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2021 New Jersey Commercial Solar Incentives – Business RECs

September 22, 2021 By In Market Updates, News No Comments

New Jersey commercial solar incentive are some the country’s top incentives. The state incentives plus the federal tax benefits can provide your company an ROI in year 3. Plus, solar provides long-term stability against rising electricity rates. Maximizing the benefits available are key to making a smart, long-term investment. 

The NJ BPU recently voted to close the TREC program and finalized the new successor REC program for New Jersey.

The NJ commercial solar incentives successor program is an extremely viable program and offers great financial incentives to businesses to go solar in New Jersey. The SuSi REC or SREC program continues to offer fixed incentive values for 15 years – unique among incentives in the US. The values are broken down by the size and type of project. See below for the table provided by the BPU. One of the most notable changes to this program, from the previous TREC program, is the capacity limits. The recommended block, or available capacity for 2022 is only 150 MW of solar for commercial under 5 MW – with EY 22 starting in August of 2021 – and is on a first come-first serve basis. This is subject to budget changes, but customers who wait to late in the year, maybe faced with capacity limits on the program.

A few additional notes:

  1. Cannot co-locate projects to increase incentive values.
  2. Projects over 5 MW fall into a different program.
  3. Projects must be completed within 24 months of SREC-II application.
  4. There are different incentive values for public entities.

Genie Solar Energy is an expert in navigating the various incentives available in the state of NJ. All of these incentives are in addition to the Federal ITC, Bonus Depreciation, and the utility’s avoided cost. Many of our clients are seeing an ROI in year 3 – although with the increasing electricity rates, that is certain to improve.

 

Incentive Values:

Market Segment Size

(Measured in MW)

 Recommended Incentive Value ($/SREC-II) Recommended

Incentive Value for Public Entities ($/SREC-II)
Net Metered Residential All types and sizes $90 N/A
Small Net Metered Non- Residential on Rooftop, Carport, Canopy and Floating Solar Projects smaller than 1 MW $100 $120
Large Net Metered Non- Residential on Rooftop, Carport, Canopy and Floating Solar Projects 1 MW to 5 MW $90 $110
Small Ground Mount Net Metered Non-Residential Projects smaller than 1 MW $85 $105
Large Ground Mount Net Metered Non-Residential Projects 1 MW to 5 MW $80 $100
Community Solar Non-LMI Up to 5 MW $70 N/A
Community Solar LMI Up to 5 MW $90 N/A
Interim Subsection (t)26 All types and sizes $100 N/A

 

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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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