New Jersey Highlights Success of Solar Market

12/28/2006

Green Power Newsletter
December 2006


More than 60 leading solar market participants and community representatives gathered at Monmouth University in Long Branch, New Jersey to celebrate the installation of one of the largest solar systems on the east coast and to discuss the future of New Jersey’s solar market. The Monmouth University 454 kW solar installation is now one of over 1840 solar installations across the Garden State.


The BPU announced third quarter 2006 results for the growth of New Jersey’s solar market at the event. The reported numbers show that New Jersey has more than doubled its solar capacity in the first nine months of 2006, with more than 1,840 solar electric systems across the State and over 26 MW of installed solar capacity. The rapid growth in solar installations across the Garden State is due to New Jersey’s Solar Financing Model which effectively helps drive investment in solar technologies by combining state financial incentives with net metering benefits, electric cost savings, federal tax credits and clean energy credits.


"The rate at which this market is growing is absolutely incredible and we are consistently impressed with the efforts of the solar industry and community leaders like Monmouth University who have been instrumental in growing this market," said NJBPU president Jeanne M. Fox. "However, New Jersey's solar financing model is integral to our shared success and will be even more critical to our ability to continue this level of growth and our position as a national solar market leader."


Based on its financing model, New Jersey has reduced the payback period for solar installation down to ten years or less. Both business and residential customers have taken advantage of state’s Customer Onsite Renewable Energy (CORE) rebates, which reduce the upfront costs for the installation of renewable energy technologies including solar, wind and biomass by as much as fifty percent.


During the first nine months in 2006, New Jersey reports more than $46 million dollars in rebates to NJ ratepayers for the installation of over 10 MW of solar photovoltaics. An additional $56 million in CORE rebate commitments were made available by the Board in September bringing the final 2006 budget for the rebate program to $147 million. The Office of Clean Energy estimates that an additional 200 installations representing an additional 5 MW of solar capacity will be completed within the fourth quarter. In comparison, New Jersey installed a total of 9.9 MW of solar capacity from 2001 through 2005, representing a total of $43.9 million in rebates.


Third quarter reports reflect the impact of New Jersey’s Solar Financing Model, which relies on solar rebates complemented by the state’s progressive, performance-based net metering rules and Renewable Energy Certificate (REC) programs. This integrated approach to financing and the use of RECs has been critical to New Jersey and its ability to drive growth and meet its clean energy goals. The state plans to continue to transition away from reliance on rebates towards REC-based financing in order to sustain growth in the market and meet its clean energy goals which call for an estimated 1,500 MW of solar capacity by the year 2020. To reach this goal New Jersey will need to install an estimated 110 MW of solar capacity each year.