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ARTICLE · 03 DECEMBER 2012

New Jersey Struggles With Implementation Of Solar Law

Cozen O'Connor
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New Jersey is struggling to fix its solar market following a sustained and precipitous drop in prices for Solar Renewable Energy Credits (SRECs).

United StatesEnergy and Natural Resources
Peter Fontaine
Peter Fontaine
Ira Megdal
Ira Megdal

New Jersey is struggling to fix its solar market following a sustained and precipitous drop in prices for Solar Renewable Energy Credits (SRECs). A new solar energy bill (the Solar Law) designed to stabilize the market was signed into law on July 23, 2012 by Governor Chris Christie but questions surrounding its implementation by the New Jersey Board of Public Utilities (BPU or the Board) have led many stakeholders to question the sustainability of New Jersey's solar market under its current design.

The New Jersey Renewable Portfolio Standard (RPS) requires New Jersey electricity suppliers to secure a portion of their electricity from solar generators. Electricity suppliers fulfill this obligation by purchasing SRECs from solar generators. If electricity suppliers fail to meet their RPS obligations, they must pay a fine, known as the Solar Alternative Compliance Payment (SACP).

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