Preliminary Review of Alternatives for Transitioning the New Jersey Solar Market from Rebates to Market-Based Incentives

This interim report has been prepared with the goal of providing the New Jersey Board of Public Utilities, Office of Clean Energy with timely assistance in its efforts to rapidly transition the New Jersey solar market from a dependence on rebates to a market-based structure in which Solar Renewable Energy Certificate (SREC)-based project financing can play a greater role in supporting the level of market growth necessary to meet the State's RPS requirements. The report includes an evaluation of each of the four full transition proposals presented by representatives of New Jersey's RPS Transition Working Group. By pursuing a gradual reduction in the current level of financial incentives, and a sustained, orderly transition to a financing structure in which the only form of ratepayer support would be through SREC revenues, New Jersey will be well-positioned to fulfill its goal of achieving its aggressive RPS targets while minimizing ratepayer impacts.Prepared for the New Jersey Board of Public Utilities, Office of Clean Energy.Purpose: The goal of the report was to provide the New Jersey Board of Public Utilities, Office of Clean Energy with objective and timely feedback on the range of options available for the solar market transition