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
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.
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
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
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
NJCEP Funding Levels; CRA 2004 Year New Jersey s Clean Energy Program 2005 2008 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 2008 1% rate impact over 4 years
NJCEP 2007 RE Budget www.bpu.state.nj.us Clean Energy Board Orders
2007 CORE Budget Allocation
CORE Commitments, January 07
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.
New Jersey s Net Metering and Interconnection Standards Revised from Interim in September 2004 All Class I Renewables; Up to 2 MW @ 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
NJ s RPS Revised from Interim April 2004 Energy Year Solar PV RE Class I June May 31, XX % MWac % MWac 2005 0.01 4 0.74 1.6 2006 0.017 4 0.983 19 2007 0.0393 14 2.037 38 2008 0.0817 27 2.924 66 2009 0.16 39 3.84 89
NJ Solar REC Market First Years Results Energy Year 2005: March 04 thru May 31, 2005 3,422 SRECs retired toward 4,822 required 2640 SACPs Payments Made for $792,000 Energy Year 2006: June 1, 2005 thru May 31, 2006 10,723 SRECs retired toward 10,450 required 163 SACPs Made for $48,900 Price and Trading History posted to NJCEP.com
NJ Solar REC Market First Year Trading Results
NJ Solar REC Market Current Year Trading NJ SR EC Program: R eporting Year 2007 Trading Statistics # SRECs Traded in Month Cumulative #SRECs Traded Cumulative Weighted Average Price ($/MWh) Monthly High ($/MWh) Monthly Low ($/MWh) Cumulative High ($/MWh) Cumulative Low ($/MWh) Month / Year Jul-06 237 237 $218.60 $240 $150 $240 $150 Aug-06 131 368 $213.77 $235 $150 $240 $150 Sep-06 747 1115 $206.08 $255 $174 $255 $150 Oct-06 464 1579 $205.99 $250 $160 $255 $150 Nov-06 1022 2601 $197.89 $260 $110 $260 $110
New Jersey s Clean Energy Program Next Steps Transition to NJCEP Market Managers 1-866-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
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: $?
New Jersey s Integrated Approach More Information New Jersey s Clean Energy Program: www.njcleanenergy.com New Jersey BPU www.bpu.state.nj.us Evaluation Reports: Rutgers Center for Energy, Economics and Environmental Policy (CEEEP) http://policy.rutgers.edu/ceeep/images/nj_r EMA_Final_8-04.pdf
YOUR POWER TO SAVE Energy, Money and the Environment Visit: NJCleanEnergy.com