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New Jersey Solar TREC Program

January 15, 2021 By In Market Updates, News No Comments

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.

 

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Genie Energy Ltd., (NYSE: GNE, GNEPRA) is a global energy solutions company. We supply customers in the US and Europe with electricity, including electricity generated from renewable resources and with natural gas. Through Genie Solar Energy and Prism Solar, we design, construct and install commercial solar energy solutions. We provide commercial and industrial clients with energy brokerage and consultative services through our Diversegy brand.

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Convinced to go solar by the New Jersey incentives, PCS Wireless looked at several solar companies to provide the best overall value. Genie Solar was able to design a unique system to offset the largest portion of their electricity usage. Additionally, we combine it with an exclusive financial product which minimized the cash out of pocket and maximized the return on investment. The 494 kW system was constructed in minimal time, with no impact on the businesses operations.
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A provider of engine-generator systems, Kraft Power was a pioneer of “Total Energy” (Combined Heat and Power). After seeing the financial and green benefits of solar at their headquarters in Massachusetts, Kraft wanted to capitalize on the lucrative state incentives in New Jersey at a distribution center. By installing a 57.5 kW system on the roof they were able to offset 100% of their electricity usage, take advantage of the Investment Tax Credit, accelerated depreciation, and collect revenue from the New Jersey SREC program. Genie Solar made it a smooth process and limited the need for internal resources to manage the project.
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A premier provider of water treatment in the New York and New Jersey area, Tower wanted to go solar to save money and generate clean energy. Upon reviewing the financial benefits available in New Jersey with the SREC program and the federal Investment Tax Credit, they wanted to safe harbor the project in 2019 and construct in 2020. Buying American Made panels was an important component of the project, and by utilizing their white roof, Genie Solar was able to leverage Prism Solar’s bifacial panels to minimize the square footage needed and maximize the electricity generated. Genie Solar helped them achieve all of their goals in an efficient manner with a 44.6 kW system.
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Cardoza had both a showroom and a distribution center with exorbitant electricity costs in New Hampshire. As a legacy business, it was important to reduce costs and protect the business from increasing expenses prior to passing it on to the owner’s children. The show room’s roof and location made it a less than ideal location for solar; but the vast roof and direct sunlight on the distribution center could generate enough solar to power both facilities, plus the owner’s house. Leveraging New Hampshire’s group host program, Genie Solar built one 99.7 kW solar array to power all three locations. The owner is now considering converting more equipment to solar and building a second array.
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A destination nursery in rural New Hampshire, HBTSR was a long standing customer of Genie Solar’s sister company, Diversegy. After helping the business reduce electricity expenses for the past number of years, HBTSR turned to Genie Solar to reduce their rising electricity expenses over the long run. “Between the federal and NH state incentives, I was paid $8,000 to install my solar array. On top of getting money back, I am going to realize over $300,000 in savings during the 25 year warranty period of the solar array.”
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