New Jersey has over 4,700 MW of installed solar power capacity as of January 2024, [1] which provides more than 7% of the state's electricity consumption. [2] The's state's growth of solar power is aided by a renewable portfolio standard that requires that 22.5% of New Jersey's electricity come from renewable resources by 2021 and 50% by 2030, by incentives provided for generation of solar power, and by one of the most favorable net metering standards in the country, allowing customers of any size array to use net metering, although generation may not exceed annual demand. As of 2018, New Jersey has the sixth-largest installed solar capacity of all U.S. states and the largest installed solar capacity of the Northeastern States. [3]
New Jersey has historically been aggressive in installing solar power, at one point being the second largest solar state in the U.S. with 306.1 megawatts of installed solar power in 2011, which was a 131% increase over the 132.4 megawatts installed in 2010. In 2010, New Jersey became the second state, after California, to install over 100 MW in a single year. [4] The New Jersey Board of Public Utilities administers incentive programs that support the development of the state's solar industry. As of January 2024, over 194,000 solar photovoltaic systems have been installed, with 4,765 MW of capacity. [1] Net-metered projects make up 80% of the installed capacity, 191 grid-supply projects make up 17% of capacity, and 102 community solar projects are 3% of capacity. [1]
New Jersey has 696 schools with 212 MW of solar power installed as of the end of 2023, the second most after California. [5]
The former New Jersey Clean Energy Program rebates on PV equipment have been discontinued. [6] [7]
The federal Residential Energy Efficient Property Credit (income tax credit on IRS Form 5695) for residential PV and solar thermal was extended in December 2015 to remain at 30% of system cost (parts and installation) for systems put into service by the end of 2019, then 26% until the end of 2020, and then 22% until the end of 2021. It applies to a taxpayer's principal and/or second residences, but not to a property that is rented out. There is no maximum cap on the credit, and the credit can be applied toward the Alternative Minimum Tax, and any excess credit (greater than that year's tax liability) can be rolled into the following year. [8] [9]
NJ law provides new solar power installations with exemptions from the 6.625% state sales tax, and from any increase in property assessment (local property tax increases), subject to certain registration requirements. [10] [11]
New Jersey's renewable portfolio standard (RPS) is one of the most aggressive in the United States and requires each electricity supplier/provider to provide 22.5% from renewable energy sources by 2021 and 50% by 2030. In addition, 2.12% must come from solar electricity, an amount estimated to be 1,500 megawatts (MW). [12] Solar Renewable Energy Certificates (SRECs) must be purchased by electricity suppliers to meet the state targets or else they face a fine known as a Solar Alternative Compliance Payment (SACP) that was $272/MWh in 2022. [13] As New Jersey was approaching the minimum requirements, the requirements were accelerated on July 23, 2012, changing the shape of the compliance curve from slowly increasing at first to rapidly increasing at first. [12]
In 2004, New Jersey adopted a program promoting the use of Solar Renewable Energy Certificates (SRECs) to meet the solar energy carve-out of the state RPS. In the 2011 Energy Year, 306,000 SRECs (or MWhs of solar electricity) must be purchased by electricity suppliers in the state in order to meet the state solar requirement. That requirement grows to over 5 million in 2026. [14]
An SREC program is an alternative to the feed-in tariff model popular in Europe. The key difference between the two models is the market-based mechanism that drives the value of the SRECs, and therefore the value of the subsidy for solar. In a feed-in tariff model, the government sets the value for the electricity produced by a solar facility. If the level is too high, too much solar power is built and the program is more costly. If the feed-in tariff is set too low, not enough solar power is built and the program is ineffective.
