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What is New Jersey’s strategy and timeline for establishing a REC based financing system?

April 26, 2017based financing NEW JERSEY REC strategy system timeline

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What is New Jersey’s strategy and timeline for establishing a REC based financing system?

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The New Jersey Board Of Public Utilities (BPU) is establishing a strategy to evolve from an market dominated by up-front rebates to a market with greater focus and reliance on the sale of Renewable Energy Certificates (RECs). This transition allows a more market-oriented approach to foster economic development, and reduce dependence on the programs needed to provide rebates. The resulting REC-based financing will result in performance based economics, enhanced market growth and elimination of current growth barriers, and cost improvements through scale. BPU has launched a Pilot Voluntary REC Program to finance 17 MW of installed solar capacity. This will provide a test of market response to REC based financing for solar in New Jersey. In addition, the state’s regulated electric utilities are required to enter into long term contracts for the purchase of RECs that are then sold to electric suppliers, or load-serving entities, which are parties that must comply with the state’s RPS.