NEW JERSEY TREC SOLAR INCENTIVE PROGRAM
A ROBUST FINANCIAL ENGINE FOR CLEAN ENERGY PROJECTS
The NJ Transitional Renewable Energy Certificate (TREC) was launched by the Board of Public Utilities in May 2020 to fill the void created by the closure of the existing program. Under the TREC program, solar installations are eligible for a fixed renewable energy incentive for 15 years.
The TREC program prioritizes investment in commercial/industrial development versus converting open space to support solar installations. The financial benefit can be tailored to drive a significant reduction in energy costs or an incremental revenue stream.
INDUSTRY UPDATE:
The sunsetting of the NJ TREC solar program
On Wednesday, April 7, the NJ Office of Clean Energy issued a strawman regarding the sunsetting of the TREC program. The existing TREC program has a value of $152 per MWh of solar production.
The proposed strawman is at $85 per MWh, a decrease of 44% in economic value. The strawman may go through some change based on industry comment, however one outcome seems clear. The value of the new REC is likely to be significantly lower than the value of the TREC.
What should you do?
If you are considering a solar project it is critical to move quickly to select a solar developer and complete a submission for a TREC registration. Once you have TREC registration approval, you will have 12 months to complete construction and energize the system.
If you have a desire to move quickly to leverage this transitional opportunity just hit the link below to learn more and to connect with our team!
HOW DOES THE NJ TREC SOLAR INCENTIVE STRUCTURE PROVIDE A GUARANTEED 15-YEAR FINANCIAL RETURN?
The TREC incentive of $152 (15.2c per kWh) is guaranteed by the state of New Jersey for 15 years for the total output of the solar installation. Unlike previous solar incentive programs in NJ, the TREC incentive is a fixed, consistent financial engine that produces clearly defined long term project economics.
Brightcore President Mike Richter and Co-CEO Rob Krugel discuss this topic in the first video in our Solar Series.
HOW DOES THE NJ TREC PROGRAM ELIMINATE OWNER CONCERN FOR TENANT VACANCY RISK?
The current NJ TREC Solar incentive of $152 (15.2c per kWh) enables any building owner to offset vacancy risk, up to a completely empty building. Although the indicative economics of solar installation is extremely attractive, millions of square feet remain on the sideline because of the concern for triple net lease complexity and potential space vacancy.
Brightcore President Mike Richter and Co-CEO Rob Krugel discuss this topic in the second video in our Solar Series.
MORE FREQUENTLY ASKED QUESTIONS ABOUT THE NJ TREC SOLAR PROGRAM
HOW CAN THE NJ TREC SOLAR PROGRAM FUND YOUR NEW ROOF REPLACEMENT?
The current NJ TREC Solar program can provide significant capital to completely offset roof replacement or repair costs. Many clients have been deterred from installing solar due to concerns regarding roof condition or warranty. That has changed.
HOW CAN PARKING LOTS BE TRANSFORMED INTO AN INCOME PRODUCING SOLAR CANOPY?
The current NJ TREC solar program provides an incentive for both canopy and rooftop applications. In large parking lots, they can deliver significant energy production while also providing shade and protection from the elements.