How Solar Energy Bill S1925/A2966 Could Revive The Solar Market in NJ

How Solar Energy Bill S1925/A2966 Could Revive The Solar Market in NJ

After a record breaking summer of solar panel installations in June of 2011, New Jersey found itself with an abundance of Solar replaceable Energy Certificates (SRECS) saturating the market only a year later. SRECS are the way that solar energy is bought and sold from homeowners and business owners to energy companies. These certificates represent all the Clean Energy benefits of electricity produced from a solar electric system. When the price of SRECS fell by more than half, homeowners and business owners in NJ were left with an over-abundance of credits that could not be sold. As a consequence, the price of the Certificates plummeted, the solar market plummeted, and New Jersey now has less solar panel installations then ever before.

Bill S1925/A2966, recently signed by Governor Christie, aims to absorb the overabundance of SRECS, increase their value and attract new solar investors. Essentially, the new bill would revive the solar energy sector by increasing the amount of solar energy state utilities must buy.

As utility companies slowly absorb the excess credits, the price per credit will once again rise, creating a healthy and strong solar market.

The increase in SREC requirements is hypothesizedv to take place June 1, 2013. Additional changes, including extending the life of SRECs to five years, are also a part of the new legislation.

This is excellent new for New Jersey and its solar strength sector. Not too long ago, the garden state overtook California as the largest solar market. When Bill S1925/A2966 begins to take effect, it could cause a emotional turn for the state and help it get back to its leadership position.

Solar energy is a long term investment, but an increase in the price of SRECS could help certificate owners realize their return much faster, and make the certificates much more valuable.

Businesses stand to save a substantial amount of money by switching to solar strength systems, which can greatly enhance their bottom line and allow them to thrive and create more jobs. Similarly, homeowners are protected from rising utility costs and can re-sell surplus energy back to utility companies for a profit.

According to The US Department of Energy, electricity utility costs will more than double in the next five years. Having a commercial or residential solar strength system installed has never been a smarter choice for a business or homeowner, especially with the signing of Bill S1925/A2966.

leave your comment