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July 23, 2012

RE: Governor Signs Solar Legislation, S-1925/A-2966

Dear Mayor:

Earlier today, Governor Christie signed into law S-1925/A-2966, legislation aimed to stabilize the solar industry and the “SREC” (Solar Renewable Energy Credit) market. 

The new law accelerates the renewable portfolio standard (RPS) for solar energy and reduces the solar alternate compliance payments.   Specifically, the 15-year RPS schedule is changed from a fixed megawatt requirement each year to a percentage of overall energy usage in New Jersey, ensuring that the level of solar obligation rises and falls with overall energy demand, which can vary due to economic factors as well as the success of energy efficiency and conservation programs.    

Under the legislation, the Board of Public Utilities (BPU) has the authority to review all proposed grid-supply solar projects, except for a limited amount (80 MW a year) for Energy Years 2014 through 2016.   The legislation is intended to encourage the development of grid supply on landfills, brownfields and areas of historic fill instead of on open space and farmlands.  The new law also allows local governments to enable net-metering aggregation projects.

The League will be meeting with the BPU to request guidance for municipalities on the implementation of the Act.   We will provide those materials as soon as possible.  In the meanwhile, questions can be directed to Mike Cerra at either or (609) 695-3481 x120.

Very truly yours,

William G. Dressel, Jr.

Executive Director



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