New Jersey Solar Roundtable

Transcription

1 New Jersey Solar Roundtable Transition to a Market-based REC Financing System Scott Hunter, Renewable Energy Program Administrator NJBPU, Office of Clean Energy Presented at New Jersey Institute of Technology Eberhardt Hall, Room 112 February 22, 2007

2 New Jersey s Clean Energy Program - An Integrated Approach to Market Building A statewide initiative administered by the New Jersey Board of Public Utilities that promotes energy efficiency and renewable energy for all New Jersey ratepayers; residences, businesses, schools and municipalities.

3 New Jersey Solar PV Today Fastest Growing and Second Largest in the US $14,000,000 CORE Solar Expenditure$ Data from Jan '05 through Dec.'06 (with forecast trend through April 2007) $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Jan. '05 Mar May Jul Sep Nov. Jan. 06 Mar. '06 May '06 July '06 Sep. '06 Nov. '06

4 Key Elements of the Electric Discount and Energy Competition Act of 1999 (EDECA) Comprehensive Resource Assessment (CRA) - a public program planning tool Societal Benefits Charge (SBC) Net Metering & Interconnection Standards Renewable Portfolio Standard

5 NJCEP s Integrated Approach Applied A Typical 10 kw Residential Solar Electric System Installed Cost: $77,500 NJCEP Rebate: $38,000 Federal Tax Credit: $2,000 Insert Residential Home Electric cost savings (net metering) : $1,650 / yr SREC Income: (RPS) $2,160 / yr Out of Pocket Expense: $37,500 Payback Period: < 10 yrs Total Annual Savings: $3,810

6 NJCEP Funding Levels; CRA 2004 Year New Jersey s Clean Energy Program SBC Funding Non-bypassable fee on all electric and natural gas customers Total EE % RE % 2005 $140 $103 74% $37 26% 2006 $165 $113 68% $52 32% 2007 $205 $123 60% $82 40% 2008 $235 $133 56% $102 44% Total $745 $472 63% $273 37% 44% for electric EE 17% for NG EE 37% for RE $18/yr/HH for electric and $14/yr/HH for natural gas in % rate impact over 4 years

7 NJCEP 2007 RE Budget Clean Energy Board Orders

8 2007 CORE Budget Allocation

9 CORE Commitments, January 07

10 Customer Onsite Renewable Energy Program: CORE Rebates Reduces the installed cost of Class I Renewable Energy Systems: Solar Photovoltaics, Wind Turbines, Landfill Gas Turbines, Fuel Cells Rebate provided after installation & inspection Calculated with descending tiers based on system capacity Capacity limited to annual electricity use and/or 10 kw cap for residential Only New Equipment System warranty > 5 years Proposed: Subsidized equipment must stay in the state for 10 yrs.

11 New Jersey s Net Metering and Interconnection Standards Revised from Interim in September 2004 All Class I Renewables; Up to 2 100% of Annual Electric Consumption Commercial Businesses Up to 10 MW peak load Projects < 10 kw Inverter-based - No fee Reduced barriers Set timeframes for review

12 NJ s RPS Revised from Interim April 2004 Energy Year Solar PV RE Class I June May 31, XX % MWac % MWac

13 NJ Solar REC Market First Years Results Energy Year 2005: March 04 thru May 31, ,422 SRECs retired toward 4,822 required 2640 SACPs Payments Made for $792,000 Energy Year 2006: June 1, 2005 thru May 31, ,723 SRECs retired toward 10,450 required 163 SACPs Made for $48,900 Price and Trading History posted to NJCEP.com

14 NJ Solar REC Market First Year Trading Results

15 NJ Solar REC Market Current Year Trading NJ SR EC Program: R eporting Year 2007 Trading Statistics # SRECs Traded in Month Cumulative #SRECs Traded Cumulative Weighted Average Price ($/MWh) Monthly High ($/MWh) Monthly Low ($/MWh) Cumulative High ($/MWh) Cumulative Low ($/MWh) Month / Year Jul $ $240 $150 $240 $150 Aug $ $235 $150 $240 $150 Sep $ $255 $174 $255 $150 Oct $ $250 $160 $255 $150 Nov $ $260 $110 $260 $110

16 New Jersey s Clean Energy Program Next Steps Transition to NJCEP Market Managers NJSMART Public input for New Jersey s Energy Master Plan Transition solar market to SREC based market Integrate EE and RE Program Delivery Continuous Assessment and Evaluation toward Energy Market Transformation

17 NJCEP s Integrated Approach in the future A Typical 10 kw Residential Solar Electric System NJCEP Rebate: $? Federal Tax Credit: $? Installed Cost: $? Insert Residential Home Electric cost savings (net metering): $?/ yr SREC Income: (RPS) $? / yr Out of Pocket Expense: $? Payback Period: < 10 yrs Total Annual Savings: $?

18 New Jersey s Integrated Approach More Information New Jersey s Clean Energy Program: New Jersey BPU Evaluation Reports: Rutgers Center for Energy, Economics and Environmental Policy (CEEEP) EMA_Final_8-04.pdf

19 YOUR POWER TO SAVE Energy, Money and the Environment Visit: NJCleanEnergy.com