Op-Ed: Here comes the sun for less than you thought it would cost even with today’s low gas prices

With the cost of renewable energy sources continuing to decline, New Jersey will benefit — but it needs to get a couple of things right first

Barbara Blumenthal

Barbara Blumenthal
Plummeting costs for solar and onshore wind power are changing America’s energy landscape and accelerating the shift away from dirty fossil fuels.
In states as diverse as Iowa, Texas, Minnesota, and Arizona, competitive bids show that renewables can beat the costs of new natural gas plants in many places, even with today’s low gas prices. As the costs of renewables continue to decline, market forces will drive the replacement of coal and natural gas with safe, clean, affordable energy across much of the country.
These underlying cost trends explain why New Jersey will benefit from the clean energy law Gov. Phil Murphy signed last year, which requires quickly ramping up our renewable requirement to reach 50 percent in 2030.
Two factors are needed to achieve New Jersey’s low-cost clean energy future: a new planning framework that identifies the right mix of energy resources to dramatically reduce emissions at the lowest cost for New Jersey; and cost-effective programs to attract those resources.
Regulators are already taking a critical step to improve New Jersey’s approach to solar incentives for new solar projects. The state Board of Public Utilities has undertaken a year-long process to determine how to close the existing incentive program to new projects and replace it with a new, more cost-effective set of incentives, as is required under the Clean Energy Law. Soon, consumers will get much more solar built in New Jersey for every dollar spent.

Must fix existing solar program

Though New Jersey ranks fifth in the nation for installed solar capacity, the state’s existing solar program — based on tradeable credits called SRECs — has several major flaws.
First, it provides a single price for all projects. Solar installations built years ago, when costs were much higher, get the same price as projects built today at substantially lower costs. Under the current program, all projects receive SRECs that sell today for $220 each — whether they need to be that high or not.
Second, SREC market prices have been highly volatile, so investors and lenders have required a significant risk premium to finance projects. New Jersey consumers have been paying that premium, buried in their utility bills.
Even after the current SREC program closes, consumers will continue to pay for SRECs generated from each project for up to 15 years. These SRECs will continue to trade at volatile market prices which can range from a legislated maximum price (set at $268 for 2019) to a low of perhaps $10. This price risk can only become more extreme, for both customers and existing solar projects, once the SREC program is closed to new solar projects. Imagine a competitive market that bans new entrants no matter how high the price gets.

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Stormwater utilities bill signed into law in New Jersey


By Frank Brill, EnviroPolitics Editor


Legislation that will allow counties and municipalities in New Jersey to establish stormwater utilities and management policies was signed into law today by Governor Phil Murphy.


“The lack of regulation and management of stormwater has caused extensive problems for New Jersey,” said John McKeon (D-Essex, Morris), who sponsored the Assembly version of the legislation with colleagues Nancy Pinkin (D-Middlesex) and Cleopatra Tucker (D-Essex). The Senate version was sponsored by Bob Smith (D-Middlesex), Kip Bateman (R-Somerset), Dick Codey (R-Essex) and Linda Greenstein (D-Mercer).   


“Rainwater run-off carries with it debris, bacteria, and chemicals which can lead to pollution of our waters and drinking water sources. Without regulation, we will continue to see a rise in pollution, flooding and property damage. This law enables towns and counties to take the next step in stemming the problems caused by stormwater,” McKeon said.


The legislation was supported by a wide number of environmental organizations like the Sierra Club, Clean Water Action and New Jersey Future. 


It was opposed by business groups representing members with large properties that would be subject to fees to operate the stormwater utilities.


While the legislation was moving through both houses,  Dennis Hart, executive director of the Chemistry Council of New Jersey, testified that his members are bearing a heavy tax burden that makes them less competitive with manufacturers in other states and they also are paying to maintain on-site stormwater management programs required by the NJDEP.  


In response, the bill was amended in the Assembly to provide a partial fee reduction in the form of a credit “for any property that maintains and operates a stormwater management system that complies with the State and local stormwater management standards that were in place at the time the system was approved.”   
Republicans are fighting similar legislation in other states and they pounced on the New Jersey bill, labeling it a ‘rain tax.’ 
Stormwater utilities exist in more than 40 states and the District of Columbia. 


The legislation is voluntary so the political fight will now move to the local level where environmentalists will press counties and municipalities to create the utilities, while affected businesses likely will argue against it.


Related: Local stormwater utility bill approved in NJ Senate


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Monmouth U. Welcomes World-Renowned Climate Change Experts for Symposium April 17-18

[News release]

WEST LONG BRANCH – Leading experts from around the world in the areas of climate change adaptation law and science will assemble at Monmouth University on April 17-18 for the Climate, Coasts & Communities Symposium.

With the “new normal” of increased storm events, flooding, sea level rise and coastal erosion being caused by climate change, the event will focus on lessons from other states and abroad that can help New Jersey navigate the challenges. Discussion topics will include climate change impacts to voiceless communities, including future generations, wildlife and natural resources; the public health dimensions of coastal adaptation; and scientific strategies to combat climate change-induced factors that are harming marine and coastal ecosystems.

