Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

New Jersey Launching Community Solar Pilot Program

Author: Daniel T. McKillop

Date: August 28, 2018

Key Contacts

Back

The Community Solar Pilot Program is One Way that the State of New Jersey Plans to Meet its Clean Energy Goals

Community solar is one way that the State of New Jersey plans to meet its clean energy goals. Under the Community Solar Pilot Program, customers of an electric public utility could participate in a shared solar energy project that is remotely located from their properties, but is within their utility service territory, and obtain a credit to the customer’s utility bill equal to the electricity generated that is attributed to the customer’s participation in the solar energy project. The program would permit each customer to participate in a solar energy project with a capacity of five megawatts or less.

New Jersey Launching Community Solar Pilot Program
Photo courtesy of Samuel Zeller (Unsplash.com)

More than 17 states have already established programs that allow multiple subscribers to tap into solar arrays. The goal is to allow utility customers who have shaded roofs, those living in apartments that don’t allow the installation of solar panels, and low-income individuals who can’t obtain solar equipment for financial reasons, to reap the benefits of solar power.

The Board of Public Utilities (BPU or Board) is now tasked with drafting implementing regulations. Under the law establishing the Community Solar Pilot Program (A3723/S2314), the rules and regulations developed by the board must establish:

  • A capacity limit for individual solar energy projects to a maximum of five megawatts per project;
  • An annual capacity limit for all solar energy projects under the pilot program;
  • Geographic limitations for solar energy projects and participating customers;
  • A minimum number of participating customers for each solar energy project;
  • The value of the credit on each participating customer’s bill;
  • Standards to limit the land use impact of a solar energy project
  • The provision of access to solar energy projects for low and moderate-income customers;
  • Standards to ensure the ability of residential and commercial customers to participate in solar energy projects, including residential customers in multifamily housing;
  • Standards for connection to the distribution system of an electric public utility; and
  • Provisions to minimize impacts to the distribution system of an electric public utility.

BPU must also create standards and an application process for owners of solar energy projects who wish to be included in the Community Solar Energy Pilot Program. The standards must include, but need not be limited to, a verification process to ensure that the solar energy projects are producing an amount of energy that is greater than or equal to the amount of energy that is being credited to its participating customer’s electric utility bills pursuant to subsection b. of this section, and consumer protection measures. Projects approved by the BPU must have at least two participating customers. Under the law, BPU may also restrict qualified solar energy projects to those located on brownfields, landfills, areas designated in need of redevelopment, in underserved communities, or on commercial rooftops.

Within three years, the Community Solar Energy Pilot Program will be converted into a permanent program with a minimum annual goal of 50 megawatts. BPU staff have already started soliciting input from solar developers, utility officials, and clean energy advocates. For businesses, there are opportunities to participate in the New Jersey renewable energy program as both subscribers and solar array hosts. Given that open space is rare in many areas of the state, the rooftops of commercial buildings and similar unused outdoor areas may be prime locations for community solar arrays.

If you have any questions, please contact us

If you have any questions or if you would like to discuss the matter further, please contact me, Dan McKillop, at 201-806-3364.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business post image

The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business

Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]

Author: Dan Brecher

Link to post with title - "The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business"
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies post image

Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies

The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]

Author: Brian D. Spector

Link to post with title - "Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies"
How Understanding Bankruptcy Trends Can Benefit Your Business post image

How Understanding Bankruptcy Trends Can Benefit Your Business

The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]

Author: Brian D. Spector

Link to post with title - "How Understanding Bankruptcy Trends Can Benefit Your Business"
SEC Takes Actions Against Issuers for Failure to File Form D post image

SEC Takes Actions Against Issuers for Failure to File Form D

In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]

Author: Kenneth C. Oh

Link to post with title - "SEC Takes Actions Against Issuers for Failure to File Form D"
Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda post image

Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda

On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]

Author: Matthew F. Mimnaugh

Link to post with title - "Redefining Labor Relations: NLRB's Pivot from Abruzzo’s Memoranda"
What Are FIRPTA Withholding Requirements? post image

What Are FIRPTA Withholding Requirements?

If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]

Author: Jesse M. Dimitro

Link to post with title - "What Are FIRPTA Withholding Requirements?"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!

Please select a category(s) below: