New Jersey May End State Solar Rebate Program to Grow Market Faster
In New Jersey, demand for solar installations is high, but 700 customers are on waiting lists for solar rebates, and some smaller installers are laying off workers while waiting for the rebates to be funded. So the state is considering moving to a system of energy credits that can be traded on the open market, according to a story today in the New York Times. That’s because, while New Jersey has grown its solar market, now it needs to grow it even faster.
- Solar must provide 2.12 percent of NJ electricity by 2020 to meet the state’s commitment, but is only providing only .07 percent thus far.
- The state has paid out $170 million in rebates and 3,100 solar systems have been installed.
- There is pressure to keep electricity rates from rising further, as NJ’s are some of the highest in the country, yet if rebates continue at the needed level, rates will rise even further. (Rebates are funded by surcharges on electrical rates.)
It is believed that energy credits would reward larger companies, allowing them to ramp up solar installations at a faster rate. This faster growth would also take the pressure off the state to supply rebate funds.
Image: Rob Bennett for The New York Times. Installing solar modules on the roof of Kohl’s
