CSG Law Alert: NJBPU Opens New Capacity Block for Community Solar and Reduces Value of Solar Renewable Energy Credit
The New Jersey Board of Public Utilities (“NJBPU”) issued an order on April 23, 2025 (the “Order”), expanding capacity under the New Jersey Community Solar Energy Program (“CSEP”) to include an additional 250MW(dc) for energy year 2025 to be allocated among the four regulated utilities based on average percentages of their respective retail electric sales in the state.
The Order directs the NJBPU to begin accepting applications on April 30, 2025, on a first-come, first-served basis; however, applications submitted prior to 11:59:59 p.m. on May 13, 2025 will be considered to have been submitted at the same time. If applications received exceed the target capacity for a particular utility, applications with the highest guaranteed bill credit discount receive priority, with a required minimum credit of 20%. In the event multiple projects offer the same guaranteed credit discount, the project submitted first will be reviewed first.
In addition to the new 250MW(dc) in capacity, the order directs the NJBPU to accept applications for the unused allocation from the last round of applications. The available capacity for each utility, including the unused and new capacity allocations are as follows:
1. JCP&L 216MW
2. PSE&G 431MW
3. Atlantic City Electric 90MW
4. Rockland Electric 13MW
Further, the Order reduces the value of solar renewable energy credits for community solar projects from $90 per MWh to $80 per MWh for newly approved projects.
In addition, the Order clarifies in lieu of obtaining a letter of support from the municipal counsel or mayor of the municipality in which the project is located, applicants may meet the Community Engagement and Subscriber Acquisition Plan requirement by providing evidence of submission to the municipal clerk a certified letter stating the developer intends to construct the community solar project and how it will engage the municipality and local organizations to enroll residents as community solar subscribers.
For more information regarding the Order, community solar, or assistance in putting together an application for approval, please contact a member of our Renewable Energy & Sustainability Team: Stephen A. Kisker, Amy Howlett and John G. Valeri.