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New Jersey

An arrow graphic shows that New Jersey’s renewable portfolio standard is set at 22.5% in 2021.

Carve-out: Solar 4.1% retail electricity sales by 2028; offshore wind 1,100 MW
Tracking system: PJM-Generation Attribute Tracking System (PJM-GATS)

New Jersey's investor-owned utilities (IOUs) and retail electric suppliers are required to source a percentage of their electricity sales from qualified renewable energy resources. The renewable resources are divided into two classes: Class I contains newer technologies such as wind and solar; Class II resources include hydro and waste-to-energy. New Jersey's solar market growth is tied to the performance of its competitive Solar Renewable Energy Certificate (SREC) market due to a relatively high compliance payment. Customers of the four regulated utilities under the Board of Public Utilities may apply for solar loan programs under the utilities' solicitations.

Net Metering

New Jersey's IOUs, energy suppliers, and select competitive municipal utilities and electric cooperatives offer net metering to retail customers with renewable generation.

System size limit: Energy production of the system does not exceed property's annual on-site energy demand

Aggregate cap: Evaluated when 2.5% of utility's peak demand is met.

Credit: Net excess generation is credited at the utility retail rate.

RECS: Customers retain ownership of renewable energy certificates (RECs).

Meter aggregation: Public entities (e.g., state and local governments, school districts, local agencies) can aggregate meters; third-party meter aggregation is allowed.

Interconnection

New Jersey's Interconnection standards apply to all electric distribution utilities, except for a few municipal utilities and electric cooperatives. All Class I renewable resources are eligible for interconnection, which are separated into three tiers as below.

Eligible Systems Type of Interconnection
Inverter-based systems ≤10 kW Level 1 — Fast-track interconnection
Certified inverter-based systems >10 kW and ≤ 2 MW Level 2
Other systems that do not qualify for levels 1 and 2 Level 3 — Additional reviews

System capacity limit: Energy production of the system does not exceed property's annual on-site energy demand.

Insurance requirements: Additional liability insurance is not required.

External disconnect switch: Not required for inverter-based systems <2 MW that meet technical standards.

Third Party Ownership

Third party solar power purchase agreements are allowed in New Jersey.

Community Solar

New Jersey currently does not have a statewide community solar policy or program. Municipalities, schools, and other public entities can aggregate meters and provide electricity to their buildings. Utilities and developers may offer community solar.

State Incentive Programs

Program Administrator Incentive
Solar Energy Sales Tax Exemption New Jersey Division of Taxation All solar equipment is 100% exempt from the state sales tax.
Solar Energy Property Tax Exemption New Jersey Department of the Treasury 100% of the value added to the property by a renewable system is exempt from property tax.

Utility Incentive Programs

The Board of Public Utilities directs the four regulated utilities to develop solar financing programs. Three regulated distribution companies offer SREC-based financing to their customers with the Board of Public Utilities' approval, while PSE&G has a separate loan program.

Utility Incentive Limitations
Jersey Central Power and Light, Rockland Electric, and Atlantic City Electric: SREC-Based Financing Program (Fourth Solicitation) Segment 1: net-metered systems ≤50 kW

Segment 2: net-metered systems >50 kW (no limit)

Segment 3: grid supply/ utility scale systems on landfills/brownfields/ historical fills
For segment 2, the total requested capacity of the three utilities is as follows:

Jersey Central Power and Light: 10.365 MW

Atlantic City Electric: 7.725 MW

Rockland Electric: 1 MW
Public Service Electric & Gas Solar III Loan Program (Fifteenth Solicitation) 10-year loan term for customers of different segments:

Small Non-Residential Segment (≤ 150 kW)

Large Non-Residential Segment (> 150kW and ≤ 2MW)

Residential Segment

Aggregated Residential Segment
Total 97.5 MW capacity

Resources

The list below provides some resources for each type of policy or program. Please reference and contact relevant authorities and local utilities for the most up-to-date and accurate information on state and utility policies and incentive programs.

Renewable Portfolio Standard

Net metering and Interconnection

Programs and Incentives

Others