New Jersey community solar expansion largest in US

The basics:

• NJBPU approves 3,000 MW expansion of NJ community solar program — largest allocation in state history
• Board also approves 355 MW in battery storage incentives, launches second solicitation
• Three projects totaling 24.12 MW receive awards under the Competitive Solar Incentive Program
• Officials say moves support Gov. Mikie Sherrill’s clean energy/affordability goals, while expanding in-state power generation

Picking up the baton from Gov. Mikie Sherrill’s first actions upon taking office, New Jersey is trying to address rising costs and improve and expand energy generation.

Among the March 4 moves, the New Jersey Board of Public Utilities approved a 3,000 megawatt-expansion of the state’s community solar program. The increase marks the largest capacity allocation in state history. It also sets a precedent as the biggest expansion of a state-run community solar program nationwide, according to the board.

Additionally, NJBPU cleared incentives for 355 MW in battery storage, while also launching a second solicitation. Over the battery program’s span, the department projects the awards will generate ratepayer savings totaling more than $169 million.

Lastly, it cleared three awards (of 18) under the third solicitation of the Competitive Solar Incentive Program.

NJBPU President Christine Guhl-Sadovy called solar and battery storage the fastest and most cost-effective way to build new generation. “Today’s actions advance Gov. Sherrill’s clean energy goals while continuing the board’s commitment to balancing affordability and promoting clean, in-state energy resources,” Guhl-Sadovy said.

The department described the actions as the most consequential implementation of Sherrill’s energy directives, so far.

Competitive Solar Incentive Program

The latest CSI incentives total 24.12 MW of new solar generation. Awards went to:

• Court at Deptford Solar – 4.1 MW
  Gloucester County
• Deptford Landfill Solar – 10 MW
  Gloucester County
• North Jersey District Water Supply Commission – 10 MW
  Passaic County

NJBPU said the North Jersey District Supply project at the Wanaque Reservoir would establish the largest floating solar facility in the nation.

The CSI Program uses competitive solicitations to award Solar Renewable Energy Certificates to eligible grid supply solar, solar-plus-storage, and large non-residential net-metered projects.

It aims to help secure new solar the lowest possible incentive cost.

Natural Resources Defense Council New Jersey said the awards represent the first ever for grid-scale storage in New Jersey history.

NRDC New Jersey Policy Director Eric Miller described the move as a critical step to getting getting more clean energy creation online as quickly as possible.

“The state needs all the megawatts of solar and storage it can get to provide clean, reliable, in-state power,” Miller said. “The BPU opened new solicitations for even more battery storage, solar, and community solar that will lower energy costs for everyone, especially community solar participants. … New Jersey must continue to invest in in-state generation to support the state’s ambitious climate and clean energy goals and grow good-paying union jobs.”

New Jersey must continue to invest in in-state generation to support the state’s ambitious climate and clean energy goals and grow good-paying union jobs.”
— Eric Miller, New Jersey policy director, NRDC

NJBPU said launching the next tranche so closely to the third solicitation awards preserves a steady pipeline of private solar investment. It highlighted CSI as a central tool for reaching the state’s 3,750 MW of new power by 2026 under the Solar Act of 2021.

The fourth round of CSI calls for basic grid supply projects greater than or equal to 20 MW. The board said it set capacity allocations for all competitive tranches, as well as established confidential price gaps to protect rate payers against high bids. It also waived bid fees for projects that participated in a previous solicitation.

Community solar

The latest community solar expansion will provide clean energy savings for about 450,000 subscribers, NJBPU said. The new capacity distribution to major electric utilities is:

• PSE&G – 1,555 MW
• Jersey Central Power & Light – 787 MW
• Atlantic City Electric – 324 MW
• Rockland Electric – 51 MW
• Reserved for landfill projects – 300 MW

Effective March 6, project registrations will remain open through Dec. 31, 2029, or until all 3,000 MW are subscribed.

To date, New Jersey community solar has delivered more than $70 million in bill credits and $14 million in net savings to more than 37,000 subscribers, NJBPU said. The 162 operation projects total 228 MW.

In addition to expanding access to affordable clean energy, the community solar boost will repurpose underutilize landfills into clean energy assets.

“With this expansion, New Jersey has solidified its position as a national leader in community solar, delivering meaningful energy savings to residents while creating new opportunities for commercial property owners,” commented Solar Landscape CEO Shaun Keegan.

Based in Asbury Park, the company is the nation’s leading commercial rooftop solar developer. Solar Landscape has deployed 800 MW of solar across 75 million square feet of rooftop space — transforming rooftops into revenue-generating assets.

Keegan went on to commend Sherrill and the NJBPU “for prioritizing community solar and advancing a framework that enables the program to scale.”

“This is the kind of swift state action we need to see nationwide on community solar in order to bring relief to more Americans struggling to pay high energy bills,” said Dimension Energy Vice President of Policy Brandon Smithwood.

Garden State Energy Storage Program

The first tranche of Garden State Energy Storage Program incentives will provide flexible, on-demand power to the PJM regional grid, NJBPU said:

• Woods Landing Storage LLC – 200 MW
  Sayreville, Middlesex County
• Two Rivers Energy Storage LLC – 150 MW
  Ridgefield, Bergen County
• North America Energy Storage Corp. – 5 MW
  Bordentown, Burlington County

Incentive payments for these projects will come from existing Societal Benefits Charge funds, requiring no new rate increase to support these projects, according to NJBPU.

Phase 1, Tranche 2 of the GSESP also launched this week, opening a second competitive solicitation for 645 MW of additional storage capacity.

The move fulfills EO 2, signed Jan. 20 on the inauguration stage in Newark. Upon its completion, New Jersey will reach the complete 1,000 MW transmission-scale storage target required by law. It also moves closer to a broader goal of 2,000 MW of storage by 2030.

The board said it is acting quickly to position these projects to participate in next year’s PJM Base Residual Auction. NJBPU said the additions could deliver substantial capacity market savings for New Jersey ratepayers.

Making good on a campaign promise, Sherrill declared a State of Emergency on Utility Costs her first day in office (EO 1). The move directed NJBPU to freeze rate hikes. EO 2 also directs NJBPU to streamline permitting, address load growth from data centers and launch a nuclear power task force. On Feb. 4, NJBPU issued a call for 30-day plans from utilities.

In an alert about the actions, Greenbaum Rowe Smith & Davis LLP partners Barbara Koonz and Kenneth Sheehan wrote that, “While the success of these programs in lowering electricity costs in a meaningful manner remains to be seen, they represent a significant step in New Jersey’s energy strategy.”

NJBPU said New Jersey is seeking to expand in-state generation through distributed energy resources such as solar and energy storage. It notes that deployment has increased, through programs like community solar and competitive incentives.