Solar energy: In NJ, anyone can generate and invest

By Jeff Johnson Jr.

It probably surprises no one to hear that California has installed more solar panels than any other state. I, at least, was surprised to read on June 25 in the New York Times that New Jersey is second.

The Garden State's success in promoting solar generation stems from a rebate program that has been in place until recently; those who installed solar panels—including both residential and commercial customers—were eligible for a rebate on part of the installation.

That program turned out to be too successful, in fact, and the state hopes to phase it out and convert entirely to what it calls a Solar Renewable Energy Certificate program. Under this system, customers who have a solar generation system that is hooked into the power generation grid receive certificates for excess power generation, and are allowed to sell these certificates on the open energy market.

One power customer that hopes to benefit from this system is Abiding Presence Lutheran Church in Ewing, New Jersey. (Disclosure of interest: My family attends this church.)

The church applied to the rebate program more than two years ago—a common waiting period under the current scheme— and expects its application to be approved soon. Like many customers, Abiding Presence won't even be able to begin installing the equipment without the rebate's capital.

Once the system is installed, though, it is expected to generate all of the church's annual power needs and then some. The church's solar committee hopes the revenue from the tradable energy certificates will, over a period of a few years, easily pay down balance of the loan it will take to pay for the necessary solar equipment.

According to Abiding Presence's solar committee, the energy certificates, which are issued for every 1,000 kilowatt hours of excess power generation, were expected in 2006 to trade at $200 to $250. Now they are expected to bring $400 to $600.

Solar power is part of the state's energy master plan The current draft of this plan calls for the state to get 22.5 percent of its energy from renewable sources by 2020. Solar energy forms a portion of the proposed renewable portfolio, along with biomass and wind energy. More than 80 percent of the expected 1,200 megawatts of wind energy capacity is expected to come from turbines off the Jersey shore.