Believe it or not, solar renewable energy certificates are among some of the best solar incentives in New Jersey. At 15.78¢/kWh, electricity rates are 32.83% higher than the national average which makes the Garden State one of the top viable states in the nation for homeowners to go solar. Continue below to learn about the nation’s most competitive SREC market.
Renewable Portfolio Standard in New Jersey
According to the Solar Energy Industries Association, a renewable energy standard or renewable portfolio standard (RPS) requires utility companies to source a certain amount of energy they generate or sell from renewable sources such as wind and solar. Currently, there are 38 states that have renewable portfolio standards in place and some ambitious target goals to reach by a target date. The state of New Jersey is known for the third-most ambitious renewable portfolio standard just trailing behind California and New York. The state must generate 5.1% of its energy from solar energy by 2021. In as little as 9 years, the state must generate 50% of its energy from renewable sources by 2030.
What are SRECs?
Solar Renewable Energy Certificates or SRECs are solar incentives available in a small number of states with a Renewable Portfolio Standard. As mentioned above, states with an RPS must source a certain amount of energy from renewables. If this is not reached, utility companies will purchase SRECs from homeowners for every megawatt-hour (MWh) of electricity that is generated. In New Jersey, homeowners are able to access 6 SRECs a year for 10 years at an average rate of $200 per SREC. Let’s take a look at how much homeowners can potentially earn with SRECs:
$200 x 6 SRECs = $1,200/year
$1,200 x 10 years = $12,000 in 10 years!
How do New Jersey SRECs work?
Homeowners earn a single SREC for every MWh of electricity generated. Depending on the time of registration, homeowners can begin receiving SRECs for every MWh of electricity generated for the first 10 or 15 years of installation. Homeowners must register with the Generation Attribute Tracking System (GATS) to begin selling their SRECs in a competitive market just like one would trade stocks on the stock market. As we mentioned above, utility companies are the buyers of SRECs. When utility companies do not meet the state’s RPS, they must pay a Solar Alternative Compliance Payment (SACP), a penalty price that they must pay per SREC.
If you’re a homeowner in New Jersey, you’re in luck. While electricity rates average around 15.78¢/kWh, 32.83% higher than the national average, there are competitive incentives available for homeowners to consider solar to lower their electric bills. As we have mentioned in this video, with the state’s RPS goals, New Jersey is practically rewarding homeowners when they make the switch as they reach closer to their goals. Ready to see how much solar panels cost in your area? Visit the Solar.com online marketplace to receive competitive solar quotes today and learn how you can lower your electric bills and the available incentives in your state!
The California Solar Mandate: Everything You Need to Know
Many states are paving the way towards a cleaner, emissions-free, and sustainable future. They are actively addressing climate change and innovating new solutions to fit...
What is California's Solar Bill of Rights? Here's Everything You Need to...
California state leaders keep proving again and again that the Golden State is the best state for solar and clean energy innovation. First, state regulators required...
Massachusetts SMART Solar Program: Complete Overview of New Incentive
Massachusetts’ extremely successful Solar Renewable Energy Credit (SREC) II Program closed, but this doesn’t mark the end of the state’s commitment to clean energy. The...
BREAKING: California Governor Signs SB100 for 100% Renewable Power by 2045
California legislators are making strides in fulfilling their commitment to electricity generated from zero-carbon sources. The new deadline? 2045. After Governor Brown’s signature today, Senator...
Mayor Garcetti and LADWP Launch New Attic Insulation Incentive
There’s no question that Los Angeles is heating up. Increasingly frequent heat waves, wildfires, and power outages throughout the greater Los Angeles area have put excess...
LADWP Solar Incentive Program Ends Beginning of 2019
Solar.com’s office building, the La Kretz Innovation Campus, is in fact owned by the Los Angeles Department of Water and Power. It’s exciting for us...
Solar Tariffs Update 2018: Protecting American Solar Jobs Act
You probably heard about the solar tariffs when they made headlines earlier this year. There’s a new update worth mentioning. The Protecting American Solar...
New York City's Solar Property Tax Abatement Ends Soon
UPDATE: On November 5, 2018, the New York Governor Andrew Cuomo signed Assembly Bill A10150 and extended the New York City Property Tax Abatement two...
Con Edison’s Megawatt Block Incentive is Lowering Soon
Since 2014, Con Edison has given its customers in New York access to NY-Sun’s Megawatt Block Incentive, which gives solar panel owners a rebate based...
LADWP wants to encourage Angelenos to choose clean energy. Solar energy contributes to a healthier city and supports the burgeoning local solar industry. If you...
Free Home Energy Improvements from Los Angeles DWP
The Los Angeles Department of Water and Power will work with eligible customers to upgrade their home electricity and water efficiency for free. Does it...
As the federal government has shied away from confronting climate change, the responsibility is starting to fall on the individual states and their own climate...
Washington State recently announced major changes to their solar incentive programs that will go into effect this October. While some incentives have been discontinued, new...
UPDATE: For our latest article on Washington incentives, please visit here. Amidst newly announced incentive programs, solar in Washington is hot right now. I know...
Thanks to its progressive policies, New York ranked tenth in the country for cumulative solar installed last year. In 2016, Governor Andrew Cuomo’s Clean Energy...
It's Time to Consider Going Solar in Washington D.C.
DC has become one of the most attractive areas to go solar. Here’s why: Washington DC has experienced a sustained SREC (Solar Renewable Energy Credit)...
The North Carolina Clean Energy Technology Center just released its comprehensive The 50 States of Solar: Q1 2017 Quarterly Report. It provides a detailed look...
LA County's New, Cheaper Energy Option for SoCal Edison Customers
Southern California Edison (SCE) ratepayers in Los Angeles County soon will have a different method of getting electricity — from a new government-executed energy utility...
Minnesota's Solar Incentives and Benefits Are Better Than Ever
Minnesota has historically relied on unstable fossil fuels for electricity. However, as concerns over localized pollution and climate change have risen in the land of...
The Nuts and Bolts of California's Self Generation Incentive Program
California is taking a bold step toward solar energy self-consumption. On May 1st, California will accept applications for a limited time rebate program that rewards...
If you are a homeowner anywhere in Washington state, you are sitting on an untapped goldmine of opportunity. You’ll be happy to hear that Washington...
The future looks bright for going solar in Rhode Island. The State’s Renewable Energy Fund (REF) is incentivizing solar energy investments throughout the State through...
Time of Use Rate Impact on Residential Electricity Costs: A Southern California...
Southern California Edison (SCE), one of California’s three biggest investor-owned utilities, has created optional Time of Use rate schedules for residential customers. The new schedules...
NYC Solar Incentives and Property Tax Abatement for Solar Photovoltaics
New York state government passed legislation allowing for a property tax abatement on solar PV equipment expenditures. Enacted in 2008, the legislation dictates that buildings...
There’s no sugarcoating what happened in Nevada late last year. State regulators slashed rates for supplying solar energy to the grid, rates that homeowners expect...
This afternoon, the California Public Utilities Commission (CPUC) released an updated proposed decision on Net Energy Metering (NEM) 2.0. Here are the key takeaways from...
While there are federal rebate programs available across the United States to help finance a solar panel system, each state also has its own programs....
