New Jersey Class 1 prices dropped $4 in the past week. Class 1 RECs are mostly purchased from out-of-state wind farms in PJM by New Jersey Energy Energy Companies.
Both of these bills were introduced by the legislators because the New Jersey BPU wants to eliminate payments to investors in New Jersey Solar that have already installed their panels. The BPU under Governor Murphy has in the past in both oral and written form has said that the panels are already installed and the money should be taken from the investors so that new solar can be installed at fixed payments. The aim is to lock in profits for solar investors at the expense of the ratepayers in New Jersey instead of using the competition of the market to determine prices. The introduction of these bills has created a chill in the energy investment community overnight.
The view is that if the New Jersey BPU is willing to disenfranchise New Jersey homeowners, businesses and schools that installed solar the payments that go to out-of-state wind farms will most likely be the next target.
New Jersey power prices have skyrocketed in the past year. Prices have risen mostly because back-up gas power plants that are needed to balance the grid during times of increased demand during extremely hot or cold days have been shut down by the Murphy backed BPU and Energy Master Plan of the last 8 years. The BPU is now scrambling to find money to keep installing new solar and has decided to eliminate SREC payments to New Jersey homeowners, businesses, and schools who have already borrowed money to install solar panels.