On Thursday, October 6th, the New Jersey Assembly Telecommunications and Utilities Committee passed and merged bills S-2276 and A-3918 in a 5-2 vote that will “pull forward” the solar carve-out from 3.47 percent to 4.1 percent by 2021.
For several years, New Jersey was the poster child for SREC market volatility. In 2012, SRECs tanked from a high of ~$700 per SREC in 2009 to just $70 per SREC. The market finally reached stability when Governor Christie signed legislation – the S1925/A2966 bill – into law in 2012. The bill accelerated the Renewable Portfolio Standard (RPS) by four years, bringing supply and demand back into equilibrium.
Since the bill’s passage in 2012, SREC pricing has recovered to recent highs of $260. However, last year’s solar investment tax credit (ITC) extension – among other factors – are causing the rate of solar installations to increase dramatically, which threatens to push supply and demand into disequilibrium once again. The pull forward bill was designed to better align solar installation rates with the years that the solar industry has to take advantage of the ITC, and to prevent investment from going to other states as SREC prices continue to fall.
Next up, the bill will be listed for a vote in the General Assembly. Will it move forward? Stay tuned to our blog for more information.
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Sol Systems, a national solar finance and development firm, delivers sophisticated, customized services for institutional, corporate, and municipal customers. Sol is employee-owned, and has been profitable since inception in 2008. Sol is backed by Sempra Energy, a $25+ billion energy company.
Over the last eight years, Sol Systems has delivered more than 500 MW of solar projects for Fortune 100 companies, municipalities, universities, churches, and small businesses. Sol now manages over $650 million in solar energy assets for utilities, banks, and Fortune 500 companies.
Inc. 5000 recognized Sol Systems in its annual list of the nation’s fastest-growing private companies for four consecutive years. For more information, please visit www.solsystems.com.