Keynote speakers include Global Ocean Forum President Biliana Cicin-Sain, University of Tasmania Faculty of Law Professor Jan McDonald and University of Utah S.J. Quinney College of Law Professor Robin Craig. The two-day symposium will kick off with a panel of Monmouth University students presenting their research on issues including the transfer of development rights and easements to improve coastal resilience and the threats extreme weather events pose to water supplies.

For registration and more information, visit monmouth.edu/climate-coasts-communities or contact Professor Randall Abate at rabate@monmouth.edu. The event is free for Monmouth University students and employees (registration required), $35 for members of the public and $25 for Monmouth alumni and non-Monmouth students. The admission cost covers an opening night reception, Thursday continental breakfast and lunch, and refreshments.

The event is being hosted by Monmouth University’s Urban Coast Institute, Wayne D. McMurray School of Humanities and Social Sciences, School of Science, Office of the Provost, Global Education Office, Department of Political Science and Sociology, and Youth Activists Group.

**See more like this on our Enviro-Events Calendar**  

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NJ counties with the highest and lowest property taxes

By Samantha Marcus | NJ Advance Media for NJ.com
New Jersey’s average property tax bill was $8,767 last year, but that can vary a whole lot depending on which county you call home.
For the first time, homeowners in one county paid more than $12,000 on average for property taxes. Five counties topped $10,000.
Meanwhile, the average tax bills in three counties were below $6,000.
See where your county falls as we rank them from lowest to highest:

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Connecticut’s solar panel industry presses for change in state law it sees as threat to its existence

Connecticut’s solar panel industry presses for change in state law it sees as threat to its existence

Panels are placed on a solar
array installed on the roof of a Bristol church in this April 2018 file photo.
The solar industry is lobbying to change a law that governs how residential
users generate solar power. (John Woike)By STEPHEN SINGER | HARTFORD COURANT Connecticut’s solar industry and environmental advocates are fiercely lobbying state lawmakers to reverse or at least delay action they took last year changing how consumers are compensated for solar energy generated from rooftop panels.About three dozen workers in the industry that installs solar panels gathered Wednesday at the Capitol, urging legislation they say will save industry jobs in Connecticut, estimated at more than 2,000. The legislature’s clean energy caucus said the state’s solar industry faces an “existential crisis.”Tim Schneider, co-owner of Earthlight Technologies, an Ellington installer of solar panels that employs 69 workers, said if changes are not made to last year’s law, “I’ll be laying off half my crew.”The 2018 law schedules the termination later this year of net metering, a way residential users are credited for solar energy for electricity they add to the grid.Like this? Click to receive free updatesEnding net metering “takes the financial incentive off the table,” said Michael Trahan, executive director of Solar Connecticut Inc., the industry trade group.In its place would be a system of tariffs, or charges applied by energy providers to customers for electricity use. Connecticut’s solar industry, environmental advocates and others say tariffs work in states where solar energy accounts for 10 percent or more of electricity.In Connecticut, it’s about 2 percent, Trahan said.Stephen Lewis of South Windsor told state lawmakers in written testimony for a recent public hearing that he would not have installed home rooftop solar panels in 2017 without net metering.“I use my home solar to pay for my already efficient home electric use, to charge my EV for a daily commute and have now charged 17,000 all electric miles, and to help pay for my home heat pump so I do not need to use as much home heating oil,” he said.Rep. Jonathan Steinberg, D-Westport and a member of the legislature’s energy and technology committee, said a pause for a couple of years would help policymakers gather more information.The 2018 law was a “radical departure, making a rather precipitous lurch,” he said.Environment Connecticut State Director Chris Phelps told lawmakers they have the opportunity to change the 2018 law and “restore policies supporting continued growth of solar power” in Connecticut.“Over the past eight years, hundreds of megawatts of solar power have been built statewide,” he said. “Solar power, ranging from large grid-connected systems to single homes with rooftop panels, is helping move our state towards a renewable energy future.”Katie Dykes, commissioner of the state Department of Energy and Environmental Protection, told lawmakers in written testimony at a recent public hearing that the 2018 law began a transition of Connecticut’s on-site energy generation, such as rooftop solar panels, “to a more market-driven, competitive, cost-effective and transparent framework.”She said more time may be needed for project developers and financiers to adapt business models to new policies and compensation structures “and for the electric distribution utilities to adjust and modernize their metering and billing systems.”“An extension of time should not, however, halt or reverse the progress to date on new tariff development,” Dykes said.Patrick McDonnell, vice president of regulatory affairs at UIL Holdings Corp., the parent company of United Illuminating, said the 2018 law is an example of a “deliberate strategy” to promote zero-carbon energy.“While these changes are critical adjustments to the incentive policies that are important to transition renewable energy from a subsidy based offering to one that competes in the competitive energy, there needs to be a smooth transition to accomplish these goals,” he told lawmakers.Like this? Click to receive free updates

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