New Jersey

Incentives/Policies for Renewable Energy

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Interconnection Standards

Last DSIRE Review: 12/19/2008

Incentive Type:	Interconnection
State:	New Jersey
Eligible Renewable/Other Technologies:	Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, 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
Standard Agreement:	No
Insurance Requirements:	"Additional" liability insurance not required for systems that meet certain technical standards
External Disconnect Switch:	Not required for systems that meet certain standards
Net Metering Required:	Yes
Web Site:	http://www.njcleanenergy.com/ renewable-energy/programs/net-metering-and-interconnection
Authority 1:	N.J. Stat. § 48:3-87
Date Enacted:	1999 (amended 2008)
Authority 2:	N.J.A.C. 14:8-4.1 et seq.
Date Enacted:	09/13/2004
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. According to the, order new proposed rules are due by May 1, 2008; however, as of August 2008 the only rule proposals that have arisen as a result of this order 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.

Legislation enacted by New Jersey in February 1999 requires electric distribution companies to offer net metering to residential and small commercial customers with photovoltaic and wind-energy systems. To implement net metering the New Jersey Board of Public Utilities (BPU) adopted interim standards in 2001. In September 2004, the BPU adopted final rules that substantially increased the types and size of systems eligible for interconnection. The final rules clarify and simplify interconnection for most residential and small commercial facilities. (These rules do not apply to municipal utilities and electric cooperatives in New Jersey.)

In January 2008, S.B. 2936 made substantial amendments to the net metering law, most notably extending net metering to large commercial and industrial customers and expanding the list of eligible technologies to include all "Class I" renewable energy resources. The law also permits utilities to recover the costs of "any new net meters, upgraded net meters, system reinforcements or upgrades, and interconnection costs" through either their regulated rates or from net-metered customers. Under the current law (as amended by S.B. 2936) the BPU is authorized to allow utilities to cease offering net metering if the aggregate capacity of net metered systems reaches 2.5% the state peak electricity demand. However, the law only states that the New Jersey Board of Public Utilities (BPU) "may" authorize utilities to cease offering net metering under these circumstances; it is not compelled to do so.

The following provisions are included in the BPU's final rules:

Systems up to 2 megawatts (MW) in capacity are eligible for net metering.
There are three different levels of review procedures for applications, depending on size and certification. Level 1 applies to inverter-based systems with a capacity rating of 10 kilowatts (kW) or less. Level 2 applies to systems with a maximum capacity of 2 MW that are certified by a nationally-recognized testing and certification laboratory as meeting IEEE 1547 and UL 1741 compliance standards. Level 3 applies to systems with a maximum capacity of 2 MW that do not qualify for either the Level 1 or Level 2 interconnection review procedures.
Fees vary by level. There is no fee for Level 1 interconnection. Level 2 interconnection may include a fee of $50 plus $1 per kW of capacity (not to exceed $100). Level 3 may include a fee of $100 plus $2 per kW of capacity, as well as charges for actual time spent on any impact and/or facilities studies required by the standard.
Utilities may not require Level 1 and Level 2 customer-generators to install additional controls or external disconnect switches not included in the equipment package, to perform or pay for additional tests, or to purchase additional liability insurance.
An external disconnect switch is no longer required.
Interconnection to networks is permitted.

Interconnection applications, guidelines and contacts for the state's distribution utilities -- Atlantic City Electric, Rockland Electric, PSE&G, and Jersey Central Power and Light -- are available here.

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.