N.J. Admin. Code § 14:8-11.6

Current through Register Vol. 56, No. 21, November 4, 2024

Section 14:8-11.6 - New Jersey SREC-II value

(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.

N.J. Admin. Code § 14:8-11.6

Amended by 55 N.J.R. 2555(a), effective 12/18/2023