New Jersey

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New Jersey's SREC market is the largest in the nation. In July 2012, the state passed legislation to pull forward the RPS requirements from the 2014 energy year to account for the substantial amount of solar capacity installed in the state. Facing another influx of supply, NJ is considering making additional changes to its RPS to account for the impending supply-demand imbalance.

For a period of time before January 2011, NJ systems were eligible to apply to the DC SREC market; today, NJ-sited systems are only eligible for participation in the NJ and PA SREC markets.

The NJ Office of Clean Energy issues clients a state certification after the system is officially interconnected with the utility. Once the state certification is provided, clients may complete their SRECTrade.com application, and SRECTrade can complete the registration of the facility in the PJM-GATS tracking registry. NJ is the only SREC state in which the client and/or installation company is responsible for obtaining the state SREC certification. In other states, SRECTrade can complete the certification process for its clients.

Markets for NJ Systems

NJ and PA

Tracking Registry

GATS

Energy Year

June - May

Eligible System Locations

NJ

Market Prices

Solar Requirement

4.10% of the state's electricity usage by 2028.

Meter Readings

Effective November 30, 2012, all solar facilities are required to have a revenue grade meter and must report meter readings in order to produce SRECs.

Eligibility Period

Solar facilities are certified in the NJ SREC market with 15 years of eligibility, beginning with their date of interconnection.

SACP

The Solar Alternative Compliance Payment (SACP) is the penalty price that electricity suppliers must pay per SREC if they fail to file the required number of SRECs by the end of each compliance period.

SREC Useful Life

SRECs from energy generated during or after July 2012 are eligible for 5 years; that is, they can be used for compliance obligations in the energy year in which they are generated and the following 4 reporting years. SRECs from energy generated before July 2012 were eligible for 3 years; that is, in the energy year in which they were generated and the following 2 reporting years.

Market Requirements

NJ SREC market requirements as currently set by state legislation:

Energy Year % Solar Requirement Estimated SRECs Required (MWh) SACP
2014 2.05% 1,568,508 $339
2015 2.45% 1,893,304 $331
2016 2.75% 2,146,389 $323
2017 3.00% 2,364,930 $315
2018 3.20% 2,547,818 $308
2019 3.29% 2,645,670 $300
2020 3.38% 2,745,225 $293
2021 3.47% 2,846,506 $286
2022 3.56% 2,949,538 $279
2023 3.65% 3,054,346 $272
2024 3.74% 3,160,955 $266
2025 3.83% 3,269,391 $260
2026 3.92% 3,379,679 $253
2027 4.01% 3,491,847 $250
2028 4.10% 3,605,920 $239

Source: EIA Report "Retail Sales of Electricity by State by Sector by Provider (EIA-861)" updated 3/23/15. Projected SRECs Required utilizes the most recent EIA electricity data applying an average 1.0% growth rate per forecast year. RPS Solar Requirement is multiplied by forecast total electricity sales to arrive at Projected SRECs Required. Projected Capacity Required is based on a factor of 1,200 MWh generated per MW of installed capacity per year. Projected Capacity Required assumes the amount of capacity needed to be operational all year to meet that year's RPS requirements with only current vintage SRECs.

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