TRENTON- The NJ Senate Environment and Energy Committee advanced legislation Thursday sponsored by Senator Vin Gopal that would significantly expand New Jersey’s Community Solar Energy Program by setting ambitious new development targets and eliminating outdated capacity caps. The bill aims to reduce energy costs for ratepayers, increase access to renewable energy, and help alleviate supply pressures on the state’s electric grid.
“Community solar has delivered real benefits for working families across New Jersey, but our current limits on project development are holding back its full potential,” said Senator Gopal (D-Monmouth). “This bill modernizes the program to meet today’s needs, cutting red tape, creating savings, and accelerating our clean energy transition. At a time of rising electricity costs, we should be making it easier, not harder, to build local solar projects that lower bills and reduce strain on our grid. This is an opportunity to deliver immediate value to consumers while helping New Jersey meet its clean energy goals. With smart policy and strong investment, community solar can help power our future, affordably and equitably.”
The bill, S4530, would amend the Clean Energy Act of 2018 to direct the Board of Public Utilities (BPU) to register up to 3,000 megawatts (MW) of new community solar projects by August 1, 2025. Registrations would be accepted through December 31, 2029, or until the full 3,000 MW is achieved. The bill also removes the current 150 MW annual cap and authorizes the BPU to adjust incentive levels to ensure project completion.
New Jersey’s Community Solar Energy Program (CSEP) allows residents to subscribe to off-site solar projects and receive utility bill credits. It has already generated over $7 million in net savings for over 28,000 subscribers. However, demand for the program now far exceeds current capacity. As of early 2025, more than 650 MW of projects had registered during the latest cycle, with territories like PSE&G and ACE oversubscribed and closed to new participation.
Community solar projects, typically mid-sized and connected to the local distribution grid, avoid the costly delays of the PJM interconnection queue. According to a recent report by The Brattle Group, installing 3,000 MW of community solar by 2030 would save New Jersey ratepayers an estimated $905 million, roughly $5 per month on an average utility bill by 2031.
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