New Jersey Market Details

Market Overview

The VA SREC Market is an open market where prices are determined by market forces. Key factors include the Alternative Compliance Penalty along with supply and demand based on the Renewable Portfolio Standard (RPS).

Community Solar Energy Program (CSEP)

The Community Solar Energy Program (CSEP)replaces the Community Solar Pilot Program, which was closed to new registrations on February 5, 2021. The CSEP provides incentives to eligible community solar facilities to enable the continued efficient and orderly development of solar electric generating sources throughout New Jersey.

NJ Successor Solar Incentive Program (SuSI Program)

The New Jersey Clean Energy Act of 2018 directed the New Jersey Board of Public Utilities (NJBPU) to adopt rules and regulations to close the SREC Registration Program (SRP). The NJBPU has established the Successor Solar Incentive Program (SuSI Program) as the long-term solution.

The SuSI Program includes two sub-programs: the Administratively Determined Incentive (ADI) Program for systems under 5MW DC and the Competitive Solar Incentive (CSI) Program for systems over 5MW DC. Solar facilities that reached permission to operate after August 28, 2021, are to participate in the ADI Program.

ADI (SREC-II) eligible projects can participate in the program for 15 years following the system’s Interconnection approval date. After 15 years, projects may be eligible for a NJ Class I REC.

ACP and Market Trend

System Eligibility and SREC-II price offered to SuSI-eligible solar facilities is determined by the project type and classification within the system’s assigned State Certification Number (see table above). Program incentive values are periodically assessed and subject to change at the NJBPU’s discretion.

However, the changes will not impact facilities with an existing certification.  The SREC-II incentive level was adjusted for systems submitted to the ADI for Part 1 (pre-installation) approval after March 13, 2023. The most notable change in the pricing affects net metered residential systems, changing the pricing from $90/REC to $85/REC.

Retroactivity / Eligibility Start Date

A system’s eligibility to start generating RECs is based on the system’s interconnection approval. However, unclaimed RECs will be forfeited after the proceeding energy year. The NJ energy year is set from June 1 to May 31.

Example: A facility that is issued interconnection approval on 3/10/2022 and is registered on 8/20/2023 can only receive SREC payments back to June 1, 2022.

REC Shelf Life

RECs can only be claimed in the energy generation year or the year thereafter. 

Example: A SREC generated in July 2022 can be counted towards the 2023 or 2024 compliance periods.

SREC Crash Course: The Basics

Frequently Asked Questions

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