The SREC program allows for the creation of a certificate with every megawatt-hour (MWh) of electricity produced. The certificate represents the solar aspect of the electricity that is produced and can be unbundled and sold separately from the electricity itself. Electricity companies, known as load-serving entities, are required by state RPS laws to procure a certain amount of their electricity from solar. Since it is often more costly for them to build solar farms themselves, the load-serving entities will purchase SRECs from solar generators and use the SRECs to comply with the state laws. With an SREC market, the value of an SREC is determined by supply and demand, subject to certain limitations. If solar is slow to develop, SREC values will remain high, encouraging the development of solar. If too much solar is added, SREC values will decrease, which in turn lowers the attractiveness of the investment. SRECs in New Jersey have traded as high as $680 per MWh. [14] In comparison, the average sale price for the electricity itself ranges from $50 per MWh to $180 per MWh. The value created from the benefits of selling SRECs dwarf the value created by the actual electricity produced in today's market. This means that SRECs play a major role in the return on investment for solar in New Jersey. In 2012 the program was modified in the "solar rescue bill" to increase the value of the SRECs, which have declined in value by 92% but cap them at no more than $325. [15]
The SREC program closed to new registrations in April 2020. [16] A total of 3,335 MW was installed under the SREC program. [1]
The Transition Incentive Program was open to new registrations between October 2019 and August 27, 2021. This program provided fixed incentives called TRECs with different values for different project types. There was no limit to the number of projects that could apply. [17] As of January 2024, 987 MW of projects have been completed under the TI Program. [1]
The Successor Solar Incentive Program opened its Administratively Determined Incentive component on August 28, 2021. This program provides fixes incentives called SREC-IIs to up to 450 MW of small net-metered projects and community solar each year. [18] As of January 2024, 442 MW of projects have been completed under the ADI Program. [1]
The Competitive Solar Incentive component will begin in 2023 and provide SREC-IIs priced as part of a competitive solicitation to 300 MW of grid-supply and large net-metered projects each year. [19] [20]
In 2008, New Jersey and Colorado were the only two states to allow unlimited net metering customers, up to 2 megawatts for each customer. In 2010 the limit was removed, and in 2012 connection may be to a 69 kV or lower line voltage, raising the previous requirements. [12] New Jersey is one of three states which have no limit on an individual project's size, although generation may not exceed annual demand, and the Board of Public Utilities originally had the option of limiting participation to 2.5% of peak demand, [21] but the cap was raised to 2.9% in August 2015, which was seen as a temporary fix that would cover three years. [22] In 2018, the legislature increased the net metering cap to 5.8% of retail sales. [23]
New Jersey's subsection (t) program, established in the Solar Act of 2012, has allowed for the redevelopment of numerous landfill and brownfield sites into solar arrays. [24] The Mount Olive Solar Farm, located on a former Superfund site, is the largest solar project on a landfill in North America and was completed in November 2022. [25] [26] As of April 2023, there are 37 projects with 290 MW of capacity built on closed and repurposed landfills and brownfields. [1] Seventeen projects with 187 MW are on Superfund sites, the most of any state. [27]
In 2009, Public Service Enterprise Group, the largest utility company in New Jersey, announced plans to install solar panels on 200,000 utility poles in its service area, the largest such project in the world. [28] [29] In addition to the 38 MW of pole-mounted power, [30] PSEG's Solar 4 All project built at least 34 solar projects with 152 MW. [31] [32] [33]
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Year | Total | % of NJ total | % of US solar | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2009 | 11 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 1 | 1 | 0 | ||
2010 | 21 | <0.1% | 1.7% | 0 | 1 | 1 | 2 | 3 | 3 | 3 | 3 | 2 | 1 | 1 | 1 |
2011 | 69 | 0.1% | 7% | 1 | 3 | 4 | 6 | 7 | 9 | 8 | 8 | 6 | 7 | 4 | 6 |
2012 | 305 | 0.5% | 7% | 17 | 21 | 26 | 32 | 27 | 33 | 32 | 31 | 28 | 21 | 22 | 15 |
2013 | 438 | 0.7% | 4.8% | 22 | 23 | 35 | 49 | 44 | 46 | 44 | 38 | 43 | 41 | 31 | 22 |
2014 | 514 | 0.75% | 2.9% | 22 | 31 | 43 | 53 | 52 | 56 | 59 | 58 | 49 | 36 | 33 | 22 |
2015 | 628 | 0.8% | 2.5% | 34 | 38 | 49 | 63 | 71 | 60 | 67 | 72 | 61 | 53 | 38 | 22 |
2016 | 835 | 1.08% | 2.3% | 51 | 45 | 73 | 82 | 74 | 94 | 90 | 88 | 66 | 67 | 61 | 44 |
2017 | 924 | 1.22% | 1.74% | 34 | 63 | 81 | 85 | 91 | 108 | 106 | 107 | 91 | 58 | 60 | 40 |
2018 | 992 | 1.72% | 1.94% | 57 | 54 | 89 | 89 | 104 | 117 | 124 | 110 | 74 | 69 | 54 | 51 |
2019 | 1,165 | 63 | 75 | 106 | 101 | 110 | 126 | 142 | 127 | 111 | 80 | 76 | 48 | ||
2020 | 1,592 | 83 | 98 | 121 | 148 | 172 | 169 | 186 | 162 | 136 | 126 | 104 | 87 | ||
2021 | 1,203 | 89 | 93 | 142 | 164 | 185 | 179 | 173 | 178 |
