New Jersey Approves Solar Successor Incentive Program

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New Jersey BPU Adopts New Incentives for Solar Projects

by: James H. Laskey of Norris McLaughlin P.A. - Employment Law Blog Norris McLaughlin

Friday, July 30, 2021

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At a special meeting held in Trenton on July 28, 2021, the New Jersey Board of Public Utilities (BPU) approved the following incentives under its New Jersey Solar Successor Incentive Program, or “SUSI.” These incentives will take effect in 30 days, at which time the Transition Incentive Program will close to new applications. References to MW below should be understood to mean megawatts of capacity, measured in Direct Current (DC). MWH refers to megawatt-hours of actual energy generated, measured in Alternating Current (AC).

BPU Solar Incentives

Projects described below as competitive procurement will not be able to apply for incentives until 2022, after a new stakeholder proceeding to be led by staff and a just-hired consultant.

Type of Project	Existing Incentive per MWH	Proposed Incentive per MWH
Contaminated or brownfield sites (a/k/a subsection (t))	$152.00	Competitive procurement, except that up to 75 MW may receive an incentive of $90.00
Grid supply rooftop (a/k/a subsection (r))	$152.00	Competitive procurement
Net-metered non-residential rooftop and canopy (1 MW or less)	$152.00	$100.00
Net-metered non-residential rooftop and canopy (5 MW or less, but more than 1 MW)	$152.00	$90.00
Net-metered non-residential rooftop and canopy (more than 5 MW)	$152.00	Competitive procurement
Community Solar	$129.50	$90.00 if Low and Moderate Income. $70.00 otherwise
Grid supply ground-mounted	$91.20	Competitive procurement
Net-metered residential ground-mounted	$91.20	$90.00
Net-metered residential rooftop and canopy	$91.20	$90.00
Net-metered non-residential ground mounted (1 MW or less)	$91.20	$85.00
Net-metered non-residential ground mounted (5 MW or less, but more than 1 MW)	$91.20	$80.00
Net-metered non-residential ground mounted (more than 5 MW)	$91.20	Competitive procurement
Floating solar panels	$91.20	Deferred

New Jersey Solar Successor Program

Net-metered projects for certain public entities will be entitled to an extra $20.00 per MWH, in recognition of the additional costs incurred in connection with public procurement laws.

In short, the changes in incentives are relatively minor except for non-residential rooftop and parking lot canopies, where the change is substantial. Also, grid supply projects and those on brownfield-type sites face tremendous uncertainty.

The BPU also set maximum blocks for projects to be approved for the year that began June 1, 2021, as follows: