The New Jersey Board of Public Utilities (BPU) voted on and passed the straw proposal recommended by the Clean Energy Program staff. This ensures a future for the SREC program based on the improvements crafted over the last year through proposals, consultation and public recommendation. The pilot program will continue as it seeks ways balance the interests of buyers and sellers over time. Among the recommendations accepted are:
SRECs starting in 2009 …
Value of SRECs will approximately double, then taper down over time. That is, the value and alternative compliance payment amount (ACP) will be set higher
Two year vintage – Certificates can be sold for two years instead of one
Qualification Life – SRECs will be earned for 15 years after rebate has been received (Valid for existing installations 15 year earning period will begin when rebate was received)
Rebates will be made available only for smaller systems (<10 KWH) under the SREC program
To be worked out over the coming year …
Annual Caps – To adjust incentives of the program so that Solar becomes on financial par with other means of producing electricity over time
Securitization – While there is always risk involved in buying and selling a commodity such as an SREC, the value should be secured so that it is attractive to invest in Solar
We look forward to a healthy future for solar in NJ and to your posted comments about the passage of the proposal!