Beginning with the 2014 data year, the Energy Information Administration has estimated distributed solar photovoltaic generation and distributed solar photovoltaic capacity. These non-utility scale estimates project that New Jersey generated the following additional solar energy:
Year | Summer capacity (MW) | Generation (GWh) |
---|---|---|
2014 | 1,106 | |
2015 | 1,026.4 | 1,435 |
2016 | 1,058.2 | 1,385 |
2017 | 1,285.6 | 1,660 |
2018 | 1,490.9 | 1,927 |
As of September 2024, New Jersey has more than 90 photovoltaic installations of over 5 MW, which have a cumulative capacity of over 850 MW, and over 560 projects of over 1 MW, with a cumulative utility-scale capacity of 1,825 MW. [43] Small-scale capacity is 3,131 MW. Most of these are net-metered. The largest in the state include (incomplete list; selected projects): [43]
Name | Location | Capacity (MWdc) | Commissioned | Notes |
---|---|---|---|---|
Ben Moreell Solar Farm, Naval Weapons Station Earle [44] | Tinton Falls | 28.5 | 2015 | Superfund site [45] |
Toms River Merchant Solar | Toms River | 27.3 | 2021 | Landfill/brownfield and Superfund site |
Mount Olive – Combe Fill North Landfill | Mount Olive Township | 25.6 | 2023 | Landfill/brownfield and Superfund site [46] [47] |
Six Flags Solar | Jackson Township | 23.5 | 2019 | Net metered, ground mount and carport |
DSM Solar | Belvidere | 20.2 | 2019 | Net metered (three projects on site) [48] |
Tinton Falls Solar Farm | Tinton Falls | 19.9 | 2012 | Landfill/brownfield site |
Pilesgrove Solar Farm | Pilesgrove Township | 19.9 | 2011 | |
Fort Dix Landfill | Lakehurst | 16.5 | 2017 | Landfill/brownfield and Superfund site |
Vinland Construction Co. | Pennsauken Township | 15.1 | 2019 | Landfill/brownfield site |
McGraw-Hill Companies | East Windsor | 14.1 | 2012 | [49] |
Berry Plastics | Phillipsburg | 13.1 | 2013 | Net metered |
SC Holdings | Cinnaminson | 13.0 | 2019 | Landfill/brownfield and Superfund site |
New Jersey Oak Solar | Fairfield Township | 12.5 | 2012 | [50] |
Monroe Solar Farm | Monroe Township | 12.0 | 2020 | Landfill/brownfield site |
Seashore Solar | Egg Harbor Township | 10.6 | 2016 | Landfill/brownfield site |
Holt Logistics Gloucester Terminal | Gloucester City | 10.1 | 2012 | Net metered, largest rooftop solar project in the US when completed (9 MW), 1.1 MW added in 2018 [51] |
Frenchtown Solar III | Kingwood Township | 10.0 | 2013 |
New Jersey also has the Americas' largest floating solar array, an 8.9 MW project at New Jersey American Water's treatment plant in Millburn that was completed in 2022. [52] [53] The 4.4 MW system in Sayreville was the largest in the country when it was built in 2020. [54] A 3.3 MW project at a sand company puts the state's installed floating solar capacity at 16.6 MW, greater than the rest of North America combined. [55]
Renewable Energy Certificates (RECs), also known as Green tags, Renewable Energy Credits, Renewable Electricity Certificates, or Tradable Renewable Certificates (TRCs), are tradable, non-tangible energy certificates in the United States that represent proof that 1 megawatt-hour (MWh) of electricity was generated from an eligible renewable energy resource and was fed into the grid. Solar renewable energy certificates (SRECs) are RECs that are specifically generated by solar energy.
Wind power is a branch of the energy industry that has expanded quickly in the United States over the last several years. In 2023, 421.1 terawatt-hours were generated by wind power, or 10.07% of electricity in the United States. The average wind turbine generates enough electricity in 46 minutes to power the average American home for one month. In 2019, wind power surpassed hydroelectric power as the largest renewable energy source in the U.S. The federal government and many state governments have policies that guide and support the development of the industry, including tax credits and renewable portfolio standards.
According to data from the US Energy Information Administration, renewable energy accounted for 8.4% of total primary energy production and 21% of total utility-scale electricity generation in the United States in 2022.
Financial incentives for photovoltaics are incentives offered to electricity consumers to install and operate solar-electric generating systems, also known as photovoltaics (PV).
A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies by offering long-term contracts to renewable energy producers. This means promising renewable energy producers an above-market price and providing price certainty and long-term contracts that help finance renewable energy investments. Typically, FITs award different prices to different sources of renewable energy in order to encourage the development of one technology over another. For example, technologies such as wind power and solar PV are awarded a higher price per kWh than tidal power. FITs often include a "digression": a gradual decrease of the price or tariff in order to follow and encourage technological cost reductions.
Solar power includes solar farms as well as local distributed generation, mostly on rooftops and increasingly from community solar arrays. In 2023, utility-scale solar power generated 164.5 terawatt-hours (TWh), or 3.9% of electricity in the United States. Total solar generation that year, including estimated small-scale photovoltaic generation, was 238 TWh.
