New incentive program reduces the subsidies given to developers and owners of solar arrays in New Jersey
TOM JOHNSON reports for NJ Spotlight
The state has adopted a much-debated plan to help the solar sector transition to a new way of financing solar projects, an overhaul the Murphy administration hopes will rein in costs to utility customers who pay for the program.
The plan, the first step to scrapping a decade-old system of subsidizing solar projects, has met a mixed reception from solar developers who have helped build a robust solar industry in New Jersey. The industry employs about 7,000 people, and homes and businesses have installed a total of 117,893 solar arrays.
But the state Board of Public Utilities’ vote to approve the new program will allow the agency and solar advocates to focus on designing a more permanent program in which the sector can continue to thrive using a less expensive system. Ratepayers have been hit with $2.6 billion in subsidies since the program began about a decade ago.
The new incentive program reduces the subsidies given to developers and owners of solar arrays, as was sought by a law enacted in 2018. It sets up a tiered level of incentives depending on what solar projects are installed — those built on homes; on corporate campuses and businesses; on landfills and brownfield; grid supply projects and community solar facilities.
“Our mission is to achieve 100 percent clean energy by 2050, and we won’t get there without solar power, a critical industry for our state,’’ said BPU President Joseph Fiordaliso. “Ultimately, our aim is to balance ratepayer impacts with ensuring a thriving and stable solar industry.’’
Skepticism among solar advocates
Whether that is achieved provokes skepticism among some solar advocates. Modeling for a new energy master plan for the state projects solar energy will provide up to 34% of the state’s electricity by 2050.
“Our members are in a panic right now,’’ said Lyle Rawlings, founder of Advanced Solar Products in Flemington, referring to the Mid-Atlantic Solar and Storage Industries Association. “They don’t see how they can stay in business.’’
If you liked this post you’ll love our daily newsletter, EnviroPolitics.
It’s packed with the latest news, commentary and legislative updates from New Jersey, Pennsylvania, New York, Delaware…and beyond.
Don’t take our word for it, try it free for an entire month. No obligation.
