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Potential Bill for Solar In New Jersey

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This was brought to our attention this morning. There are no other details except for the bill number and the title. We will let our customers know details as we get them. Changes to the Alternative Compliance Payment (SACP) have an effect on New Jersey SREC Prices. We need more details to even determine if this bill is changing SACP for legacy New Jersey Solar.
 

Bill A5460

Session 2024 - 2025

Revises value of solar alternative compliance payment.

 
 
 
Updated 3-18-2025
 
Bill A5460 was introduced, referred to Assembly State and Local Government Committee on 3-17-2025 
 
 
Here are the proposed changes to the law:
[remove] ADD
 
The board shall [determine an appropriate level of solar 34 alternative compliance payment, and] permit each supplier or 35 provider to submit an SACP to comply with the solar electric 36 generation requirements of paragraph (3) of subsection d. of this 37 section.  
 
 The value of the SACP for each Energy Year, for Energy 38 Years 2014 through 2033 per megawatt hour from solar electric 39 generation required pursuant to this section, shall be: 

    EY 2025     $208

     EY 2026     [$198] $50

     EY 2027     [$188] $40

     EY 2028     [$178] $30

     EY 2029     [$168] $20

     EY 2030     [$158] $10

     EY 2031     [$148] $10

     EY 2032     [$138] $10

     EY 2033     [$128] $10.

 

Any cost savings that accrue to an electric public utility as a result of the changes to the alternative compliance payment rate made pursuant to P.L.    , c.    (C.           ) (pending before the Legislature as this bill) shall be reflected in the rates charged by the electric public utility, as determined by the board.

 

Our Interpretation:

 

If these changes are passed into law 118,000 residential and 6,000 commercial, school and municipal solar owners in New Jersey that installed solar between 2010 and 2020 will see their SREC payments decrease by 80% to 90%. 75 percent installed their solar between 2015 and 2020. 

 

Many of the solar owners have solar leases that they rely on the SREC payments to make their solar lease payments. 

 

The savings will not be passed onto ratepayers. Energy companies have already contracted for substantial amounts of power for the next few years through the Basic Generation Services (BGS) and bilateral contracts. 

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