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New Jersey Clean Energy Program

New Jersey Clean Energy Program. Renewable Energy Programs and Policies. New Jersey Clean Energy Program. Societal Benefits Charge for EE and RE (~$125M/year) NJBPU - oversight Office of Clean Energy- serves as the state energy office and administers the NJCEP program funds.

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New Jersey Clean Energy Program

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  1. New Jersey Clean Energy Program Renewable Energy Programs and Policies New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  2. New Jersey Clean Energy Program • Societal Benefits Charge for EE and RE (~$125M/year) • NJBPU - oversight • Office of Clean Energy- serves as the state energy office and administers the NJCEP program funds. • New Jersey Clean Energy Council – advisory to Board and Board staff • BPU administers and implements the renewable energy programs. • Energy efficiency programs are transitioning to the BPU • Implementation contractors – “feet on the street” • Growing number of State agency partners. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  3. Renewable Energy Program CORE Program: The Customer Onsite Renewable Energy Program provides rebates of up to 70% of the installed cost for renewable energy systems such as solar, wind and sustainable biomass systems. Projects up to 1 MW. REAP Program: The Renewable Energy Advanced Power Program provides incentives and financing for renewable electricity generation facilities. Projects over 1MW. REED Program: The Renewable Energy Economic Development Program provides incentives, business loans and comprehensive business assistance to renewable energy companies for growing their business and employment in New Jersey. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  4. Renewable Program Plan 2004 • CORE $44 M • REAP $16 M • REED $6.35 M • FREE $6.3 M • REDO $6 M • Demonstration Program $2M • Manufacturing Incentive $2M New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  5. CORE Program • Program transitioned to BPU administration and implementation in April 2003. • Solar systems since then, 22+ MW commitments average of 200 kW per week. 1.685 MW of biomass and 305 kW wind. • Actually Installed: Solar 2.4 MW, Wind ~ 30.4 kW, Biomass 300 kW, Fuel Cell 900 kW • Up to 70% of installed cost for systems smaller than 10 kW, up to 60% for systems larger than 10kW up to 1 MW for solar. Biomass and wind up to 60% for < 10kW and 30% for >10kW. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  6. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  7. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  8. REAP Program • Provides combination of grants and guaranteed low interest long term financing for renewable electricity generating facilities in New Jersey. • Wind, Solar and Sustainable Biomass. • $50 Million budget for 2004. • Solicitation on njcep.com. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  9. REED Program • 1st Solicitation issued in Feb. ’03 • Received 33 proposals, totaling ~ $12M • 10 renewable energy companies received $2.7 M for manufacturing innovation, commercialization efforts and product financing. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  10. REED for 2004 • Funding will be given as “venture funds” • As the firm starts making a profit, the “grant” is paid back. • $5M in funding, solicitation issued in November ‘03 New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  11. Financing Programs • Two new financing programs complement the rebate and incentive programs. • Loan guarantees for businesses implementing renewable energy and energy efficiency projects • Loan pool for local government units and schools. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  12. Using Policy as a Driver • RPS doubling for 2008 • Solar requirement of 120,000 MWh by 2008 translates into roughly 90 MW • Simplified interconnection • Increased capacity limit for net metering New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  13. Renewable Portfolio StandardSolar Requirement • Requirement for all electric suppliers. • Ramping up requirement 2004 through 2008 • Renewable Energy Certificates - attributes • Alternative Compliance Payment set by BPU. • Published Oct. 6 for public comment, promulgated March 17, 2004. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  14. Net Metering and Interconnection • Updating net-metering and interconnection standards (subchapter 9). • Increasing net-metering capacity to 2 MW from 100 kW. • Making interconnection processes, simplified, transparent and time delimited. • Due to be published in early November 2004. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  15. Introducing the SREC • A solar renewable energy certificate (SREC) and is the “attribute” of solar electric generation, unbundled from the actually delivered energy; and is measured in 1 SREC/MWh. • Solar electric generation is electricity from photovoltaics or other solar technologies. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  16. SREC Requirement by Year • EY 2004 0.0100% ~3.6 MW • EY 2005 0.0170% ~ 6.12 MW • EY 2006 0.0393% ~ 22.5 MW • EY 2007 0.0816% ~ 46.7 MW • EY 2008 0.1600% ~ 90 MW New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  17. The SREC Market • The BPU set an alternative compliance payment for SRECs of $300 per MWh or $0.30 per kWh. • This puts a ceiling on the price of the SREC. • The prices will vary, but the expected price for 2004 should be between $0.10 - $0.25. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  18. How it Works • Customer-generators with solar systems can request a SREC after they generate one or more MWhs. • The administrator, through an online registry, will set up an account for SREC holders. • SREC buyers will make offers $ to SREC holders. • SREC holders can sell when they are satisfied with an offer. • The administrator will verify the generation and the sales. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  19. Financial Example • A 100 kW Solar energy system costs $650,000, the systems receives a rebate of $390,000 (60%) for a system cost of $260,000. • The energy savings over 30 years are $526,830. • SREC value adds an additional $51,650 in the first five years for total revenues of $578,480 • Net profit is $318,480 or 122% ROI • First five years: $61,980 energy savings + $51,650 SREC = $113,630. New Jersey Clean Energy Symposium Rowan University - June 18, 2004

  20. Resources Renewables www.njcep.com --Subscribe to the list serve!!!!! Energy Efficiency www.njcleanenergy.com Office of Clean Energy www.bpu.state.nj.us B. Scott Hunter New Jersey Board of Public Utilities Office of Clean Energy Benjamin.hunter@bpu.state.nj.us New Jersey Clean Energy Symposium Rowan University - June 18, 2004

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