Solar Renewable Energy Certificates (SRECs) (New Jersey)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Solar Renewable Energy Certificates (SRECs)|
|Incentive Type||Performance-Based Incentive|
|Applicable Sector||Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Tribal Government, Fed. Government, Agricultural, Institutional|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||Varies; Monthly average prices ranged from 176-223 per MWh during 2014 with significant variations for individual trades|
|Eligible System Size||No specific limits, but system must be connected to distribution system; behind-the-meter systems must be sized so that annual output does not exceed annual on-site load|
|Equipment Requirements||Systems must be new and have five-year all-inclusive warranty; PV modules must listed by UL (or another nationally recognized testing laboratory) and inverters must be UL-1741 and IEEE 929 compliant; systems must be equipped with visual indicators and/or controls, have a monitoring capability that is readily accessible to the owner, and be equipped with an energy production meter that meets ANSI C.12 standards|
|Installation Requirements||Systems must be grid-connected to the "distribution system" in New Jersey. Systems not installed behind the meter of an electric customer (i.e., grid-supply systems) require approval from the BPU.|
|Maximum Incentive||2013-2014 compliance year: ~339 per MWh (~0.339 per kWh)|
|Terms||Systems must be registered with NJ Board of Public Utilities; facilities qualify to generate SRECs for 15 years after the date of interconnection|
|Program Administrator||New Jersey Board of Public Utilities|
|Date added to DSIRE||2004-08-12|
|Last DSIRE Review||2014-10-01|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
NOTE: On May, 2014, the Board of Public Utilities (BPU) published a report addressing methods to mitigate SREC price volatility in the market. The report can be accessed here.
New Jersey’s Renewable Portfolio Standard (RPS) includes a carve-out for solar, requiring the each electricity Load Serving Entities (LSEs) to provide at least 4.1% of the electricity through in-state solar installations by 2028. This solar carve-out, in addition to other supporting incentives has established NJ as one of the largest and dynamic solar market in the US.
Solar projects installed in New Jersey that are registered with the SREC Registration Program are qualified to generate Solar Renewable Energy Certificates (SRECs). SRECs represent the renewable attributes of solar generation, bundled in minimum denominations of one megawatt-hour (MWh) of production. New Jersey’s SREC program provides a means for SRECs to be created and verified, and allows electric suppliers to buy and retire these certificates in order to meet their solar RPS requirements. All electric suppliers must use the SREC program to demonstrate compliance with the RPS. New Jersey’s on-line marketplace for trading SRECs, launched in June 2004, is the first such operation in the world. The price of SRECs is determined primarily by their market availability and the price of the Solar Alternative Compliance Payment (SACP) for the state RPS. The SACP is effectively a ceiling on the value of SRECs because it is the per MWh payment that electricity suppliers must make if they fail to obtain enough SRECs to cover their RPS obligation.
Prior to 2008 the SACP was set at $300 per MWh. This was amended in 2007, and an eight-year schedule was established by the BPU for Energy Year (EY) 2009 - 2016. In 2012 S.B. 1925 established a 15-year schedule for EY 2014 - 2028. Past and current SACP levels are as follows:
|Contact Name||New Jersey Clean Energy Program - SREC Registration Program|
|Department||c/o Conservation Services Group|
|Address||75 Lincoln Highway, Suite 100|
|Place||Iselen, New Jersey|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||N.J. Stat. § 48:3-51 et seq.|
|Date Effective||1999 (subsequently amended)|
|Authority 2:||N.J.A.C. 14:8-1 & 14:8-2|
|Date Effective||03/01/2004 (subsequently amended)|
|Authority 3:||NJ BPU Solar Transition Order|
|Authority 4:||NJ BPU Solar Financing Board Order|
|Authority 5:||NJ BPU Solar Financing Review Order|
|Authority 6:||S.B. 1925|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.