TRENTON-Now issued in final form after months of delays, the State of New Jersey’s 2011 Energy Master Plan includes a significant commitment to solar power, including addressing this year’s dramatic drop in SREC prices. The state is required by a 1997 law to update the energy master plan every three years, and the most recent plan was issued in 2008. The 2011 update was delayed repeatedly this year.
According to Governor Chris Christie, the EMP offers concrete strategies to reduce some of the nation's highest energy rates and make them comparable to costs in other regions and states, which is consistent with the recommendations of the State Strategic Plan for facilitating economic growth and lowering the cost of living for New Jersey residents.
“It’s got something in it for everybody,” NAIOP NJ CEO Michael McGuinness tells GlobeSt.com. “It didn’t over incentivize the solar industry, and it expands on the energy conservation incentives for existing buildings. You just can’t over look the savings you can achieve in older stock.”
It is particularly important given that little new construction is scheduled in the state. McGuinness also praised the state’s continuing commitment to nuclear power “if it’s done carefully. We’ve learned a lot from past episodes. We’re so much more on top of things.”
The solar portion of the plan includes a temporary acceleration of the Renewable Portfolio Standard (RPS), the amount of energy from renewable sources that must be applied to New Jersey customers, allowing time for the industry to adjust to new lower prices. It also calls for reducing the Solar Alternative Compliance Payment (SACP) to minimize the impact on ratepayers.
“Overall Gov. Christie’s final draft of the Energy Master Plan was a step in the right direction for the solar industry. Although it’s just a framework for policy, it shows that New Jersey is serious about the future of renewable energy,” Jamie Hahn, co-founder and managing director of solar energy firm Solis Partners, tells GlobeSt.com. “Although the overall goal of achieving 22.5% from renewable energy sources by 2021 will stay the same, the new RPS requirement will help to alleviate the oversupply of SRECs, which in turn will stabilize the market and create demand for more projects, thus creating more jobs.”
Other items include: amending the Solar Advancement Act to change the RPS for solar energy from a fixed amount to a percentage of total energy consumed to promote the development of renewable resources; limiting SREC eligibility to projects that offer a "dual benefit" of reducing costs and providing revenue for job creation and tax reduction; and supporting an extension of the long-term contracting programs offered by electric distribution companies.
“This adopted plan supports enhanced reliability, lower energy costs and environmental protection while aiding the development of clean energy technologies,” says Lee A. Solomon, president of the Board of Public Utilities, in a statement. “It balances the needs of ratepayers with the State’s policy goals of promoting new in-state generation to displace old dirty technologies, create jobs and safeguard our air, water and land.”
The plan also calls for promoting energy conservation, including: improving the energy efficiency of state-owned and operated buildings; incorporating higher energy efficiency requirements within the state building code; expanding education; implementing programs including revolving loans for energy efficiency; and monitoring other incentives.
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