---
title: "New Jersey: What is a TREC?"
description: A Transition Renewable Energy Certificate (TREC) is a solar incentive available to certain solar systems in New Jersey. Depending on when your solar system was registered, your system may be eligible to generate TRECs instead of SRECs.
---

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# New Jersey: What is a TREC?

## A Transition Renewable Energy Certificate (TREC) is a solar incentive available to certain solar systems in New Jersey. Depending on when your solar system was registered, your system may be eligible to generate TRECs instead of SRECs.

#### **Why does New Jersey have TRECs instead of SRECs?**

The **New Jersey Clean Energy Act of 2018** directed the New Jersey Board of Public Utilities (NJBPU) to close the **SREC Registration Program (SRP)** to new systems once **5.1% of the electricity sold in the state** was generated by distributed solar (the **5.1% Milestone**).

In **December 2019**, the NJBPU created the **Transition Incentive (TI) Program** to serve as a bridge between the SREC program and its successor. As part of this transition, **Transition Renewable Energy Certificates (TRECs)** were introduced.

#### **How are TRECs created?**

Solar systems participating in New Jersey’s **Transition Incentive Program** generate TRECs by **submitting solar meter readings each month**.

- **1 TREC is created for every 1 megawatt-hour (MWh), or 1,000 kilowatt-hours (kWh), of electricity generated**
- TRECs are generated based on **total system production**, not electricity usage

#### **How are TRECs sold?**

Once a TREC is generated, it is **sold monthly to one of New Jersey’s electric utilities**, separate from the sale or use of the electricity produced by your system.

The number of TRECs generated is **not affected by net metering or on-site electricity consumption**.

#### **Is the Transition Incentive Program still open?**

No. The **New Jersey Transition Incentive Program closed to new applications on August 27, 2021**.

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