Solar Energy Shines Bright with Incentives in New Jersey
New Jersey has long been considered one of the country’s powerhouses in solar energy, with an estimated one gigawatt of solar capacity installed. It is no surprise either, considering the wealth of incentives (such as programs, credits, and benefits). However, for companies interested in soaking up all these solar incentives, time is running out.
The Transition Renewable Energy Certificates (TRECS), which replaced the Solar Renewable Energy Certificate (SREC) market, are a temporary intermediate incentive. Quite simply, the TRECs program was not created to last a long time; neither will its benefits.
Similar to SRECs, the TRECs are based on the production of a solar panel system, and receive certificates based on megawatt-hour (MWh) of solar production. However, the SRECS and TRECs are different in two specific ways: fixed versus variable pricing, and factorization.
SREC prices were variable, and their value depended on supply and demand of the market at the time of its sale. However, TRECS, have a set price for the duration of the program. The value of a full TREC is fixed at $152 for 15 years.
When considering factorization, the value of a single SREC would be the same regardless of the type of solar panel system. TRECs, on the other hand, have a varying incentive depending on the type of installation. For example, net metered, non-residential rooftop or carport have a factor of 1; yet net metered, non-residential ground mount have a factor of 0.6.
What does all this mean?
To put it simpler terms: the TRECs program creates incredible benefits for companies throughout the Garden States. However, it will not last long. If companies are interested in reaping the incentives from this program, it is imperative to act before the year ends.
Of course, solar energy production varies from system to system, and how much you can earn with TRECs will depend on your system size, the quality of your solar equipment, how much sunlight hits your solar panels, and more. The best way to get a quality estimate for TREC benefits is to compare multiple options; or contact us today for a free, preliminary analysis.