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The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are!

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New Jersey

New Jersey

Incentives/Policies for Renewables & Efficiency

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Solar Renewable Energy Certificates (SRECs)   

Last DSIRE Review: 10/01/2014
Program Overview:
State: New Jersey
Incentive Type: Performance-Based Incentive
Eligible Renewable/Other Technologies: Photovoltaics
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Tribal Government, Fed. Government, Agricultural, Institutional
Amount:Varies; Monthly average prices ranged from $176-$223 per MWh during 2014 with significant variations for individual trades
Maximum Incentive:2013-2014 compliance year: ~$339 per MWh (~$0.339 per kWh)
Terms:Systems must be registered with NJ Board of Public Utilities; facilities qualify to generate SRECs for 15 years after the date of interconnection
Eligible System Size:No specific limits, but system must be connected to distribution system; behind-the-meter systems must be sized so that annual output does not exceed annual on-site load
Equipment Requirements:Systems must be new and have five-year all-inclusive warranty; PV modules must listed by UL (or another nationally recognized testing laboratory) and inverters must be UL-1741 and IEEE 929 compliant; systems must be equipped with visual indicators and/or controls, have a monitoring capability that is readily accessible to the owner, and be equipped with an energy production meter that meets ANSI C.12 standards
Installation Requirements:Systems must be grid-connected to the "distribution system" in New Jersey. Systems not installed behind the meter of an electric customer (i.e., grid-supply systems) require approval from the BPU.
Start Date:03/01/2004
Web Site:
Authority 1:
Date Effective:
N.J. Stat. ยง 48:3-51 et seq.
1999 (subsequently amended)
Authority 2:
Date Effective:
N.J.A.C. 14:8-1 & 14:8-2
03/01/2004 (subsequently amended)
Authority 3:
Date Enacted:
Date Effective:
NJ BPU Solar Transition Order
Authority 4:
Date Enacted:
NJ BPU Solar Financing Board Order
Authority 5:
Date Enacted:
NJ BPU Solar Financing Review Order
Authority 6:
Date Enacted:
Date Effective:
S.B. 1925

NOTE: On May, 2014, the Board of Public Utilities (BPU) published a report addressing methods to mitigate SREC price volatility in the market. The report can be accessed here.

New Jersey’s Renewable Portfolio Standard (RPS) includes a carve-out for solar, requiring the each electricity Load Serving Entities (LSEs) to provide at least 4.1% of the electricity through in-state solar installations by 2028. This solar carve-out, in addition to other supporting incentives has established NJ as one of the largest and dynamic solar market in the US.

Solar projects installed in New Jersey that are registered with the SREC Registration Program are qualified to generate Solar Renewable Energy Certificates (SRECs). SRECs represent the renewable attributes of solar generation, bundled in minimum denominations of one megawatt-hour (MWh) of production. New Jersey’s SREC program provides a means for SRECs to be created and verified, and allows electric suppliers to buy and retire these certificates in order to meet their solar RPS requirements. All electric suppliers must use the SREC program to demonstrate compliance with the RPS. New Jersey’s on-line marketplace for trading SRECs, launched in June 2004, is the first such operation in the world. The price of SRECs is determined primarily by their market availability and the price of the Solar Alternative Compliance Payment (SACP) for the state RPS. The SACP is effectively a ceiling on the value of SRECs because it is the per MWh payment that electricity suppliers must make if they fail to obtain enough SRECs to cover their RPS obligation.

Prior to 2008 the SACP was set at $300 per MWh. This was amended in 2007, and an eight-year schedule was established by the BPU for Energy Year (EY) 2009 - 2016. In 2012 S.B. 1925 established a 15-year schedule for EY 2014 - 2028. Past and current SACP levels are as follows:

Energy Year










































SREC prices vary according to supply and demand in the market. The wide fluctuations in the SREC prices in the NJ market have been a significant concern to the regulators and the solar industry. To address this issue, on May, 2014, the Board of Public Utilities (BPU) published a report addressing methods to mitigate SREC price volatility in the market. The report can be accessed here


Participants must register their solar project with the SREC Registration Program prior to the start of the construction in order to establish eligibility to earn SRECs.

With respect to solar-electric systems, S.B. 1925 defines the term to include: (1) net metered facilities, (2) facilities that meet the definition of "on-site generation"; (3) facilities eligible for aggregated net metering; (4) facilities owned or operated by a public utility approved by the BPU; (5) facilities connected to the distribution system at 69 kilovolts (kV) or less and approved by the BPU; and (6) facilities certified by the BPU and DEP as being located on a brownfield, an area of historic fill, or a closed landfill. The definition does not include any facility connected to the grid at a voltage of higher than 69 kV, unless the facility is a net metering facility.

Solar facilities have a 15-year "qualification life", meaning that they are eligible to generate SRECs for 15 years after they are connected to the grid. The qualification life ends on the first May 31 (the end of the RPS compliance year) that is at least 15 years after the interconnection date. If a generator has accumulated a fraction of an MWh by the end of a reporting year (May 31), the fraction may be carried over and combined with energy generated in one or more subsequent reporting years in order to make a full MWh that is eligible for sale.

SREC Tracking

SRECs accrue from participating solar-electric facilities beginning March 1, 2004. Generators must register with the BPU through the SREC Registration Program (see program web site above) in order to participate.

SRECs generated prior to June 1, 2009 could only be used for compliance during the compliance year in which they were generated. Effective June 1, 2009 SRECs had a trading lifetime of two years, meaning that an SREC could be used for by an electric supplier for RPS compliance during the year it is issued or during the next compliance year. This lifetime was extended to three years -- the year of generation plus the following two compliance years -- by A.B. 3520 (2010), effective in July 2010. It has now been further extended to 5 years -- the year of generation plus the following four compliance years -- by S.B. 1925 effective July 23, 2012.

Pricing information for SRECs originating within New Jersey is available from the PJM Generation Attribute Tracking System (GATS) through the Public Reports section of the web site.

SREC based Financing Programs

In April 2008, Public Service Electric and Gas (PSE&G) received approval from the BPU to offer a loan program to help its customers finance PV systems. The PSE&G Solar Loan Program allows customers to take a loan from the utility for up to 40-60% of the cost of the PV system. Customers may then repay the loan using SRECs produced by their system at a basement price initially set at $475 per SREC. The initial $105 million program was scheduled to last two years. An extension of the program, Solar Loan II, was approved by the BPU in December 2009 to provide additional financing amounting to $143 million through 2011 under similar though not identical terms. Click here for further information on this program.

In July 2008 the BPU issued an order requiring the state's other electric distribution utilities (Jersey Central Power and Light, Atlantic City Electric, and Rockland Electric) to submit plans for purchasing SRECs from solar facilities through long-term contracts. The order contains several mandatory design requirements, including: (1) contract terms of 10-15 years; (2) separate market segments for projects of 50 kW or less and those between 50 and 500 kW (the upper limit); and, (3) an initial 3-year program period ending with the May 31, 2012 compliance year. The upper limit was subsequently raised to 2 MW in December 2010. So called "legacy" projects that received rebates through 2008 under the CORE program are not eligible for long-term contracts.

PSE&G is permitted to continue to offer its Solar Loan Program through its close. Atlantic City Electric and New Jersey Central Power and Light issued their first request for bids on July 30, 2009 and Rockland Electric began participating in the second solicitation issued October 1, 2009. Click here for further details on the individual utility programs and an FAQ on how the programs operate.

  New Jersey Clean Energy Program - SREC Registration Program
c/o Conservation Services Group
75 Lincoln Highway, Suite 100
Iselen, NJ 08830
Phone: (866) 657-6278
Web Site:
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.