NJ TREC: Time Is Running Out For Best State Incentive
Business owners have many financial incentives available to make going solar financially enticing. On a federal level there are two incentives: the Investment Tax Credit (ITC) and accelerated depreciation through MARCS. In addition, there are often incentives within various states. Currently, the State of New Jersey offers the highest solar incentive available in the country.
New Jersey’s Renewable Portfolio Standard (RPS) seeks to increase the state’s electricity sourced from renewable sources to 50% by 2030. By requiring utility companies and energy suppliers to purchase renewable energy, NJ is driving market deployment through programs like the Renewable Energy Certificates (REC). One of the ways energy suppliers can meet the RPS requirements is to purchase a REC.
Currently, NJ new projects built in the state leverage the TREC program (Transitional Renewable Energy Certificates). The TRECs are exchanged for a flat, predetermined fee of $152 per every 1,000 kWh produced for 15 years after the system is built.
For an average commercial customer, producing around 700,000 kWh/ year this can translate into an additional $1.5 MILLION in value – not to mention the federal incentives and energy cost savings.
However, this program is temporary while they redesign the incentive program. As a transitional program, TRECs are only meant as a stopgap until the more permanent program is announced. Once the new program is announced, it is likely that going solar will not be as lucrative.
When will it expire? Currently, there is no set expiration date. However, as a transitional program, it is very likely it will happen with the first quarter of the year.
What’s needed to lock in the TREC program? Once we have a signed contract, the TREC application is the very first thing our administrative staff does.
Contact us at https://geniesolarenergy.com/get-started/ today for a free quote to see how it PAYS to go solar.