New Jersey Administrative Code › Title 14 - PUBLIC UTILITIES › Chapter 8 - RENEWABLE ENERGY AND ENERGY EFFICIENCY › Subchapter 11 - SUCCESSOR SOLAR INCENTIVE PROGRAM › Section 14:8-11.6 - New Jersey SREC-II value

Current through Register Vol. 56, No. 14, July 15, 2024
(a) A
				SuSI-eligible facility shall be eligible to generate NJ SREC-IIs for 15 years
				following the date of commencement of commercial operation. This 15-year period
				is defined as the New Jersey SREC-II qualification life at
				N.J.A.C.
				14:8-11.2.
(b) SuSI-eligible facilities shall be
				eligible to create New Jersey Class I RECs at the conclusion of the 15-year NJ
				SREC-II qualification life.
(c) NJ
				SREC-IIs shall be valued on a dollar per megawatt hour ($/MW-hour) basis for
				solar electricity generated by a SuSI-eligible facility during each year of the
				facility's 15-year NJ SREC-II qualification life.
(d) The NJ SREC-IIs produced by each facility
				registered in the ADI Program shall be assigned a specific incentive level,
				which shall vary based on which market segment the project is eligible to
				participate in, as identified at
				N.J.A.C.
				14:8-11.7(b), or as defined
				through a Board order.
(e) The ADI
				Program incentive values shall be reset through a Board order no less than once
				every three years, at least six months prior to the end of the third year,
				after public notice and comment. Factors considered in this proceeding will
				include, but not be limited to, existing modeling, major policy changes, market
				performance, and stakeholder input. The incentive values may be reset prior to
				the end of a three-year period if deemed necessary by the Board. If the Board
				does not initiate a triennial review and proceeding to affirmatively maintain
				or reset the incentives, incentives will automatically decrease by 10 percent
				for the following three-year period, and every subsequent three-year period,
				until such time as the Board takes action.
(f) An incentive reset in the ADI Program
				will not affect facilities with an existing ADI Program conditional
				registration or facilities already receiving NJ SREC-IIs at the time that the
				Board enacts the incentive value reset. Reset incentives will apply
				prospectively to pending applications that have not received conditional
				registration, as well as new applications to the ADI Program, until the next
				incentive value reset.
(g) The
				Board may, in its discretion, create an adder for ADI-eligible net metered
				facilities serving public entities. Factors considered in this decision will
				include, but not be limited to, costs specific to these types of facilities,
				the ability of public entities to benefit from Federal tax incentives, and the
				societal benefits of solar on public buildings. If applied, the value of this
				adder shall be determined by order and shall increase the value of each SREC-II
				produced by the facility by the amount of the adder for the qualified life of
				the facility. Projects seeking eligibility for the public entity adder may be
				required to provide supporting documentation in their SuSI Program registration
				pursuant to
				N.J.A.C.
				14:8-11.5.
(h) An ADI-eligible facility that, in its
				entirety, could be eligible for two or more market segments shall be assigned
				to the market segment with the lower incentive value.
(i) The NJ SREC-IIs produced by each solar
				facility registered in the CSI Program shall be assigned a specific incentive
				level, which shall be equal to the accepted bid into the CSI solicitation
				pursuant to solicitation rules and may be modified, pursuant to (j)
				below.
(j) Storage facilities
				accepted into the CSI Program shall be eligible for an adder to the NJ SREC-II,
				to be calculated in dollars/MWh and to be applied to the incentive for the
				associated solar facility. The value of the adder will be determined by taking
				the value of the installed storage facility discharge capacity, measured in
				megawatt-hours, dividing this by the value of the installed associated solar
				facility capacity, measured in megawatts, dividing the resulting number by
				four, and multiplying this with the normalized storage bid.
(k) The Board, or its designee, may request
				evidence of continued availability and operation of storage facilities, as a
				prerequisite for continued qualification for the adder specified at (j) above.
				Board staff is authorized to amend the SREC-II value for the associated solar
				facility to compensate for overpayment of any SREC-II adders that were paid
				while a storage facility was not in operation.