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.
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1 TREC is created for every 1 megawatt-hour (MWh), or 1,000 kilowatt-hours (kWh), of electricity generated
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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.