NJ SuSI Market Overview

New Jersey

Market Overview

Market Details

The New Jersey Clean Energy Act of 2018 directed the New Jersey Board of Public Utilities (NJBPU) to adopt rules and regulations to close the SREC Registration Program (SRP). The NJBPU has established the Successor Solar Incentive Program (SuSI Program) as the long-term solution.

The SuSI Program includes two sub-programs: the Administratively Determined Incentive (ADI) Program for systems under 5MW DC and the Competitive Solar Incentive (CSI) Program for systems over 5MW DC. Solar facilities that reached permission to operation after August 28, 2021, are to participate in the ADI Program.
ADI (SREC-II) eligible projects can participate in the program for 15 years following the system’s Interconnection approval date. After 15 years, projects may be eligible for a NJ Class I REC

ACP and Market Trend

System Eligibility and SREC-II price offered to SuSI-eligible solar facilities is determined by the project type and classification within the system’s assigned State Certification Number (see table above). Program incentive values are periodically assessed and subject to change at the NJBPU’s discretion. However, the changes will not impact facilities with an existing certification.  The SREC-II incentive level was adjusted for systems submitted to the ADI for Part 1 (pre-installation) approval after March 13, 2023. The most notable change in the pricing affects net metered residential systems changing the pricing from $90/REC to $85/REC.

Retroactivity and Eligibility Start Date

A system’s eligibility to start generating RECs is based on the system’s interconnection approval. However, unclaimed RECs will be forfeit after the proceeding energy year. The NJ energy year is set from June 1 - May 31. 

Example: A facility that is issued interconnection approval 3/10/2022 and is registered on 8/20/2023 can only receive SREC payments back to June 1, 2022.

REC Shelf Life

RECs can only be claimed in the energy generation year or the year thereafter. 

Example: A SREC generated in July 2020 can be counted towards the 2021 or 2022 compliance periods.

Payments

CSG offers a brokerage contract for the term of 15 years. Commission is set at 5% and is withheld from payment. Payments will be remitted quarterly. The SREC-II price offered to SuSI-eligible solar facilities is determined by the project type and classification within the system’s assigned State Certification Number awarded to the solar facility by the New Jersey Clean Energy Program (NJCEP) (see table below).Payments will be issued on a quarterly basis, which shall be due and payable within 45 days after the end of each quarter.

ADI Incentives (NJ-SREC-IIs) Per Market Segment

Frequently Asked Questions

Q: How is the customer's power bill impacted?

A: Your power bill is unaffected by SRECs. SRECs are "Solar Renewable Energy Credits" and they represent the environmental attributes of the power that you produce. You will not see any changes on your utility bill. A: Selling your SRECs has no impact on Net Metering. You can participate in both Net Metering and sell SRECs at the same time. This is because Net Metering has to do with excess energy production, whereby you can receive a credit from your electricity supplier. SRECs are solely the environmental attributes, so if you use all of your production, or put all of it back on the grid for others to consume, it has no impact on your SREC production or ability to sell them. SREC brokering and Net Metering are separate incentive programs that allow solar owners to make back money.

Q: How does this impact Net Metering?

A: Selling your SRECs has no impact on Net Metering. You can participate in both Net Metering and sell SRECs at the same time. This is because Net Metering has to do with excess energy production, whereby you can receive a credit from your electricity supplier. SRECs are solely the environmental attributes, so if you use all of your production, or put all of it back on the grid for others to consume, it has no impact on your SREC production or ability to sell them. SREC brokering and Net Metering are separate incentive programs that allow solar owners to make back money.

Q: What are my obligations?

A: You are not required to sell your SRECs, or participate with Carbon Solutions if you decide to sell. If you do agree to a contract, then you would be agreeing to provide meter readings from your array on a consistent basis for the term of your contract. Online monitoring may satisfy this requirement so that you do not have to constantly send these to us.

Q: Can I choose the NJ Program I participate in?

A: System owners cannot choose which payment program to participate in. Payment eligibility is determined by the State Certification Number awarded to the solar facility by the New Jersey Clean Energy Program (NJCEP). Any facilities issued a TREC-eligible State Certification Number will continue to receive TREC payments for the 15-year program length. Similarly, new facilities issued a SuSI-eligible State Certification Number will continue to receive SREC-II payments for the 15-year program length.

Q: What if I sell my house during the contract term?

A: System owners are required to inform CSG of their move prior to a change of ownership. CSG will provide transfer forms that must be completed by both the existing and new owners in order for the contract to be transferred to the new homeowner. The existing contract holding will receive payments for any RECs generated during their ownership.

Q: How long does this process take?

A: The registration process will begin after a system has been interconnected and the solar owner has signed a REC contract. This process generally takes between 3 - 5 months. Payments will start in the quarter proceeding approved registration and the first REC generation.