Q: What’s a solar renewable energy certificate - II (SREC-II)?
The On Wednesday, July 28th, the New Jersey Board of Public Utilities (BPU) unanimously approved the highly anticipated Successor Solar Incentive Program (“SuSI Program”). The SuSI Program will support the development of 3,750 megawatts (MW) of new solar generation by 2026, effectively doubling the state’s current solar capacity and driving solar to become approximately 10 percent of the state’s total electricity supply.
The New Jersey Transition Incentive (TI) Program closed at midnight on Friday, August 27th. TREC applications will be accepted until that date and will be provided with a 5-business day window to correct minor deficiencies, if required, after their review.
The SuSI program works just like NJ’s previous SREC and TREC programs: the incentive program is production-based, and you earn certificates–called SREC-IIs–for every 1,000 kWh your solar panel system generates for 15 years. But unlike with the original SREC program, the value of a SREC-II is fixed and depends on the type of installation and the size of the system you install – similar to a TREC.
SREC-II’s are sold independently from electricity, so, you will still earn the money you normally would through your utility’s net metering program. SREC-II’s just earn you additional money on top of that.
Different solar system types will receive different incentive values. There are two sub-programs within the SuSI program that solar systems can fall into:
- The Administratively Determined Incentive (ADI) program provides incentives of predetermined value to residential net-metered systems, small non-residential net metered systems, community solar systems, and solar projects that qualify for certain conditional approval.
- The Competitive Solar Incentive (CSI) program is for large commercial and grid supply solar projects, where incentive values are determined through a competitive solicitation process. However, this process has not been finalized.
As a homeowner installing a residential system, you are in the ADI program, and you will earn $90 for each SREC-II your system generates. So, if your system generates 10,000 kWh a year, you will earn $900 on top of your energy savings.