By Joshua Burd
A state pilot program that has brought solar panels and new revenue to dozens of New Jersey industrial buildings is now permanent after a recent vote by utility regulators.
Known as community solar, the policy in recent years has allowed property owners to lease their rooftops to developers of solar arrays, enabling the latter to sell renewable energy to nearby residents. The program has required that at least 51 percent of the power generated goes to low- and moderate- income customers, providing discounted energy while creating new revenue streams for businesses.
On Aug. 16, the state Board of Public Utilities voted to make the program permanent, having approved 150 projects totaling 243 megawatts of capacity during the pilot period, according to the agency. To date, 29 of those projects equating to 50 megawatts have reached commercial operation and provide more than 6,000 New Jersey households with solar power.
“By building on the successes of our nation-leading Community Solar Program, we will continue to expand access among New Jersey families to the significant benefits of clean energy,” Gov. Phil Murphy said. “For far too long, those benefits — both environmental and financial — have remained out of reach for many of our low- and moderate-income residents, including renters. Thanks to programs like these, which prioritize the equitable and inclusive adoption of clean energy, we will continue to ensure that no New Jerseyan, regardless of their ZIP code, is left behind in our pursuit of a clean energy future.”
The program, which was created under a law signed by Murphy in 2018, has helped many commercial real estate owners in the state become involved with renewable energy. Meantime, state officials see it as a way help those who rent, lack control of their roof, live in a multifamily building, do not have property suitable for solar or cannot afford the cost of installation to benefit from the cost savings and access to clean energy.
Beyond the 29 projects that are already operational, the BPU expects another 97 projects to begin serving customers within the next several months.
“I am thrilled that the board has made our extremely popular and successful Community Solar Program permanent,” BPU President Joseph L. Fiordaliso said. “At the heart of it, community solar is about unlocking access to clean energy for many residents, especially in low- to moderate- income communities and in urban areas where residential rooftop and ground mount solar are not possible. Today’s action will help more New Jerseyans reap the benefits of our clean energy transition and help combat the devastating and worsening impacts of climate change.”
The permanent CSEP will permit community solar projects of no greater than five megawatts on rooftops, carports and canopies over impervious surfaces, contaminated sites and landfills and certain bodies of water such as water treatment reservoirs and dredge ponds, according to a news release. The BPU anticipates opening the application window for a 225-megawatt capacity block for Energy Year 2024 in November 2023, while also planning an application period for Energy Year 2025.
Under the permanent program, the state will require all community solar projects to continue to devote at least 51 percent of their capacity to low- and moderate-income subscribers.
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