TRENTON, NJ — May 3, 2023 — The New Jersey Board of Public Utilities (NJBPU) is celebrating a record year in the development of New Jersey’s solar market. New Jersey homes and businesses added 455 megawatts (MW) of solar generating capacity through 18,000 new installations in 2022, exceeding the previous record of 453 MW installed in 2019.
New commercial solar generation was an important part of this, with a near-record more than 800 new commercial installations with 267 MW of aggregate capacity. Each of these totals will continue to grow as solar developers submit evidence of their project reaching commercial operations in 2022.
“The record-setting pace at which New Jerseyans are installing solar panels shows that people across the Garden State increasingly recognize the benefits that come from using clean energy,” said NJBPU President Joseph L. Fiordaliso.
Solar plays a critical role in the State’s adoption of renewable energy targeted to supply 34% of the goal for 100% clean electricity by 2050 as expressed in the 2019 Energy Master Plan. By Executive Order issued on February 15, 2023, Governor Murphy accelerated the clean energy goal for the State to 100% by 2035. Investments in solar, energy efficiency, and offshore wind are expected to provide the foundation for achievement of the State’s clean energy goals.
2022 Milestones in New Jersey Solar Market Development
The Solar Act of 2021 established an annual goal of 750 MW from a combination of community solar, net-metered projects less than 5 MW in the Administratively Determined Incentive (“ADI”) program and competitively-procured grid supply and larger net-metered projects. 2022 was the first full year of operation of the ADI program, which began taking registrations in August 2021. In December 2022, the Board approved the design of the Competitive Solar Incentive (“CSI”) program.
The CSI Program constitutes the second branch of the Successor Solar Incentive Program launched in 2021, complementing the ADI Program with a competitive solicitation designed to provide incentives to qualifying grid supply solar installations and non-residential net metered solar installations with a capacity greater than 5 MW. The Solar Act of 2021 also directed the Board to establish siting criteria for those solar installations eligible for the CSI Program, whether or not an incentive is sought.
The Community Solar Energy Pilot Program saw seven more projects come online in 2022, bringing the total installations to 21 projects, including the first project of the second Pilot Program Year. These community solar projects now provide bill credits to more than 5,500 New Jersey subscribers. Customers who previously may not have had the ability to take part in solar projects have saved more than a million dollars on energy costs to date. The BPU anticipates another 100 community solar projects energizing in 2023, bringing over 150 MW of renewable energy to subscribers, half of which must be low- or moderate-income. Board Staff is currently accepting stakeholder input on the parameters of a permanent Community Solar Energy Program.
Also in 2022, Board Staff released a proposal for developing an energy storage incentive program designed to achieve the State’s goal of 2,000 MW of storage by 2030. A stakeholder process is underway with stakeholder comments being compiled to inform program design and funding decisions.
In anticipation of the accelerated ramp up of solar, storage, and electric vehicles, the Board advanced its Grid Modernization (“GridMod”) program in 2022 by publishing its initial report on recommendations aimed at facilitating interconnection of distributed energy resource types to the distribution grid. On November 9, 2022, draft interconnection rule amendments were released for stakeholder input. In parallel with the interconnection rule amendment process, a GridMod Forum stakeholder process is being designed to provide input on possible improvements related to enabling compensation for distributed resources; improving efficiency and automation for the interconnection process; mitigating cost barriers currently inhibiting stronger adoption.
The reports on solar activity in New Jersey, installations and the pipeline of active registrations are updated on a monthly basis. The reports can be found here.
Media Contact: Shaheed M. Morris (609) 477-0281; [email protected]
About New Jersey’s Clean Energy Program (NJCEP)
NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State’s residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers’ energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is www.NJCleanEnergy.com.
About the New Jersey Board of Public Utilities (NJBPU)
NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu.
