In December 2019, the Transition Incentive (TI) Program was established by the New Jersey Board of Public Utility (NJBPU). The program included the creation of fixed-price, factorized Transition Renewable Energy Certificates (TRECs) for eligible solar energy projects, including those on dealership properties. The TRECS make New Jersey’s solar incentives one of the best subsidized programs in the country, but the value of the TRECS is expected to be reduced by August 2021.
The program currently pays eligible businesses a 15-year fixed rate of $152 for every 1,000 kWh of solar energy generated. New Jersey franchised dealers that have a $500,000-$600,000 system (cash or financed) and 2 or 3-year payback schedule on their 450,000 kWh solar system will have half the cost covered by the $300,000 in available federal tax incentives. In addition, these dealers can earn up to $1 million T-REC payments and see another $1.2 million in utility bill energy savings.
To be eligible for TRECs, the dealership’s solar generator must be approved in the Transition Incentive (TI) Program and provided a unique TREC Certification Number. Once certification is received, dealers would need to register their system in order to receive REC payments.
For more information visit https://trecsnj.com/.