New Jersey saw the installation of more
solar systems in the year of 2011 alone than in the entire prior decade. By June, it could hit a projected solar capacity of 702 megawatts–an amount at least 133 percent higher than a
legislatively mandated targets.

NJ Spotlight‘s Tom Johnson writes today that:

“Those projections easily exceed the so-called state renewable
portfolio standard for solar — a requirement that steadily ramps up how
much solar electricity must be provided to customers — and are
expected to hold until the year 2014, according to the consultant’s
analysis.”

Time to break out the solar champagne?  Hmm, maybe not.

In Solar Megawatts Continue to Climb, Amid Concerns About the Health of the Sector, Tom also tells us about new factors that have led some to fear an upcoming crash in the solar market.

They include a huge drop in the prices of solar renewable energy
certificates (the primary means of financing installation of solar
panels), a reversion of a federal credit from an
upfront cash grant back to a credit this year, and the
elimination of an accelerated federal depreciation for solar systems.

“Worried about those issues, the state is exploring numerous options
to remedy the drop in prices for the solar certificates. While not
agreeing on the details, both legislators and the state Board of Public
Utilities have embraced the idea of accelerating how much solar energy
should be supplied to customers by power generators, although how long
that should occur is still under discussion.

“In addition, the state is looking at extending utility-sponsored
solar loan programs that help residents and businesses put solar panels
on their homes and facilities.