New Jersey Solar Roundtable
Transcript of New Jersey Solar Roundtable
New Jersey Solar Roundtable Transition to a Market-based REC Financing System
Scott Hunter, Renewable Energy Program AdministratorNJBPU, Office of Clean Energy
Presented at New Jersey Institute of Technology
Eberhardt Hall, Room 112February 22, 2007
New Jersey’s Clean Energy Program- An Integrated Approach to Market Building
A statewide initiative administered by the New Jersey Board ofPublic Utilities that promotes energy efficiency and renewableenergy for all New Jersey ratepayers; residences, businesses,schools and municipalities.
New Jersey Solar PV TodayFastest Growing and Second Largest in the US
CORE Solar Expenditure$
Data from Jan '05 through Dec.'06 (with forecast trend through April 2007)
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Jan.
'05
Mar
May Ju
lSep
Nov
.
Jan.
06
Mar
. '06
May
'06
July '0
6
Sep. '06
Nov
. '06
• Comprehensive Resource Assessment (CRA) - apublic program planning tool
• Societal Benefits Charge (SBC)
• Net Metering & Interconnection Standards
• Renewable Portfolio Standard
Key Elements of the Electric Discount and EnergyCompetition Act of 1999 (EDECA)
NJCEP Rebate:$38,000
Electric cost savings(net metering) :
$1,650 / yr
NJCEP’s Integrated Approach AppliedA Typical 10 kw Residential Solar Electric System
Insert Residential Home
Installed Cost: $77,500
SREC Income:(RPS)
$2,160 / yr
Out of PocketExpense: $37,500
Federal TaxCredit: $2,000
Payback Period: < 10 yrs
Total AnnualSavings:$3,810
NJCEP Funding Levels; CRA 2004New Jersey’s Clean Energy Program 2005 – 2008 SBC FundingNon-bypassable fee on all electric and natural gas customers
37%$27363%$472$745Total
44%$10256%$133$2352008
40%$8260%$123$2052007
32%$5268%$113$1652006
26%$3774%$103$1402005
%RE%EETotalYear
44% for electric EE 17% for NG EE 37% for RE $18/yr/HH for electric and $14/yr/HH for natural gas in 2008
1% rate impact over 4 years
Customer Onsite Renewable Energy Program:CORE Rebates
Reduces the installed cost of Class I Renewable Energy Systems:
Solar Photovoltaics, Wind Turbines, Landfill Gas Turbines, Fuel Cells
Rebate provided after installation & inspection
Calculated with descending tiers based on system capacity
Capacity limited to annual electricity use and/or 10 kW cap for residential
Only New Equipment
System warranty > 5 years
Proposed: Subsidized equipment must stay in the state for 10 yrs.
• Revised from Interim in September 2004
• All Class I Renewables; Up to 2 MW @ 100% of Annual
Electric Consumption
• Commercial Businesses Up to 10 MW peak load
• Projects < 10 kW Inverter-based - No fee
• Reduced barriers
• Set timeframes for review
New Jersey’s Net Metering and InterconnectionStandards
NJ’s RPS – Revised from Interim April 2004
3.84
2.924
2.037
0.983
0.74
%
89390.162009
0.0817
0.0393
0.017
0.01
%
66272008
38142007
1942006
1.642005
MWacMWacJune – May 31, XX
REClass I
SolarPVEnergy Year
NJ Solar REC Market – First Years Results
• Energy Year 2005: March ‘04 thru May 31, 2005
• 3,422 SRECs retired toward 4,822 required
• 2640 SACPs Payments Made for $792,000
• Energy Year 2006: June 1, 2005 thru May 31, 2006
• 10,723 SRECs retired toward 10,450 required
• 163 SACPs Made for $48,900
• Price and Trading History posted to NJCEP.com
NJ Solar REC Market – Current Year TradingNJ SREC Program: Reporting Year 2007 Trading Statistics
Month / Year
# SRECs
Traded in
Month
Cumulative
#SRECs
Traded
Cumulative
Weighted
Average Price
($/MWh)
Monthly
High
($/MWh)
Monthly
Low
($/MWh)
Cumulative
High
($/MWh)
Cumulative
Low
($/MWh)
Jul-06 237 237 $218.60 $240 $150 $240 $150
Aug-06 131 368 $213.77 $235 $150 $240 $150
Sep-06 747 1115 $206.08 $255 $174 $255 $150
Oct-06 464 1579 $205.99 $250 $160 $255 $150
Nov-06 1022 2601 $197.89 $260 $110 $260 $110
• Transition to NJCEP Market Managers
1-866-NJSMART
• Public input for New Jersey’s Energy Master Plan
• Transition solar market to SREC based market
• Integrate EE and RE Program Delivery
• Continuous Assessment and Evaluation toward Energy
Market Transformation
New Jersey’s Clean Energy ProgramNext Steps
NJCEP Rebate:$?
Electric cost savings(net metering): $?/ yr
NJCEP’s Integrated Approach in the future
Insert Residential Home
A Typical 10 kw Residential Solar Electric System
Installed Cost: $?
SREC Income:(RPS)$? / yr
Out of PocketExpense: $?
Federal TaxCredit: $?
Payback Period: < 10 yrs
Total AnnualSavings:
$?
New Jersey’s Integrated ApproachMore Information
New Jersey’s Clean Energy Program:www.njcleanenergy.com
New Jersey BPUwww.bpu.state.nj.us
Evaluation Reports:Rutgers’ Center for Energy, Economics and
Environmental Policy (CEEEP)http://policy.rutgers.edu/ceeep/images/NJ_R
EMA_Final_8-04.pdf