New Jersey’s recently revised Renewable Portfolio Standard (RPS) requires that electricity suppliers provide a percentage of their electricity sales from solar generation. In order for electric suppliers to meet this mandate, the Board of Public Utilities is requiring that they use the SREC system. New Jersey has developed an SREC program that provides a means for solar certificates to be created, verified, tracked, sold to, and eventually retired by electric suppliers to meet their solar RPS requirement.
The Office of Clean Energy (OCE) has established a website to serve as the registry where all solar energy system owners in New Jersey have an electronic account for their SRECs. Owners with solar energy systems larger than 10 kW can upload their monthly meter readings through the website and have their accounts credited with the SRECs.
Once the account is credited, the owner of the solar energy electric system can use an electronic bulletin board on the OCE website to let others know they have SRECs for sale. Interested buyers use the registry’s bulletin board to make a request to purchase these SRECs. After buyers and sellers contact each other offline to work out an agreeable sale, the seller will use the website to transfer SRECs to the buyer. Electricity suppliers will also use the website to retire SRECs that have been used to meet their RPS electricity sales requirements.
If an electricity supplier cannot meet their RPS requirement through solar generation or the purchase of SRECs, they must make an Alternate Compliance Payment (ACP). Because SRECs are less expensive to purchase, electricity suppliers will attempt to buy them from the open market before they are forced to pay a higher fee for ACPs.
Call Entech, your NJ solar energy experts today at 800.571.8661 or complete our solar energy quote form to get your system working for you, your wallet, and your environment.