New Jersey's net metering law, enacted in February 1999, requires that net metering be offered to residential and small commercial customers with photovoltaic and wind systems. To implement net metering, the NJ Board of Public Utilities (BPU) adopted "Interim Net Metering, Safety, & Power Quality Standards for Wind & Solar Photovoltaic Systems," which were finalized on June 6, 2001. Features of the June 6, 2001, ruling include the following points:  
 
1. Systems eligible for net metering are capped at 100 kW.  
2. Systems with a capacity of 10 kW or less (except those served by network distribution systems) must comply with all applicable safety and power quality standards as approved by the National Electrical Code (NEC), Institute of Electrical and Electronic Engineers (IEEE), and Underwriters Laboratories (UL), and specifically with IEEE Standard 929-2000.
3. Systems between 10 kW and 100 kW and those rated 10 kW and less and served by network distribution systems must comply with NEC, IEEE, and UL standards, and must also meet the requirements of electric distribution company tariffs, as approved by the NJ BPU.  
4. Utilities are prohibited from type testing inverters currently approved by UL, or requiring additional equipment.  
 
External disconnect switches are not required in the regulations, but individual utilities include this requirement in their interconnection guidelines. Such disconnects must be paid for by the customer. It is also significant to note that utilities are not bound to require that disconnects be placed near the customer’s meter or generation system, which can add to the installation cost if the disconnect is to be placed far from the system.  
 
In addition to expanding both system capacity and the scope of eligible technologies, the amendments to the 2004 net metering law will standardize and simplify interconnection procedures for residential and small-commercial customers. Three levels of interconnection will take effect.

Level 1 applies to inverter-based customer-generator facilities, which have power rating of 10 kW or less.

Level 2 applies to customer-generator facilities with a power rating of 2 MW or less and certified by a nationally-recognized testing and certification laboratory as meeting IEEE 1547 and UL 1741 for compliance for operation with an electric distribution system.

Level 3 applies to customer-generator facilities with a power rating of 2 MW or less, which do not qualify for either the Level 1 or Level 2 interconnection review procedures.  

New Jersey’s net metering law provides that the BPU shall develop safety and power quality interconnection standards for wind and solar photovoltaic systems that are eligible for net metering. In contrast to other recent states, the New Jersey net metering law does not simply adopt standards developed by national authorities, such as Underwriters Laboratories (UL) and the Institute of Electrical and Electronics Engineers (IEEE). Although the law states that the New Jersey interconnection standards "shall take into consideration the standards of other states and the Institute of Electrical and Electronic Engineers," this language potentially could allow for state-specific requirements that were inconsistent with UL and IEEE standards.

Interconnection applications and guidelines for the state’s distribution utilities (Conectiv, Rockland Electric, PSE&G, and Jersey Central Power and Light) are available at http://www.njcep.com/html/4_app_eforms2-interconnect.html. New Jersey has also developed a generic standard application.

For more information contact the State of New Jersey Board of Public Utilities.

The June 6, 2001, ruling also establishes that:  
1. Customers are not required to have additional liability insurance.  
2. Customers may be charged a $100 fee for processing of applications.  
3. Electric distribution companies shall be permitted to install a second meter, at their expense and with the customer’s permission, to measure gross kWh delivered from customer-generators.  

Solar and Wind Energy Systems Exemption

Currently, New Jersey law offers a full exemption from the state’s 6% sales tax for all solar and wind equipment. This exemption, which was created in 1980 and is scheduled to expire in 2000, is available to all taxpayers.

Statewide Renewable Energy Plan

On March 1, 2001, the state Board of Public Utilities approved an innovative plan for a new era. The State of New Jersey has prepared both an array of consistent, statewide energy efficiency programs and shared strategies for promoting compact, clean and renewable sources of energy, such as fuel cells, solar electric systems and wind generators. All New Jersey customers – residential, commercial and industrial – have the same opportunities to increase comfort and save energy.

The New Jersey Statewide Renewable Energy Plan is detailed at the website and administered by the New Jersey Board of Public Utilities, Office of Clean Energy.  The program includes Residential, commercial, renewable, and combined heat and power programs.   Under the plan the utilities coordinate administration of the statewide Customer-Sited Clean Energy Generation program to promote renewable projects sited on the customer side of the meter.

The Program offers you extensive assistance, including financial incentives, technical support and educational materials (available both on-line and in print).

New Jersey Clean Energy Program

All ratepayers in New Jersey are entitled to financial incentives through the New Jersey Clean Energy Program. Direct financial incentives are available to reduce the initial cost of your renewable generation system. Incentives are paid incrementally based on the size of the system installed. The incentive levels, which can defray installation, equipment and interconnection costs, are shown on the following chart. For the status of the New Jersey Clean Energy Program activity to date, click here.

Renewable Energy Advanced Power Program

The New Jersey Board of Public Utilities has issued a request for proposals for a competitive incentive and financing program -- The Renewable Energy Advanced Power Program -- to encourage development of distributive renewable electricity generation projects in the state. This is one of several renewable energy programs funded by the state's Societal Benefits Charge and administered by the Office of Clean Energy, a division of the New Jersey Board of Public Utilities.  
 
Projects will be expected to supply electricity to the PJM Power Pool, or to large power users, by installing a minimum of 1 Megawatt (MW) power generation at their facility or by aggregating a minimum of 1 MW of renewable electricity generation systems into one proposal. This Solicitation is designed to provide seed grants and access to capital in order to make renewably-powered electricity cost competitive with conventional power plants.  
 
The funds awarded to successful proposals will include a grant award of up to 20% of the total construction costs and other qualifying costs, as well as guaranteed long-term financing for the incremental cost of construction of the project. Projects should look to leverage the grant and public financing with private investment and loans. However, projects that receive funding through the Customer On-site Renewable Energy Program are prohibited from receiving additional funding through this Solicitation.

Renewable Energy Economic Development Program (REED)

The Office of Clean Energy (OCE) within the New Jersey Board of Public Utilities provides funding in the form of a recoverable grant for the development of renewable energy businesses, renewable technologies and market infrastructure through the Renewable Energy Economic Development (REED) program. The concept is to provide seed capital for new businesses or business ventures and then to transition the business into traditional capital markets. Total program funding at this time is $5.0 million.  
 
The REED program is open to applicants who seek funding for research, business development, commercialization and technology demonstrations of innovative products or services that advance the delivery of renewable energy systems to the marketplace. Innovations in the renewable energy industry in terms of technology, services, system integration, financing, and supporting systems and fuels are sought. The REED program is not intended to provide financing for construction and installation of renewable energy systems. Eligibility is limited to New Jersey-based, for-profit or not-for-profit renewable technology small businesses, independently operated, and with no more than 500 employees. Firms considering relocation to New Jersey, as well as individuals and non-profit organizations in the process of establishing New Jersey companies may apply.  
 
Applicants will be evaluated on a rolling basis and will be awarded funding within the program criteria, providing that the annual program budget has not been committed. This program is a recoverable grant award that the company will be required to repay as their business venture generates revenue. The minimum award amount is $50,000 and the maximum is $500,000.

Reduced Energy Demand Options for Local Governments and Schools (REDO)

The New Jersey Board of Public Utilities in partnership with the New Jersey Economic Development Authority is offering local governments and schools a low-interest, long-term financing program -- the Reduced Energy Demand Options for Local Governments and Schools (REDO). Financing under this program will cover the entire incremental cost of energy efficiency and renewable energy projects, enabling the governmental entities to finance the projects completely, with no up-front capital necessary.  
 
The REDO program can be combined with the New Jersey Clean Energy Program's incentives for a wide range of energy efficient technologies and renewable energy systems. For a listing of the incentives for specific energy efficient technologies, please visit the Smart Start Buildings webpage at www.njsmartstartbuildings.com. For details on the renewable energy rebate program, please visit the website at www.njcep.com.

Renewables Portfolio Standards

New Jersey’s 2001 restructuring legislation requires each electric power supplier that sells electricity to retail customers in New Jersey to include in its electric energy portfolio a certain percentage of electricity generated from renewable energy sources. Initially, all retail electric suppliers were to provide 4% of their electricity from Class I renewable resources plus another 2.5% from Class I or II by 2012. However, in April 2003, the Governor's Renewable Energy Task Force called for doubling the Class I requirements from 2% in 2008 to 4% in 2008 and increasing investment in solar electricity generation. In May 2004, the New Jersey Board of Public Utilities approved a revised rule requiring 4% of retail generation from Class I and an additional 2.5% from Class I or Class II resources by May 31, 2008. Percentages beyond 2008 will be adopted in a future rulemaking.  
 
