Here are some of the changes implemented by the new legislation: - Increase RPS: (Renewable Portfolio Standard) Increase the amount of SRECs that need to be purchased in the short term to absorb the oversupply and maintain a higher build rate
- Decrease the SACP: (Solar Alternative Compliance Payment) Lower the fine level from $600+ to $339 and lower to protect ratepayers.
- Limit solar farm development
- Incentivize solar development on landfills, brownfields and large net metered projects.
- Aggregated net metering for electricity consumption by certain governmental bodies and school districts.
Investors new and old in New Jersey solar still have to keep in mind the risk of overbuilding in the future still exists. Many solar developers lobbied for throttle mechanisms to help guarantee profits to solar owners by crowding out future development of solar in case of an overbuild situation again. This approach was rejected. Instead, land use and consideration for net benefits for net metered projects took precedent. These were all alluded to in the Energy Master Plan put out by the Christie Administration late last year. Many people in New Jersey have started to complain about solar farms and the legislature and Governors office has heard them.
The following have had instrumental input in either creating this legislation or influencing its outcome:
Governor Chris Christies' office
Stephen M. Sweeney - Senate President
Senator Bob Smith - Environment and Energy Committee
Assemblyman Upendra Chivukula - Telecommunications and Utilities Committee
Stefanie A. Brand, Esq - Director, Division of Rate Council - State of New Jersey
New Jersey Renewable Energy Coalition - a coalition of industry investors, headed by Tony Pizzutillo, was able to marry the objectives of both the Governor's Energy Master Plan with Legislative leadership. Also, the Coalition successfully identified statewide labor organizations as proponents of the industry.
There are many other renewable energy coalitions, environmental groups, electricity companies, large electricity consumer advocates, labor organizations along with New Jersey business owners and individuals who worked tirelessly over the past year to advance this legislation. I don't feel that any one group got exactly everything they wanted but in the end it is a good piece of legislation.
The only guarantee is that inputs will change as the years go on. If they are as extreme as they have been in the past two years future "tweaks" will be needed. I look forward to adding whatever information I can about SREC market structure, investors in solar and electric company interaction with RPS requirements.
This is a good day for all in New Jersey! Click Here to Read this Article on Our Website Governor Christie Builds on Record of Growing Renewable Energy Sources with Action to Strengthen Solar Market 
Trenton, NJ - Taking action that continues the Christie Administration's commitment to fostering the development of renewable energy resources in New Jersey, Governor Chris Christie today signed into law bipartisan legislation to strengthen and encourage the continued growth of New Jersey's solar industry, while protecting ratepayers from increased costs. The bill, S-1925, couples an acceleration of the renewable portfolio standard (RPS) for solar energy with a reduction of the solar alternate compliance payments, meeting an important goal of the Governor's 2011 Energy Master Plan (EMP), strengthening the solar market in New Jersey, and securing the state's place as a national solar energy leader.
"Since my time running for office, I made it clear that my Administration would be unrivaled in our aggressive support for the development of renewable sources of energy in New Jersey. Renewable energy not only helps meet our goals of increasing sustainability and protecting the environment, but can be an engine for economic growth and the creation of good-paying jobs for the people of our state," said Governor Christie. "The bill I am signing today furthers these goals and will help us remain a national leader in the solar energy industry as we continue to promote innovative approaches to solar development, like developing landfills and other unusable lands and transforming them into sources of usable clean energy, all while holding down costs for families and businesses."
Solar Alternative Compliance Payments (SACPs) set a ceiling on the market price of Solar Renewable Energy Certificates (SRECs"), which the suppliers and providers of electricity are required to purchase in an amount that satisfies the annual RPS requirement. The Division of Rate Counsel estimates that the law will save ratepayers approximately $1.076 billion over the next 15 years as compared to the current solar subsidy schedule. Click Here to Continue Reading this Article
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