (NEG), listed below: - Customer-generator receives month-to-month credit for NEG at the full retail rate and is compensated for remaining NEG at the avoided-cost of wholesale power at the end of an annualized period.
- Customer-generator is compensated for all NEG on a real-time basis according to the PJM power pool real-time locational marginal pricing rate, adjusted for losses by the respective zone in the PJM.
- Customer generator may enter into a bilateral agreement with their electric supplier or service provider for the sale and purchase of NEG. Real-time crediting is permitted, subject to the applicable PJM rules.
The latter two options were added by S.B. 2936, enacted in January 2008 and effective July 11, 2008. S.B. 2936 also: (1) extended net metering to industrial and large commercial customers; (2) extended net metering to all systems that generate electricity using "Class I" renewable-energy resources; and (3) allowed utilities to recover the costs of "any new net meters, upgraded net meters, system reinforcements or upgrades, and interconnection costs" either through their regulated rates or from net-metered customers. The process for integrating these changes into the administrative rules is ongoing.
A separate rule making proceeding completed in March 2009 allows customer-generators to select any month of the year to begin their annualized period. The choice of an annualized period is generally permanent unless the utility voluntarily accepts the customer's choice of a new annualized period. Click here for a copy of the rule adoption, which also contains a link to the text of the amended rule.
Customers eligible for net metering retain ownership of all renewable-energy credits (RECs) associated with the electricity they generate. Customers with photovoltaic (PV) systems may apply to the New Jersey Board of Public Utilities (BPU) to participate in New Jersey's Solar Renewable Energy Certificates (SRECs) program, which tracks and verifies solar certificates, and allows the certificates to be sold on-line to electric suppliers to meet suppliers' solar renewable portfolio standard (RPS) requirements.
*S.B. 2936 amended this portion of the law by removing a potential financial impact cap of $2 million and by increasing the aggregate capacity trigger to 2.5% (formerly 0.1%) of statewide peak load. As before, the BPU retains discretionary authority over capping net metering if this trigger is met.
|
|
Contact:
| |
Benjamin Scott Hunter
New Jersey Board of Public Utilities
Renewable Energy Program Administrator, Office of Clean Energy
44 South Clinton Avenue
P.O. Box 350
Trenton, NJ 08625-0350
Phone: (609) 777-3300
Fax: (609) 777-3330
E-Mail: benjamin.hunter@bpu.state.nj.us
Web Site: http://www.bpu.state.nj.us
|
|
|
|
 |
Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
|
