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If you own a business or live in PSE&G service territory in New Jersey and have been thinking about installing solar, but have not been sure how to finance such a large investment, now may be the time for you to move forward. The utility’s ultra-popular solar loan program just received the go-ahead from the New Jersey Board of Public Utilities (BPU) to expand to the tune of $143 million. This additional capital should fund up to 51 MW of additional solar capacity for what has turned out to be one of the country’s fastest-growing solar markets.
Here are some of the main points of the Solar Loan II program as laid out in yesterday’s press release:
- Any solar installation is eligible, including residential, commercial, industrial, government, etc., as long as it’s a project of a PSE&G electric customer
- Projects may not exceed 500 kw
- The loan may cover up to half of the gross cost of the solar installation, to be repaid over a span of up to 10 years for residential customers and up to 15 for all others
- Participation in the loan program does not affect eligibility for other solar incentives, such as New Jersey’s solar rebate and the federal tax credit
But here is what may be the coolest part of this program: the loan may be repaid with cash, or with the solar renewable energy certificates or SRECs generated by the system. This means you would be repaying your solar loan with value entirely produced by your solar panels. And the clever use of SRECs doesn’t end there: PSE&G will use the SRECs it receives to help offset the bill for this program, which is being footed currently by a surcharge on its customers’ monthly bill.
PSE&G’s electric customers will pay for the cost of the solar program through the RGGI Recovery Charge (RRC), which is included in the delivery part of their monthly bill. PSE&G will sell the SRECs it receives for loan repayment in an auction, and credit the proceeds from the sale to customers through the RRC, which will offset a portion of the program costs. The average residential customer who uses 722 kilowatthours in a summer month and 6,960 kilowatthours annually will pay about 36 cents more per year than they do now.
New Jersey’s unique package of incentives–a rebate coupled with a strong SREC trading program, on top of the federal tax credit–has made it one of the best states in the nation in which to pursue a solar installation for both homes and businesses. If you’ve been on the edge, you’re a PSE&G customer, and financing is what’s been holding you back, it may be time to take the leap.
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