New Jersey Clean Energy Program

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New Jersey Clean Energy Program

• Renewable Energy
• Programs and Policies

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New Jersey Clean Energy Program

• Societal Benefits Charge for EE and RE
  (125M/year)
• NJBPU - oversight
• Office of Clean Energy- serves as the state
  energy office and administers the NJCEP program
  funds.
• New Jersey Clean Energy Council advisory to
  Board and Board staff
• BPU administers and implements the renewable
  energy programs.
• Energy efficiency programs are transitioning to
  the BPU
• Implementation contractors feet on the street
• Growing number of State agency partners.

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Renewable Energy Program

• CORE Program The Customer Onsite Renewable
  Energy Program provides rebates of up to 70 of
  the installed cost for renewable energy systems
  such as solar, wind and sustainable biomass
  systems. Projects up to 1 MW.
• REAP Program The Renewable Energy Advanced Power
  Program provides incentives and financing for
  renewable electricity generation facilities.
  Projects over 1MW.
• REED Program The Renewable Energy Economic
  Development Program provides incentives, business
  loans and comprehensive business assistance to
  renewable energy companies for growing their
  business and employment in New Jersey.

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Renewable Program Plan 2004

• CORE 44 M
• REAP 16 M
• REED 6.35 M
• FREE 6.3 M
• REDO 6 M
• Demonstration Program 2M
• Manufacturing Incentive 2M

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CORE Program

• Program transitioned to BPU administration and
  implementation in April 2003.
• Solar systems since then, 22 MW commitments
  average of 200 kW per week. 1.685 MW of biomass
  and 305 kW wind.
• Actually Installed Solar 2.4 MW, Wind 30.4 kW,
  Biomass 300 kW, Fuel Cell 900 kW
• Up to 70 of installed cost for systems smaller
  than 10 kW, up to 60 for systems larger than
  10kW up to 1 MW for solar. Biomass and wind up
  to 60 for lt 10kW and 30 for gt10kW.

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REAP Program

• Provides combination of grants and guaranteed low
  interest long term financing for renewable
  electricity generating facilities in New Jersey.
  
• Wind, Solar and Sustainable Biomass.
• 50 Million budget for 2004.
• Solicitation on njcep.com.

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REED Program

• 1st Solicitation issued in Feb. 03
• Received 33 proposals, totaling 12M
• 10 renewable energy companies received 2.7 M for
  manufacturing innovation, commercialization
  efforts and product financing.

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REED for 2004

• Funding will be given as venture funds
• As the firm starts making a profit, the grant
  is paid back.
• 5M in funding, solicitation issued in November
  03

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Financing Programs

• Two new financing programs complement the rebate
  and incentive programs.
• Loan guarantees for businesses implementing
  renewable energy and energy efficiency projects
• Loan pool for local government units and schools.

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Using Policy as a Driver

• RPS doubling for 2008
• Solar requirement of 120,000 MWh by 2008
  translates into roughly 90 MW
• Simplified interconnection
• Increased capacity limit for net metering

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Renewable Portfolio StandardSolar Requirement

• Requirement for all electric suppliers.
• Ramping up requirement 2004 through 2008
• Renewable Energy Certificates - attributes
• Alternative Compliance Payment set by BPU.
• Published Oct. 6 for public comment, promulgated
  March 17, 2004.

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Net Metering and Interconnection

• Updating net-metering and interconnection
  standards (subchapter 9).
• Increasing net-metering capacity to 2 MW from 100
  kW.
• Making interconnection processes, simplified,
  transparent and time delimited.
• Due to be published in early November 2004.

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Introducing the SREC

• A solar renewable energy certificate (SREC) and
  is the attribute of solar electric generation,
  unbundled from the actually delivered energy and
  is measured in 1 SREC/MWh.
• Solar electric generation is electricity from
  photovoltaics or other solar technologies.

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SREC Requirement by Year

• EY 2004 0.0100 3.6 MW
• EY 2005 0.0170 6.12 MW
• EY 2006 0.0393 22.5 MW
• EY 2007 0.0816 46.7 MW
• EY 2008 0.1600 90 MW

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The SREC Market

• The BPU set an alternative compliance payment for
  SRECs of 300 per MWh or 0.30 per kWh.
• This puts a ceiling on the price of the SREC.
• The prices will vary, but the expected price for
  2004 should be between 0.10 - 0.25.

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How it Works

• Customer-generators with solar systems can
  request a SREC after they generate one or more
  MWhs.
• The administrator, through an online registry,
  will set up an account for SREC holders.
• SREC buyers will make offers to SREC holders.
• SREC holders can sell when they are satisfied
  with an offer.
• The administrator will verify the generation and
  the sales.

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Financial Example

• A 100 kW Solar energy system costs 650,000, the
  systems receives a rebate of 390,000 (60) for a
  system cost of 260,000.
• The energy savings over 30 years are 526,830.
• SREC value adds an additional 51,650 in the
  first five years for total revenues of 578,480
• Net profit is 318,480 or 122 ROI
• First five years 61,980 energy savings
  51,650 SREC 113,630.

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Resources

• Renewables www.njcep.com
• --Subscribe to the list serve!!!!!
• Energy Efficiency www.njcleanenergy.com
• Office of Clean Energy www.bpu.state.nj.us
• B. Scott Hunter
• New Jersey Board of Public Utilities
• Office of Clean Energy
• Benjamin.hunter_at_bpu.state.nj.us