The N.J. Board of Public Utilities took significant steps to expanding in‑state clean energy through solar and battery storage Wednesday by approving three key initiatives, including a massive 3 GW expansion of the state’s Community Solar Energy Program.
Launching the next phase of the CSEP, which targets 3,000 MW (3 GW) of new clean energy capacity while delivering direct bill savings to subscribers, is just one of the ways the BPU will implement the goals of Gov. Mikie Sherrill’s second executive order, the BPU said.
The BPU also:
- Awarded incentives through the Competitive Solar Incentive program to build an additional 24.12 MW of solar capacity, along with opening a new round of CSI applications;
- Awarded incentives through the inaugural tranche of the Garden State Energy Storage Program, supporting projects that will add 355 MW of storage capacity, and establishing a second tranche set to open this spring.
BPU President Christine Guhl-Sadovy said these actions show how the BPU is working to prioritize affordable, reliable and in state electricity resources.
“Solar and storage continue to be the fastest and most cost‑effective ways to get electricity onto the grid,” she said. “Expanding in‑state generation will strengthen reliability and help reduce energy costs for all New Jersey residents.”
The massive expansion of the state’s Community Solar Energy Program is impactful for a number of reasons, including the fact it goes into effect Friday.
Here are more details of the initiative:
Utility territory breakdown: The 3,000 MW block is distributed among the state’s four electric distribution companies, based on their retail electric sales:
- PSE&G: 1,555 MW;
- JCP&L: 778 MW;
- AC Electric: 324 MW;
- Rockland Electric Company: 45 MW.
Landfill carve-out: The BPU reserved 300 MW of the total capacity specifically for projects located on landfills across the state to promote environmental remediation and the repurposing of otherwise unusable land;
Incentive adjustment: The BPU lowered the incentive developers receive for each unit of energy produced. New CSEP registrations will be reduced from $80 per MWh to $60 per MWh. The BPU said staff modeling indicated that increased electricity rates (which raise the value of subscriber bill credits) and the elimination of the competitive tiebreaker justify a lower incentive to protect ratepayers while still targeting a 9.7% internal rate of return for developers.
Registration adjustment: The BPU waived the requirement for an “initial registration period” and a “tiebreaker” mechanism. Projects will now be accepted on a first-ready, first-served basis starting March 6;
Need for speed: The BPU emphasized the importance of allowing mature projects to register immediately so they can begin construction and remain eligible for expiring federal investment tax credits.
Program duration: These capacity blocks will remain open until fully subscribed or until Dec. 31, 2029, whichever occurs first.
Community solar is a way for people to benefit from solar energy without installing panels on their own roof. It allows multiple households, businesses or organizations to subscribe to or own a share of a centralized, off‑site solar farm, and receive credits on their electricity bills based on the energy their portion produces.
Community solar projects have been installed around the state since 2018 — you just may not have seen them. They often are located on rooftops.
Such was the case last summer, when Prologis installed solar panels on top of its 220,000-square-foot distribution center in Perth Amboy.
“The Prologis project — which aims to produce enough electricity to power more than 400 nearby households, a typical way to measure solar impact — was installed by Solar Landscape, the Asbury Park-based company that recently was ranked No. 1 on Solar Power World list of national rooftop commercial solar developers.”
Solar Landscape CEO Shaun Keegan obviously was thrilled by the BPU’s actions.
“The opening of the 3 GW expansion of New Jersey’s Community Solar Program marks a historic milestone for the state’s energy affordability,” he said. “With this expansion, New Jersey has solidified its position as a national leader in community solar, delivering meaningful energy savings to residents while creating new opportunities for commercial property owners.”
Keegan has long said Solar Landscape is eager to help increase solar capacity in the state.
“We congratulate Gov. Sherrill and the New Jersey Board of Public Utilities for prioritizing community solar and advancing a framework that enables the program to scale,” he said. “As the leading provider of commercial rooftop solar in the state, Solar Landscape stands ready to partner with property owners, communities, and utilities to deliver projects that create jobs and provide affordable power to the grid.”
