Depending on the date they registered their solar system, some Sol Systems customers in New Jersey may notice that their system is eligible to generate TRECs instead of SRECs.
The New Jersey Clean Energy Act of 2018 directed the New Jersey Board of Public Utilities (NJBPU) to adopt rules and regulations to “close the SREC Registration Program (SRP) to new registrations once 5.1% of the kilowatt-hours sold in the State are generated by solar electric power connected to the distribution system” (known as the 5.1% Milestone). In December 2019, the Transition Incentive (TI) Program was established by a Board Order to provide a bridge between the SREC Registration Program (SRP) and its successor program; this included the creation of fixed-price Transition Renewable Energy Certificates, or TRECs (pronounced /tee-reks/).
Solar producers participating in New Jersey’s Transition Incentive program generate TRECs by submitting their solar meter reading each month. Similar to SRECs, one TREC is created when a solar generator creates 1 MWh (or 1,000 kWh) of electricity. Once a TREC is generated by your system, it is sold on a quarterly basis to one of the electric utilities in New Jersey separate from the actual electricity produced. The number of TRECs generated is not affected by net metering or the amount of electricity used on-site.
The NJ Transition Incentive Program was closed to new applications as of August 27th, 2021.
For more information about the NJ Transition Incentive Program, please consult these FAQs.