Solar power has been growing rapidly in the U.S. state of California because of high insolation, community support, declining solar costs, and a renewable portfolio standard which requires that 60% of California's electricity come from renewable resources by 2030, with 100% by 2045. Much of this is expected to come from solar power via photovoltaic facilities or concentrated solar power facilities.
Solar Renewable Energy Certificates (SRECs) or Solar Renewable Energy Credits, are a form of Renewable Energy Certificate or "green tag" existing in the United States of America. SRECs exist in states that have Renewable Portfolio Standard (RPS) legislation with specific requirements for solar energy, usually referred to as a "solar carve-out". The additional income received from selling SRECs increases the financial value of a solar investment and assists with the financing of solar technology. In conjunction with state and federal incentives, solar system owners can recover their investment in solar by selling their SRECs through spot market sales or long-term sales, both described below.
The energy sector in Hawaii has rapidly adopted solar power due to the high costs of electricity, and good solar resources, and has one of the highest per capita rates of solar power in the United States. Hawaii's imported energy costs, mostly for imported petroleum and coal, are three to four times higher than the mainland, so Hawaii has motivation to become one of the highest users of solar energy. Hawaii was the first state in the United States to reach grid parity for photovoltaics. Its tropical location provides abundant ambient energy.
Wind power in Indiana was limited to a few small water-pumping windmills on farms until 2008 with construction of Indiana's first utility-scale wind power facility, Goodland with a nameplate capacity of 130 MW. As of March of 2024, Indiana had a total of 2,743 MW of wind power capacity installed, ranking it 12th among U.S. states. Wind power was responsible for 4.8% of in-state electricity production in 2016.
Solar power has been growing in the U.S. state of Oregon in recent years due to new technological improvements and a variety of regulatory actions and financial incentives enacted by the state government.
A community solar project, farm or garden is a solar power installation that accepts capital from and provides output credit and tax benefits to multiple customers, including individuals, businesses, nonprofits, and other investors. Participants typically invest in or subscribe to a certain kW capacity or kWh generation of remote electrical production. The project's power output is credited to investors or subscribers in proportion to their investment, with adjustments to reflect ongoing changes in capacity, technology, costs and electricity rates. Community solar provides direct access to the renewable energy to customers who cannot install it themselves. Companies, cooperatives, governments or non-profits operate the systems.
Solar power in Mexico has the potential to produce vast amounts of energy. 70% of the country has an insolation of greater than 4.5 kWh/m2/day. Using 15% efficient photovoltaics, a square 25 km (16 mi) on each side in the state of Chihuahua or the Sonoran Desert could supply all of Mexico's electricity.
Solar power in Massachusetts has been increasing rapidly, due to Section 1603 grants for installations that began before December 31, 2011, and the sale of SRECs for $0.30/kWh, which allows payback for the system within 5 or 6 years, and generates income for the life of the system. For systems installed after December 31, 2011, and before December 31, 2016, the 30% tax grant becomes a 30% tax credit. There has been an appeal to the Congress to extend the 1603 program, the grant program, for an additional year.
Solar power in South Africa includes photovoltaics (PV) as well as concentrated solar power (CSP). As of July 2024, South Africa had 2,287 MW of installed utility-scale PV solar power capacity in its grid, in addition to 5,791 MW of rooftop solar and 500 MW of CSP. Installed capacity is expected to reach 8,400 MW by 2030.
New York has a renewable portfolio standard of 30% from renewable sources by 2015. In 2015 24% was renewable, 6% short of the goal. Wind is the predominant generating technology. In 2018, the New York State Energy Research and Development Authority awarded long-term contracts to 22 utility-scale solar farms, totaling a combined capacity of 646 MW.
Solar power in Georgia on rooftops can provide 31% of all electricity used in Georgia.
Solar power in Maryland is supported by the state's legislation regarding the Renewable Portfolio Standard and Solar Renewable Energy Credit (SREC) program. The target for renewable energy as of 2017 is 20% by 2020, including 2% from solar power.
Solar power in Pennsylvania currently provides less than 1% of the state's electricity, but there are many policies in place to regulate and incentivize its use. Pennsylvania mandates the use of solar power through a renewable portfolio standard, which requires a percentage of electricity from each providers to come from solar, and net metering, which compensates small-scale solar generation through net metering. By 2021, Pennsylvania was required to have 0.5% of its electricity from solar. Their following goal is 10% by 2030. Solar power could theoretically provide over 30% of the state's electricity, but growth in solar generation has slowed due to a reduction in solar grants and the low price of solar energy credits. Efforts have also seen blowback from citizens, most notably from Mount Joy Township. Although, Pennsylvania has ruled solar as a legal use, meaning local governments can only restrict size and placement, but can't disband the projects.