Breaking Down New Jersey’s New Solar Incentive Program

August 26, 2021

The New Jersey Board of Public Utilities (NJBPU) voted unanimously on July 28, 2021 to implement a new solar incentive program that will provide incentives for up to 3,750 megawatts (MW) of new solar generation by 2026. The Successor Solar Incentive Program — or SuSI Program — is mandated by the Clean Energy Act of 2018 to replace the state’s Solar Renewable Energy Certificate (SREC) program with new incentives that encourage solar development while minimizing ratepayer cost. This program is expected to double New Jersey’s current solar capacity.

The SuSI Program, which takes effect August 28, 2021, contains two sub-programs:

  • The Administratively Determined Incentive (ADI): This is a fixed incentive payment for net metered solar projects of 5 MW or less. It includes residential customers and most commercial and industrial buildings, as well as all community solar installations. The incentive value will vary based on project type and size and will be guaranteed for 15 years.
  • The Competitive Solar Incentive (CSI): This is a competitive solicitation process to incentivize the lowest financial contribution from ratepayers for grid supply projects and net metered commercial and industrial projects larger than 5 MW.

Solar panels

The new incentive levels for the ADI range from $70 to $120 per New Jersey Solar Renewable Energy Certificate-II (SERC-II). This is significantly less than the previous SERC of $220 and brings New Jersey closer in line with incentive rates in some neighboring states. In addition, an extra $20/MWh incentive is provided for public entity projects. Those include school districts, municipalities, public colleges, and universities, as well as a temporary added incentives for projects built on lands.

For more information about the how CEC can support solar development projects contact Kris Macoskey at kmacoskey@cecinc.com or 412.249.3147 and for New Jersey-specific information contact Steve Maxwell at smaxwell@cecinc.com or at 888.267.7891.

About the Author


Steve Maxwell

Steve Maxwell, LSRP, P.G., is a Senior Project Manager in CEC's Environmental Engineering and Sciences Practice at our Philadelphia office. His areas of expertise are in environmental forensics, sediment assessment, tidal marsh hydrodynamics, sediment ecological risk assessment, site assessment, and site remediation.

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