New Jersey Solar Successor Program should adopt hybrid incentive approach, report concludes

Facebook
Twitter
LinkedIn
Reddit
Email
The Pilesgrove Solar Farm, developed in 2011 by Con Edison, is one of the state's forerunners. Image: Panda Funds.

New Jersey should move to a hybrid solar incentive model to better link project support and consumer benefits, a report has concluded.

Such an approach, wherein large-scale projects enter competitive tenders while smaller installs received fixed incentives, should be the central focus of the state’s Solar Successor Program.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The Capstone Report draft, developed by consultants Cadmus Group on behalf of the New Jersey Board of Public Utilities (NJBPU), recommends transitioning away from a competitive “market-style” approach adopted by New Jersey within its Solar Renewable Energy Certificate (SREC) program.

Instead, a hybrid approach should be drawn up which uses competitive solicitation methods for grid-scale projects, but fixed incentives for smaller-sized systems. This would, the report concludes, produce incentives that are more closely linked to the level of support required while saving ratepayers money.

The fixed-incentive programme should be implemented in an “always on” basis and complement net metering incentives in the near term order to provide strong certainty and financeability for projects in this field, however Cadmus has said this could evolve towards more of a total compensation model, which reflects a project’s holistic value to the entire energy system, in the longer term.

Cadmus has also suggested that any successor policy should properly differentiate between project classes, install types, locations and technologies used to ensure a “robust and diverse fleet” of projects is deployed, noting the many moving factors that can impact upon a project’s economics.

The full report can be read here, while two webinars are held to by NJBPU next week – on 17 and 20 August 2020 – to gather stakeholder feedback.

Joseph L. Fiordaliso, president at NJBPU, hailed the collaborative fashion that the state’s solar transition had been conducted, arguing it served as a “true reflection of how important the solar industry is – and will continue to be – to the Garden State.”

“The abundant renewable energy and thousands of jobs created by our solar partners throughout the state are critical to reaching Governor Murphy’s vision of 100 percent clean energy in New Jersey. I’m confident that the rigorous approach we’ve applied, and will continue to apply throughout this process, will provide the best possible outcome for a healthy and vibrant industry to those in the business community while ensuring its affordability for New Jersey consumers,” he said.

8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
17 June 2025
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 17-18 June 2025, will be our fourth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2026 and beyond.

Read Next

June 14, 2024
Ørsted has commissioned its Helena Energy Center in the US state of Texas, a 518MW co-located solar and wind project.
June 14, 2024
US renewable energy project developer Ameren Missouri has acquired a 150MW solar PV project in the state of Illinois.
Premium
June 14, 2024
PV Tech Premium looks at FERC's recent ruling on Order 1920 and how it will affect transmission planning in the future.
June 13, 2024
US solar technology company Swift Solar has secured US$27 million to develop its perovskite tandem solar cell manufacturing.
June 12, 2024
Burns & McDonnell has started construction on Consumers Energy’s 297MWdc/250MWac solar project in the US state of Michigan.
June 12, 2024
US renewables developer Origis Energy has commissioned the 200MW Escalante solar project in New Mexico alongside non-for-profit electricity utility Tri-State Generation and Transmission Association.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 2, 2024
Athens, Greece
Solar Media Events
July 9, 2024
Sands Expo and Convention Centre, Singapore
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia