Posts Tagged ‘Board of Public Utilities’

New Jersey Board of Public Utilities Approves Solar Transition Incentive Program

Posted December 18th, 2019 by SRECTrade.

On Friday, December 6th, the New Jersey Board of Public Utilities (BPU) issued an order approving a new SREC program to aid in the transition from the current SREC program to the yet-to-be-determined “Successor Incentive” program. This “Transition Incentive” program will feature a factorized, fixed-price, 15-year Transition Renewable Energy Certificate (TREC). All projects that submitted complete SREC Registration Program (SRP) applications after October 29, 2018, but do not reach commercial operation at the time the BPU determines the 5.1% target has been reached, will qualify for TRECs.

The BPU will hold a cost-cap proceeding in early 2020 to finalize the annual value of the fixed-price TREC. Specifically, the BPU will evaluate two pricing scenarios: 1) a flat 15-year price of $152 and 2) a lower price of $65 for the first three years followed by a higher price of $189 for the last twelve years.

The different TREC project types and factorizations are displayed below:

TRECs will have a useful life of two energy years, including the energy year in which they were generated. If a TREC is not issued or sold during its two-year useful life, it will become an NJ Class I REC. The order further clarifies that Transition Incentive projects will be eligible to generate NJ Class I RECs after their 15-year TREC Qualification Life.

The BPU order also directs electric distribution companies to procure a TREC Administrator. Although the exact mechanics for how TRECs will be transacted are still being determined, the TREC Administrator will ultimately purchase all generated TRECs and allocate them to load-serving entities for compliance based on their market share of retail sales.

SRECTrade will continue to monitor the development of the final TREC levels and the Successor Incentive program.

NJ BPU Issues Order Effecting 10-Year SREC Eligibility

Posted October 29th, 2018 by SRECTrade.

Earlier today, the New Jersey Board of Public Utilities (BPU) issued an order to clarify that all SREC applications submitted after October 29, 2018 will only receive 10 years of SREC eligibility.

This order means that all New Jersey Office of Clean Energy SREC Registration Program (SRP) applications submitted after 11:59pm ET today will be subject to 10 years of SREC eligibility instead of 15 years.

Please also note that applications received by the BPU for conditional certification pursuant to Subsection T prior to today’s deadline that fulfill all conditions established by the BPU shall receive 15-year SREC eligibility.

Since the May 23rd passage of Assembly Bill 3723 (AB-3723) and Senate Bill 2314 (SB-2314) to increase the state’s Renewable Portfolio Standard (RPS) requirements, there had been some confusion regarding when the effective date took place for the new 10-year eligibility period. Today’s NJ BPU order clarifies that confusion.