Increases solar development goals of SREC-II program and extends certain target dates of program to 2035.
Impact
The modifications introduced by S691 are expected to bolster the state’s renewable energy portfolio, providing a structured framework for solar energy development. This is anticipated to stimulate economic growth through job creation in the solar sector, enhance energy security, and contribute to the long-term sustainability goals set forth in New Jersey’s Energy Master Plan. The bill also seeks to advance the practice of utilizing existing and developed sites for solar farms, particularly on contaminated lands and landfills, fostering an environmentally responsible approach to land use.
Summary
Senate Bill S691 proposes significant changes to New Jersey's solar energy policy by extending the goals set forth in the Successor Solar Incentive program (SREC-II) to 2035. The bill aims to incentivize the development of renewable energy by raising the target for solar generation from 3,750 megawatts to at least 750 megawatts annually until the new deadline. This shift acknowledges the increasing demand for solar power amid climate change discussions and the state’s commitment to reducing greenhouse gas emissions.
Contention
Despite the positive outlook for increased solar energy deployment, the bill may face scrutiny regarding the regulatory processes established by the Board of Public Utilities. Stakeholders may express concerns about the competitiveness of the bidding process for solar projects, especially regarding the cap on renewable energy incentive payments and the criteria used to allocate SREC-IIs. This involves navigating the balance between promoting adequate solar development and ensuring that the interests of consumers and ratepayers are protected, which may spark debate among environmental advocates and energy providers alike.
Requires BPU to designate solar portion of critical renewable microgrid as solar energy project under Community Solar Energy Program; requires Office of Homeland Security and Preparedness to designate certain microgrids as assets of importance.