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The New Jersey Successor Solar Incentive (SuSI) Program, introduced on July 28, 2021, by the New Jersey Board of Public Utilities (BPU), is a comprehensive initiative aimed at accelerating the adoption of solar energy across the state. With a target of supporting 3,750 megawatts (MW) of new solar generation by 2026, the program is a cornerstone in New Jersey’s strategy to combat climate change and achieve its renewable energy goals. Once completed, the SuSI Program is expected to double the state’s current solar capacity, enabling solar energy to constitute approximately 10% of New Jersey’s total electricity supply.
Transition from Previous Programs
Before the implementation of the SuSI Program, New Jersey incentivized solar adoption through the Solar Renewable Energy Certificate (SREC) and Transition Renewable Energy Certificate (TREC) programs. While these programs were instrumental in fostering early adoption of solar energy, they faced challenges such as fluctuating certificate values and market unpredictability.
The SuSI Program replaces these initiatives with a more structured and transparent framework. The Transition Renewable Energy Certificate program officially ended on August 27, 2021, paving the way for the SuSI Program to introduce fixed-value incentives. This move reflects New Jersey’s commitment to providing long-term stability and encouraging wider participation in solar energy production.
Steps to Go Solar in New Jersey
Understanding SREC-IIs: The Core of the SuSI Program
At the heart of the SuSI Program are Solar Renewable Energy Certificates (SREC-IIs), which reward solar energy producers for their contributions to the state’s renewable energy grid. For every 1,000 kilowatt-hours (kWh) of solar electricity generated, producers earn one SREC-II. This system is in place for 15 years, providing a reliable stream of incentives for solar participants.
Unlike the original SREC program, where the value of certificates fluctuated based on market supply and demand, SREC-IIs have fixed values. The value of each certificate is determined by the type and size of the solar installation, offering greater financial predictability and encouraging investment in a broad range of solar projects, from residential rooftop systems to large-scale commercial installations.
Financial and Environmental Benefits
Dual Revenue Streams
One of the primary benefits of SREC-IIs is their ability to generate additional income beyond the savings from reduced energy bills. Solar energy producers can sell SREC-IIs separately from the electricity they generate, creating dual revenue streams. This financial structure enhances the return on investment for solar energy systems and makes transitioning to renewable energy more appealing to homeowners and businesses.
Contribution to Sustainability
By incentivizing solar energy adoption, the SuSI Program helps reduce greenhouse gas emissions and dependency on fossil fuels. It also aligns with New Jersey’s broader climate goals, including achieving 100% clean energy by 2050. By promoting distributed energy generation, the program contributes to a more resilient and sustainable energy grid.
Fixed Incentives: Encouraging Equitable Participation
A notable feature of the SuSI Program is its fixed-value incentive structure. This approach not only stabilizes the market but also ensures equitable access to solar benefits. Whether a participant is installing a small residential system or a large commercial array, the transparency and predictability of the SREC-II values reduce financial risks and barriers to entry.
The program is designed to cater to a diverse audience, including residential homeowners, commercial property owners, and community solar developers. Community solar projects, in particular, allow renters and individuals without suitable rooftops to benefit from solar energy by subscribing to shared solar farms.
New Jersey’s Key Solar Incentives: A Breakdown
Program Impact and Future Outlook
The SuSI Program is expected to have a transformative impact on New Jersey’s energy landscape. By supporting the development of solar energy projects across various scales, the program aims to create thousands of jobs, stimulate local economies, and contribute to a cleaner environment. Furthermore, the structured incentive model of SREC-IIs ensures that the program remains financially sustainable while achieving its ambitious solar energy targets.
The initiative also places New Jersey at the forefront of state-level renewable energy policies, serving as a model for other states looking to balance environmental goals with economic incentives.
How to Participate
Individuals and businesses interested in participating in the SuSI Program can follow these steps:
- Install a solar system: Work with certified solar installers to set up a qualifying solar energy system.
- Register for SREC-IIs: Submit your system’s details to the state’s solar incentive portal to start earning SREC-IIs.
- Sell your certificates: Partner with brokers or participate in state-approved markets to sell your SREC-IIs and generate additional income.
For community solar projects, individuals can subscribe to a local solar farm and receive credits on their utility bills for their share of the generated electricity.
The New Jersey Successor Solar Incentive (SuSI) Program represents a bold step forward in the state’s journey toward renewable energy adoption. By providing stable, predictable incentives through SREC-IIs, the program addresses the shortcomings of its predecessors while fostering equitable access to clean energy benefits. As the program progresses, it is poised to create a more sustainable, resilient, and inclusive energy future for New Jersey.
