The incredibly successful New Jersey SREC program is being replaced by a new and improved Transition Renewable Energy Certificates, or TREC system. SRECs were one of the most widely used solar programs in NJ. New Jersey has historically been one of the most progressive, and advanced states for solar energy. With the transition to the NJ TREC program, there are still several renewable energy incentives available to state residents, business owners, and municipalities. As you prepare for the rollout of the Transition Renewable Energy Certificate program, there are several changes all NJ residents need to know. Read on to learn about what to know about NJ Transition Renewable Energy Certificates (TRECs).
Transition Renewable Energy Certificates Pricing Structure
Arguably, the largest change associated with the NJ’s new Transition Renewable Energy Certificates program is the pricing structure. Solar Renewable Energy Credits, or SRECs were traditionally based on a variable pricing structure. Their value was dependent of the market supply and demand at the time when you sold certificates. The new Transition Renewable Energy Certificates on the other hand, have a fixed price over the course of the TREC program. With this new fixed pricing structure, your accumulated value of energy certificates becomes much easier to accurately calculate. As you prepare for the roll-out of the new TREC program in New Jersey, be sure to familiarize yourself with the new fixed pricing structure.
One of the major differences between SRECs and NJ TRECs is the concept of factorization. Under the SREC system, the energy credit value was the same regardless of the type, size, and scope of system you install. Projects that receive a factor of one, receive the full value of a TREC. Currently, this is available for landfill, brownfield, and net metered non-residential roof or carport solar installations. Net metered, residential installs that are rooftop, carport, or ground mounted receive a factor of 0.6. Community solar installation projects are able to receive a factor of 0.85 under the new NJ Transition Renewable Energy Certificates system. As you learn about the new NJ TREC system, be sure to consider the factor you qualify for.
The Actual Worth Of TRECs
With the NJ TREC program officially underway, we can now effectively calculate the worth of a Transition Renewable Energy Certificate. The value of a full TRECs was set at $152 over the course of the fifteen year program. However, your factorization will greatly influence the value you are able to receive. Residential installations, for example, only qualify for 0.6 factor for energy certificates. Therefore, they will only be able to claim $91.20 for each TREC redeemed. Commercial installations, on the other hand, are able to earn a full TREC with a value of $152, every time they store a full MWh of energy. A Transition Renewable Energy Certificate, or factor of a certificate, is earned every time a MWh is generated. The larger the scope, capacity, and efficiency of your solar system will largely impact the amount of energy certificates you can earn on an annual basis. As you prepare for the launch of the New Jersey Transition Renewable Energy Certificates program, consider the actual worth for TRECs.
The Availability Of Alternate Solar Incentives
While the rollout of the NJ TREC program also means the end of the former Solar Renewable Energy Credit, or SREC program, there are still several other renewable energy incentives you can qualify for. Still, one of the most widely used clean energy incentives is the Federal Investment Tax Credit, or ITC. The Federal ITC offers a tax credit on up to 26% of you system installation in 2020. At the same time, when installing a solar system in New Jersey, your system expenses are 100% exempt from sales tax, as well as additional increases in your property taxes. Even more, you can still participate in the New Jersey Net Metering Program, which allows you to sell excess energy back to the grid utility at retail prices. Even with the launch of the TREC program, there are still several NJ solar panel incentives that you qualify for.
Additional Transition Renewable Energy Certificates Support
As the TREC program rolls out, you have several additional layers of solar energy support. One of you best resources is access to experienced New Jersey solar installation professionals. NJ solar companies are experienced in the various renewable energy rebates, incentives, tax credits, and certificate programs offered in the state. They can answer your additional questions, provide system suggestions, and offer comprehensive solar consultations. At the same time, experienced installation companies can help you develop a renewable energy plan to maximize the amount of TRECs you are able to collect. If you are still concerned about the changing NJ TREC program, look to experienced solar companies for continuous clean energy support.
New Jersey’s SREC program is transitioning to the new TREC, or Transition Renewable Energy Certificate program. To prepare for the rollout of the new TREC program, there are several changes you need to familiarize yourself with. One of the largest changes pertaining the New Jersey TREC program is associated with the shift from variable to fixed pricing. You additionally need to consider the idea of factorization in determining how many TRECs your property will qualify for. With factorization and fixed price structure, it is incredibly easy to calculate the actual worth of TRECs. At the same time, remember that there are several additional incentives, tax credits, and New Jersey solar rebates your property still qualifies for. Moreover, you can still access experienced solar support to learn more about the transition to the TREC program. Consider the points mentioned above to learn about what to know about NJ Transition Renewable Energy Certificates (TRECs).