On July 28 the NJ Board of Public Utilities announced the Successor Solar Incentive (SUSI), which will officially launch August 28, bringing a close to the current TREC incentive. There is still time to secure the TREC incentive and applications must be submitted no later than August 27, 2021.
- Up to 41% reduction of incentive value
For commercial solar projects installed on a roof or carport, The proposed incentive is up to 41% lower than currently available under the Transition Incentive Program. The TREC pays solar system owners up to $152/MWh ($0.152/kWh) for 15 years. Under the Proposed Successor Program, system owners would be paid just $100/MWh for projects up to 1MW and $90/MWh above 1MW up to 5MW.
Example impact to a 1 MW project:
What these changes mean for you if you miss the window to use the current incentive program for your solar project:
- If you want to buy a solar system : You would miss out on revenue of $930,000 (~$62k per year)
- If you want to get a financed solar system : You would pay $60k per year for 15 years, instead of paying $0 for 15 years and collecting $150,000 up front
- Application process and fees
Applying for the current TREC incentive is simple, allows for some flexibility for changes to the system size, and has no application fees. So if you’re considering solar for your NJ building(s), it’s straightforward to secure an incentive reservation with no cost or risk.
The SUSI program will require more detailed application information and an application fee. This means that more feasibility and design work must be completed prior to applying for the incentive, and increases the financial risk and lead times for project developers and customers.
- System size and total program capacity is capped
Under the TREC program, system size is limited only by the customer’s electrical consumption and there is no statewide cap on the number of systems that can collect the TREC. You can get all the solar you need to offset up to 100% of your annual electrical consumption and collect the full incentive on all of it!
Under the SUSI, each project will be limited to 5MW in capacity. Larger projects would need to apply under a competitive solicitation process, which will likely result in a much lower incentive.
The SUSI also contains a volume cap on the amount of solar that can qualify for the incentives. This means the program could run out of money before you apply, causing your project to be delayed, and/or to get a lower incentive.
OnSwitch is following these changes closely and is helping our customers prepare TREC incentive applications in order to lock-in the current lucrative incentives. Once the changes go into effect, our SkyQuotes engine will automatically update quotes and savings to reflect the new program incentives.