Suppliers are to meet their solar electricity requirement through the use of Solar Renewable Energy Certificates (SRECS) or a Solar Alternative Compliance Payment (SACP). An SREC or "solar tag" represents the attributes of one megawatt-hour (MWh) of solar electric generation. The SACP was set at $300 per MWh.
 
The SREC program and on-line trading system has been developed to track certificates generated by solar electric systems and to facilitate the purchase, sale, retirement, and transfer of SRECs. All electric suppliers are required to use this program to show compliance with the solar set-aside portion of the State’s RPS. Solar electric system owners selling SRECs may expect to earn approximately $0.15-$0.20 per kWh generated.  
 
For more information, visit the NJ SREC site.

Societal Benefits Charge

New Jersey’s 1999 electricity restructuring legislation, the Electric Discount and Energy Competition Act (EDECA), supports investments in energy efficiency and renewable energy over an eight-year period through the "Societal Benefits Charge" (SBC) collected from all electric public utility customers. A separate Universal Service Fund (USF) provides assistance for low-income programs.  
 
The SBC funds New Jersey’s Clean Energy Program which was established on March 9, 2001 by the New Jersey Board of Public Utilities (Board). The Board directed program funding of $358 million for the years 2001 through 2003: $115 million for 2001; $119 million for 2002; and $124 million for 2003. Of this funding, 75% targeted energy efficiency programs. The remaining 25% of the SBC funding supports Class I renewables. Class I renewables include solar, wind, fuel cells, geothermal technologies, wave or tidal action, methane gas from landfills, and sustainable biomass facilities.  
 
As of August 2004, the final 2004 and 2005-2008 program funding levels had not been determined, but a series of public hearings were being held to identify the appropriate levels.  
 
The Clean Energy Council (CEC) advises the Office of Clean Energy on administration of the Clean Energy Program, which provides rebates of $0.15-$5.50 per watt for photovoltaic (PV), wind, and biomass projects, including renewably-fueled fuel cells.

Through June 30, 2004, projects supported by the NJ Clean Energy program include:

PV (<10 kW): 200 projects (1014 kW total)  
PV (>10 kW) 17 projects (1392 kW total)  
Wind (<10 kW): 4 projects (30 kW total)  
Wind (>10 kW): 0 projects (0 kW)  
Natural Gas Fuel Cell: 4 projects (900 kW total)  
Sustainable Biomass: 3 projects (300 kW total)

The US Department of Energy has produced wind resource maps for each state. The map for New Jersey can be found here. You may also find the definitions of Wind Power Classes for the maps helpful.

The US Department of Energy’s Energy Efficiency and Renewable Energy Network has also collected wind resource data for New Jersey.

The US Department of Energy and the state of New Jersey have formed a partnership to gather wind resource data for the Upper New York Bay just south of Manhattan Island. Information can be found here.

There is additional information in the Wind Energy Atlas of the United States, where you can review maps for other locations in the US or get more information about how the maps were created.

The American Wind Energy Association provides a list of wind turbine manufacturers. For a list of wind turbine installers in your area, please contact the manufacturers.

Following is a list of contacts that can help you with wind energy interconnection issues at New Jersey utilities:

Public Service Electric & Gas (PSE&G),

Atlantic City Electric Company (AEC)

The Former GPU is now doing business as  First Energy

Orange and Rockland Utilities, Inc. (O&R)

Contact your local utility to request information on their interconnection policies.

The New Jersey Board of Public Utilities’ Division of Energy is responsible for regulations relating to the electric utility industry.

The US Department of Energy’s Energy Efficiency and Renewable Energy Network maintains a list of state contacts.

The New Jersey Division of the Ratepayer Advocate represents and protects the interests of all utility consumers -- residential, small business, commercial and industrial -- each time companies in New Jersey seek changes in how much they charge customers for natural gas, electric, water, sewer or telephone service. As a member of all state utility policy making groups, the Ratepayer Advocate also represents consumers in setting energy policy that will affect the provision of utility services well into the next century.

The Northeast Sustainable Energy Association (NESEA)  has information on renewable energy and has a sustainable yellow pages.

Pace University School of Law's Center for Environmental Legal Studies is working on the Pace Energy Project. Part of this project focuses on electric utility restructuring. They have been representing and/or assisting environmentalists and consumer advocates in several states, including New York, New Jersey, Michigan and Florida in their efforts to ensure utilities have incentives to make energy efficiency opportunities available to customers, to develop renewable energy resources, and that consumer rights are protected in a deregulated environment.

Last Updated: January 2005

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