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New Jersey SRECs 101

New Jersey has been an early national leader in solar energy deployment. Its Solar Renewable Energy Certificate (SREC) market has historically been one of the most aggressive in the country, driven by a strong Renewable Portfolio Standard (RPS).

What is New Jersey’s Renewable Portfolio Standard (RPS)?

New Jersey’s RPS requires that:

  • 35% of the state’s electricity come from renewable sources by 2025

  • 50% of electricity come from renewable sources by 2030

Solar energy plays a key role in meeting these targets.

What is the Solar Alternative Compliance Payment (SACP)?

The Solar Alternative Compliance Payment (SACP) is a penalty paid by compliance buyers if they do not procure enough solar credits to meet state requirements.

  • The SACP is reviewed annually by the New Jersey Board of Public Utilities (NJBPU)

  • It is set higher than the expected market price of an SREC

  • For the 2025 energy year, the SACP is $208 per megawatt-hour (1,000 kWh)

Is the New Jersey SREC market still open?

No.

  • The NJ SREC program closed to new systems in April 2020

  • Systems that registered before closure may continue selling SRECs for a 10-year eligibility period

What programs replaced New Jersey SRECs?

Transition Renewable Energy Certificates (TRECs)

  • Immediately succeeded the SREC program

  • Allowed eligible systems to sell credits for 15 years

  • Closed to new registrations in August 2021

Successor Solar Incentive (SuSI) Program

The SuSI Program aims to install 3,750 MW of solar by 2026.

  • New residential systems may participate in the Administratively Determined Incentive (ADI) sector

  • ADI customers can sell credits for a 15-year term

How long can SRECs be sold in New Jersey?

  • SRECs up to five years old may be sold in the New Jersey market, subject to program rules

What is required to register a New Jersey solar system?

Before Sol Systems can register your system, customers must provide:

  • A signed interconnection agreement

  • A signed contract

  • A New Jersey Certification Number

Who completes New Jersey registration?

  • Residential system installers submit registration to the New Jersey Clean Energy Program

  • Registration must be submitted within 14 business days of contract execution

  • If submitted on time, all generation from interconnection onward is eligible for SRECs

Customers must provide their New Jersey Certification Number to Sol Systems for registration in PJM’s Generation Attribute Tracking System (GATS).

How are SRECs created and tracked?

  • Sol Systems registers eligible systems with GATS, which is responsible for minting SRECs

  • All New Jersey systems must report generation using a dedicated revenue-grade solar meter

  • Customers may:

    • Report meter readings manually, or

    • Provide remote monitoring access to Sol Systems

Does Sol Systems charge a registration fee?

No. Sol Systems does not charge a registration fee.