Implementation of the Solar RPS in New Jersey

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Implementation of the Solar RPS in New Jersey
Clean Power Markets

• ABA Renewable Energy Panel
• November 16, 2005
• Jan Pepper

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NJ Class I and Class II

• Class I
• solar, wind, geothermal, wave, tidal, landfill
  gas, fuel cells, sustainable biomass
• Class II
• Hydro, resource recovery facilities

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NJ RPS Requirements
Reporting Year Solar Electric Generation (SRECs) Class I Renewable Energy Class II Renewable Energy Total Renewable Energy
6/04 - 5/05 0.01 0.74 2.5 3.25
6/05 - 5/06 0.017 0.983 2.5 3.5
6/06 - 5/07 0.0393 2.037 2.5 4.5763
6/07 - 5/08 0.0817 2.294 2.5 5.057
5/08 - 6/09 0.16 3.84 2.5 6.5
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Compliance with Solar Component

• New Jerseys renewables portfolio standard (RPS)
  requires electricity suppliers to use solar
  energy to generate a certain percentage of their
  power. Solar Renewable Energy Certificates
  (S-RECs) represent the renewable attributes of
  solar generation, bundled in minimum
  denominations of 1 megawatt-hour (MWh) of
  production. New Jerseys S-REC program provides a
  means for solar certificates to be created and
  verified, and allows electric suppliers to buy
  these certificates in order to meet their solar
  RPS requirements. All electric suppliers must use
  the S-REC program to demonstrate compliance with
  the RPS. New Jerseys on-line marketplace for
  trading S-RECs, launched June 25, 2004, is the
  first such operation in the world.  
• http//www.dsireusa.org/library/includes/maphomeow
  ner.cfm?StateNJCurrentPageId1

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Solar RECs

• To qualify for issuance of a solar REC, solar
  electric generation shall be produced by a
  generating facility that is interconnected with
  an electric distribution system that supplies New
  Jersey.
• Solar Alternative Compliance Payment 300/MWh
  (30 cents/kWh) - sets maximum value for SRECs
• CPM designed, built, and administers SREC
  registry, tracking, bulletin board for NJ BPU

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S-REC Process
PV System
Monthly Production
Create S-RECs (www.njcep.com/srec)
S-REC Account Owners Solar Facility Owners,
Aggregators, LSEs. Brokers

• Sell RECs
• Buy RECs
• Retire RECs (to meet RPS)
• Transfer RECs

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Program Highlights

• electronic accounts accessible from secure
  website
• signed attestations from owners
• upload meter / inverter readings/ automated data
  loggers OR use engineering estimates
• unique serialized SRECs issued monthly
• bulletin board facilitates trading
• escrow period provides small owners with control
  over payment

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Program Verification

• A critical component of a successful program is a
  proper verification process to assure credible
  RECs
• This is critical to maintain the integrity of the
  program and the integrity of the SREC market
• A signed attestation is required before SRECs are
  issued
• CPM audits facilities to check that
• Facilities are actually operating
• Reported meter readings are accurate
• Estimated production and actual production is
  within a reasonable margin of error

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How many account holders are there in SREC
program?
Type Number Percent of total
LSE 32 3.9
Broker 25 3.1
Solar facility 555 68.3
Aggregator 39 4.8
Other 162 19.9
TOTAL 813 100
As of Nov 8, 2005
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How many solar facilities are there in SREC
program?
Type Number Installed Capacity (DC kW)
Active 611 6991
Eligible, but not yet participating 239 2119
Total 850 9111
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How many SRECs were issued last year?
Reporting Year (June - May) of SRECs Issued of SRECs Traded of SRECs Retired
2005 3422 8998 3329
Reporting Year runs from June 1 to May 31, with a
true-up period until August 31
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What do SRECs sell for?
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Background Info on CPM

• Clean Power Markets Experience
• Build and operate Wisconsin RRC Program to track
  all renewables for RPS compliance and issue RECs
• Build and operate NJ SREC Program to track
  behind-the-meter systems for Class I RPS
  compliance and issue SRECs
• Build and operate tracking program for
  Connecticut Clean Energy Fund to manage RECs and
  report on program revenues
• Contact Jan Pepper [phone]
• www.cleanpowermarkets.com