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Posts Tagged ‘Transition Incentive’

New Jersey Successor Solar Incentive Program Approved

Posted July 30th, 2021 by SRECTrade.

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.

Importantly, the SuSI Program will take effect on August 28, 2021, and contains two sub-programs detailed below. Thus, the New Jersey Transition Incentive (TI) Program will close 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.

  1. The Administratively Determined Incentive (ADI) – a 15-year, fixed-price incentive payment for net-metered solar projects less than or equal to 5 MW in size. This sub-program is inclusive of all residential projects and most commercial and industrial projects, with pricing varying based on project type and size (see table below).
  2. The Competitive Solar Incentive (CSI) – a competitive solicitation for grid supply projects and net metered commercial and industrial projects larger than 5 MW. The first competitive solicitation is projected to launch in early-to-mid 2022.
Incentive levels for the ADI Program, ranging from $70-$120 per SREC-II.

Notably, net-metered residential projects will receive pricing only $1.20/megawatt-hour (MWh) less than their current effective TREC pricing of $91.20/MWh. The incentive value for public entities in each market segment is $20/MWh than their non-public counterparts. Public entities include school districts, municipalities, and public colleges and universities.

SRECTrade will continue to post significant updates on the transition between the current Transition Incentive program and the upcoming SuSI Program as they become available.

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New Jersey TREC Program – Webinar

Posted October 1st, 2020 by SRECTrade.

Earlier today, SRECTrade hosted a webinar for New Jersey Transition Incentive (TI) Program stakeholders. The webinar presented an overview of the TI Program, which features fixed-price, factorized Transition Renewable Energy Credits (TRECs), and also outlined SRECTrade’s services and onboarding process.

For access to the presentation slides, please click HERE. To view a recording of the webinar, please click the image below.

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New Jersey TREC Program Webinar

Posted September 23rd, 2020 by SRECTrade.


SRECTrade, Inc. is hosting a webinar to review the New Jersey Transition Incentive (TI) Program and SRECTrade onboarding process on Thursday, October 1st, at 2:00pm ET. The new program features fixed-price, factorized Transition Renewable Energy Credits (TRECs). SRECTrade is currently accepting NJ TREC facility applications, which can be submitted from your account on the SRECTrade online platform.

To register for the webinar, please click HERE.

Please note that a webinar recording will be made available on the SRECTrade Blog after the webinar.

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New Jersey SREC Program Expected To Close In Late April

Posted April 2nd, 2020 by SRECTrade.

April 6, 2020 EDIT: The BPU ordered the following earlier today:

  • The registration portal for new projects to the SREC Registration Program will be closed on April 30, 2020.
  • Only previously approved Subsection (t.) projects dated prior to October 29, 2019 will be exempt from the market closure on April 30th.
  • Projects must have a PTO granted from an electric distribution company by April 30, 2020 to qualify for inclusion in the legacy SREC program. The post-construction (as built) certification package will be due 90 days after the PTO date (not 90 days after April 30th).
  • The registration portal will be closed on the 91st day after April 30th (July 30th).
  • All extensions granted by Board staff (either 1st or 2nd extensions) will expire on April 30th. Post-construction (as built) certification package due 90 days after April 30th.

On Tuesday, March 31st, the New Jersey Board of Public Utilities (BPU) announced that it forecasts that 5.1% of state electricity sales will be supplied by operational solar projects around or before May 2020. It is therefore expected that the current SREC program (“Legacy Program”) could close to new applications as soon as April 30th.

In order to qualify for the current SREC Program, solar projects 1) need to obtain a Permission to Operate (PTO) by the SREC program closure date (estimated April 30th) and 2) submit their final-as-built application within 90 days from receiving PTO.

Solar systems that receive PTO after the SREC market closure date will be eligible for the new Transition Incentive program (“TREC Program”). Many details regarding the 15-year, fixed-price TREC Program structure have been finalized, including a flat pricing schedule of $152.00 per SREC. However, many important details surrounding the implementation and administration of the TREC Program Administrator have not been finalized yet. As a result, it is expected that TREC approvals and payments will not be made for several months after the program opens.

SRECTrade will continue to monitor the Legacy Program’s closure and the development of both the TREC Program and the eventual Successor Incentive program.

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New Jersey Governor Murphy Signs SB S-4275, Resolving Transition Incentive “Kink Year” Issue

Posted January 22nd, 2020 by SRECTrade.

On Tuesday, January 21st, New Jersey Governor Phil Murphy signed Assembly Bill 6088 (AB-6088) / Senate Bill 4275 (SB-4275) into law in a victory for New Jersey “Transition Incentive” program stakeholders. A New Jersey Board of Public Utilities (BPU) order last month established that the Transition Incentive program’s structure will feature a factorized, fixed-price, 15-year Transition Renewable Energy Certificate (TREC), but did not finalize the pricing schedule that will be used throughout the program.

SB-4275 helps address a “kink year” component in one of the pricing schedule options by allowing the BPU to increase costs to electricity customers in energy years (EY) 2022-2024, such that the average cost to electricity customers from EY2019-2024 does not exceed a 9% cost cap during EY2019-2021 and a 7% cost cap for EY2022-2024. This cost cap flexibility allows the BPU to set higher TREC prices in the near term while still remaining below the legislated cost cap. Prior to this legislation adding flexibility, the BPU had proposed drastically lower TREC pricing during the first three “kink years” of the program, followed by higher pricing in later years.

For example, the two pricing schedules that the BPU had considered are: 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 BPU still has not finalized some key aspects of the TREC program, including the final price levels. SRECTrade will continue to monitor the development of the Transition Incentive program and provide updates.

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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.

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