In June of this year, New Jersey phased out its highly successful legacy Solar Renewable Energy Certificate (SREC) Program and replaced it with the new Transition Renewable Energy Certificate (TREC) Program. Historically, New Jersey has been one of the most progressive states for solar energy, and with the transition to the TREC Program, there are still renewable energy incentives available to residents, business owners, and municipalities throughout the state.
Background
Per the Clean Energy Act signed by Governor Phil Murphy in 2018, New Jersey was required to close the SREC incentive program once the New Jersey Board of Public Utilities (BPU) determined solar electricity generation equaled 5.1% of the total state electricity generation load. This past spring, the BPU announced that it would meet the 5.1% milestone and proceeded to close the SREC program.
The BPU was also tasked by the Clean Energy Act of 2018 with developing a successor solar program. Until that program is finalized, the BPU has proposed and finalized the new temporary TREC Program. Solar projects that have submitted a complete application to the legacy SREC registration program, but are not yet operational, will be eligible for this transition program.
TRECs vs. SRECs: What’s the Difference?
Like SRECs, TRECs are awarded to owners of solar systems for every megawatt hour (MWhr) of solar electricity produced by their solar system. Under the new TREC program, a new solar project will be eligible for TRECs for 15 years and each TREC will have a 2-year life.
There are, however, several differences between the SREC and TREC programs, most notably the fixed value of $152 per credit for the new TREC. Each project type is also assigned a factor based on the type and location of the proposed solar facility, which is a multiplier of the fixed $152 rate. A landfill project carries a factor of 1 versus a net metered non-residential ground mount, which has a factor of .6 (or a TREC value of .6 x $152= $91.2 per MWhr).
It is important to note that this new program with fixed rates may have changed the value of the potential solar installation at your facility or property.
We Can Help
Whitman has extensive design experience and relationships with developers that can assist with your project.
From rooftops, to carports, ground mounts and landfills, we have performed complete design services for more than 600 MW of renewable energy systems located in numerous states, with more than 400 MW of systems currently operational.
Our clients range from small business owners to large utility scale customers. All of the professional services necessary for the design, permitting and field assessment of these systems are performed by Whitman’s in-house staff, allowing for more fluid communication, resulting in increased project design and cost efficiencies.
Contact Us
For more information on the new TREC Program, or how we can assist you with your solar project, contact:
Carey Ruetsch
Vice President of Engineering
cruetsch@whitmanco.com
(732) 390-5858
Posted on August 4, 2020
