New Jersey

The New Jersey market has gone through lots of changes in the past decade. The current program is called the Administratively Determined Incentive (ADI) Program.

The ADI program is a part of New Jersey’s Successor Solar Incentive (SuSI) program. These SRECs are not market-based meaning they don't fluctuate. Each credit is $85 minus the broker fee.

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Market Segments and Incentive Values:

• Net-Metered Residential: Incentive values are set at $85 per SREC-II.
• Small Net-Metered Non-Residential (Rooftop, Carport, Canopy, Floating Solar): Projects smaller than 1 MW receive $110 per SREC-II.
• Large Net-Metered Non-Residential (Rooftop, Carport, Canopy, Floating Solar): Projects 1 MW to 5 MW receive $100 per SREC-II.
• Community Solar (Low-to-Moderate Income, LMI): Projects up to 5 MW receive $90 per SREC-II.
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In New Jersey, under the Administratively Determined Incentive (ADI) Program, Solar Renewable Energy Certificates (SREC-IIs) have a useful life of 15 years. This duration applies from the date the system receives its permission to operate (PTO) from the Electric Distribution Company (EDC). However, it's important to note the following:
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Commencing Construction: For a solar facility to be eligible for the ADI Program, it must not have started construction before being accepted into the program. Specifically, this means that the facility must not have received its Permission to Operate (PTO) from the Electric Distribution Company (EDC) before it is officially accepted into the ADI Program.

Solar facilities that obtain PTO prior to the issuance of the ADI acceptance letter will be required to petition the Board for eligibility in the ADI Program.

After 15 years of SREC-II through New Jersey’s Successor Solar Incentive (SuSI) program, projects may be eligible for a NJ Class I REC. These RECs are market-based and trade for between $30 and $50.
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Here’s a concise overview of the ADI Program SREC-II lifespan:

1. Useful Life: 15 years from the date of PTO.
2. Generation Start: Upon receiving PTO from the EDC.
3. Certificate Generation: Each SREC-II corresponds to one MWh of solar energy produced.
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This stability provides long-term certainty for solar project owners, making solar investments more attractive and predictable.