New Jersey's Rapid Solar Expansion

New Jersey has developed a model that gives monetary value to a clean environment and stable energy prices, something the free market does not currently recognize.  

Starting in 2005 New Jersey's utilities were required to obtain 0.01% of their electricity from solar. Each year the amount they had to obtain went up, such that by 2009 they were required to obtain 90MW of electricity from Solar. All New Jersey electric suppliers are required to use the Solar Renewable Energy Certificate Program (SREC) to show compliance with this part of the State's renewable portfolio standard.

A Solar Renewable Energy Certificate is a tradable certificate that represents all the clean energy benefits of electricity generated from your solar electric system. An SREC can be sold or traded separately from the power. It is issued once a solar facility has generated 1000kWh (1MWh), through either estimated or actual metered production, and can be listed on the bulletin board at the SREC website.

SRECs can be bought by electricity suppliers, renewable energy marketers, private businesses and individuals interested in supporting the development of solar energy. A list of electric suppliers that are required to purchase SRECs, interested 'aggregators' and brokers is available on the SREC website periodically to update buyers and sellers of the going price.

This means the utilities are competing with other buyers to purchase the SREC's, which increases their value. By adding value through the certificate program there is a much greater incentive to invest in solar for your home or business because the revenue generated from the sale of the SREC's brings a more rapid return on investment.

There are also financial incentives for purchasing New Jersey made solar panels inverters and racking systems. Since the program started New Jersey went from six installations state wide to (According to the New Jersey Clean Energy Program) being the fastest growing market for solar installations in the country.