Prospects for New Jersey Solar Bill Looking Bright

The New Jersey State Senate passed a bill, by a 24-12 margin, to increase the obligations for the purchase of Solar Renewable Energy Credits (SRECs). The measure was sponsored by solar champions Senator Bob Smith and Senator Christopher “Kip” Bateman. With a companion bill introduced by Assembly members Wayne DeAngelo, Tim Eustace and David Rible, the prospects for a two house passage of the legislation look bright.

The bill establishes a modest increase in SREC obligations in the near term for load serving entities (i.e. utilities and other retail electricity suppliers) on an annual basis and then maintains that obligation at 4.1 percent of total electric load for Energy Year 2021 and each year thereafter. (See Figure 1). It’s important to note the bill doesn’t increase the size of the overall solar obligation, just encourages New Jersey to reach the goal faster than the original schedule.

While the Solar Act of 2012 – another SEIA victory — made adjustments to New jersey’s SREC obligations for all energy out-years, the increase in SREC demand slows considerably in EY 2018 and beyond.  The bill passed by the NJ Senate helps maintain steady solar industry growth and job creation.

Without legislative change, the slower growth of the SREC obligations is likely to disrupt progress in the solar market, cause retraction by solar firms, and force companies to lay off workers, or cause companies to shift investment to other states.  In the end, passing this bill will help maintain the 7,100 solar industry jobs in New Jersey, as well as create many new industry jobs.

SEIA commends our long-time solar champions, Senator Smith for shepherding the bill through committee and for bringing the bill to the floor. We also commend Senator Bateman for his sponsorship of this critical measure.

SEIA looks forward to working with the Assembly sponsors to get the measure to the Governor’s desk for his signature.  The continued growth of the solar industry in New Jersey depends on it.