2021 New Jersey Commercial Solar Incentives – Business RECs
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:
- Cannot co-locate projects to increase incentive values.
- Projects over 5 MW fall into a different program.
- Projects must be completed within 24 months of SREC-II application.
- 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.
|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|