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State
All of New Jersey can take advantage of the 26%
Federal Tax Credit, which will allow you to recoup 26% of
your equipment AND installation costs for an unlimited amount.
There may still be other local rebates from your city, county, or utility. Check below!
New Jersey Solar PV Rebates & Incentives
Data from DSIRE. Last updated: 04/24/2024
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Solar Energy Sales Tax Exemption | New Jersey Division of Taxation | 03/10/21 | 04/24/24 | 219 | New Jersey offers a full exemption from the state's sales tax for all solar energy equipment. This exemption is available to all taxpayers. All major types solar energy equipment, including equipment for passive solar design, are considered eligible for the exemption as described by the New Jersey Division of Taxation Publication S&U-6 (Sales Tax Exemption Administration). According to S&U-6, the exemption includes all solar energy "devices or systems specifically approved by the Board of Public Utilities, Division of Energy and designed to provide heating or cooling or electrical or mechanical power by converting solar energy to some other usable energy source, including devices for storing solar-generated energy." The exemption does not apply to devices that would be required regardless of the energy source being utilized. In order to claim the exemption, the purchaser must fill out and submit Form ST-4 (Exempt Use Certificate) to the seller instead of paying sales tax. | |||||||||||||||||||||||||||||||||||||||||||
Business Energy Investment Tax Credit (ITC) | U.S. Internal Revenue Service | 08/29/23 | 04/24/24 | 658 | Note: The Inflation Reduction Act of 2022 (H.R. 5376) made several significant changes to this tax credit, including expanding the eligible technologies, extending the expiration date, modifying the scheduled step-down in its value, providing for new bonus credits, and establishing new criteria to qualify for the full credit. It also phases out this tax credit under section 48 of the Internal Revenue Code and replaces it with a new technology-neutral tax credit under section 48E of the Internal Revenue Code. The summary below describes the current section 48 tax credit as modified by the Inflation Reduction Act, and below that, the new 48E tax credit. The federal Business Energy Investment Tax Credit (ITC) has been amended a number of times, most recently and most significantly by the Inflation Reduction Act of 2022. That bill established new prevailing wage and apprenticeship requirements for larger system to qualify for the full 30% tax credit. The Department of the Treasury issued Initial Guidance on these requirements on November 30, 2022 . According to law, the labor provisions apply to projects for which construction begins 60 days or more after Treasury publishes its guidance. Given the publishing date of November 30, 2022, the effective date for the labor provisions is January 30, 2023. The credit for different project types and available bonus credits is described below. Base Credit Projects under 1 MW (or larger projects that are commenced no more than 60 days after the Treasury Secretary develops labor guidelines) do not need to meet the new labor standards established by the Inflation Reduction to receive the full 30% tax credit. Such projects that begin construction after 2021 and before 2025 can receive the full tax credit of 30%. Note, projects that commence construction on or after January 1, 2025 can receive a tax credits under the new Clean Electricity Investment Tax Credit (48E) described below. Projects over 1 MW that begin construction 60 days after the Treasury Secretary releases labor guidelines (January 29, 2023) and no later than January 1, 2025 will receive a base tax credit of 6%. However, projects can qualify for the full 30% tax credit if they ensure that all laborers and mechanics involved in the construction of the project or the maintenance of the project for 5 years after project completion are paid wages at rates not less than prevailing wages. Projects must also ensure that a percentage of total labor hours are performed by qualified apprentices. The percent of hours increases over time to a maximum requirement of 15% in 2024 and thereafter. Note, projects that commence construction on or after January 1, 2025 can receive a tax credits under the new Clean Electricity Investment Tax Credit (48E) described below. Bonus Credits Projects in which 100% of any steel or iron that is a component of the facility and 40% of the manufactured products that are components of the facility were produced in the United States can qualify for the Domestic Content Bonus. For projects that are under 1 MW and projects that are larger than 1 MW and meet the labor requirements specified above, the Domestic Content Bonus increases the tax credit by 10 percentage points. For larger projects that do not meet the labor requirements, the Domestic Content Bonus increases the tax credit by 2 percentage points. Note, the 40% requirement for manufactured products increases over time, eventually requiring 55% domestic content for projects commenced after 2026, The IRS issued Notice 2023-38 in May 2023, which provides further guidance on the domestic content bonus. Projects that are located within an energy community can receive the Energy Community Bonus. To qualify, a facility must be located at one of the following: (i) a brownfield site, (ii) a metropolitan or non-metropolitan statistical area which (A) has (or, at any time during the period beginning after December 31, 2009, had) 0.17% or greater direct employment or 25% or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas, or (B) has an unemployment rate above the national average for the previous year, or (iii) a census tract or a census tract that is adjoining a census tract in which a coal mine has closed after 1999 or a coal-fired electric generating unit was retired after 2009. For projects that are under 1 MW and projects that are larger than 1 MW and meet the labor requirements specified above, the Energy Community Bonus increases the tax credit by 10 percentage points. For larger projects that do not meet the labor requirements, the Energy Community Bonus increases the tax credit by 2 percentage points. The Treasury Department issued Notice 2023- 29 in April 2023, which provides initial guidance on the Energy Community Bonus Credit. The Treasury Department later updated and clarified its guidance in June 2023 with Notice 2023-45. The Treasury Department also issued Notice 2023-47 in June 2023, which includes lists of information that taxpayers may use to determine whether they meet certain requirements under the Statistical Area Category or the Coal Closure Category. The Department of Energy has also released a GIS map showing the locations of qualifying energy communities. Solar and wind facilities less than 5 MW may also be eligible for low-income bonuses. A project built in a low-income community as defined by the New Markets Tax Credit or on Indian Land can receive an increased tax credit of 10 percentage points. The Department of Energy has also released a GIS map showing qualifying low-income communities. A project associated with a low-income residential building project or a low-income economic benefit project can receive an increased tax credit of 20 percentage points. These bonuses are capped at 1.6 GW of projects per year. The IRS issued Notice 2023-17 in February 2023, to allocate the cap across different categories of projects. The IRS also issued final regulations in August to provide further guidance on the iow-income communities bonus credit. Additional information can be found on the U.S. Department of Energy's webpage dedicated to the ow-income communities bonus credit. Eligible Technologies
Credit Monetization Section 13801 of The Inflation Reduction Act of 2022 also established procedures for other parties to monetize certain tax credits, including this one, for equipment placed in service on or after January 1, 2023 and through December 31, 2032. The direct pay option allows non-taxable entities to directly monetize certain tax credits. The provisions apply to nonprofits, a state or political subdivision thereof, the Tennessee Valley Authority, Indian tribal governments (as defined in Section 30D(g)(9)), any Alaska Native Corporation (as defined in Section 3 of the Alaska Native Claims Settlement Act), or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. Such applicable entities can elect to be treated as having made a tax payment equal to the value of the tax credit they would otherwise be eligible to claim. The entity can then claim a refund for the excess taxes they are deemed to have paid. The option effectively makes this tax credit refundable for these entities. The act also allows eligible taxpayers to transfer all or a portion of their eligible tax credits to an unrelated taxpayer. Transfers must be reported to IRS and only one transfer is permitted. Must be elected no later than the due date for tax filing for the tax year the tax credit is claimed. Clean Electricity Investment Tax Credit (48E) Section 13702 of the Inflation Reduction Act created a new tax credit, the Clean Electricity Investment Tax Credit to replace the traditional ITC for systems placed in service on or after January 1, 2025. The tax credit is functionally similar to the ITC, but is not technology-specific. It applies to all generation facilities and energy storage systems that have an anticipated greenhouse gas emissions rate of zero. The credit amount is generally calculated in the same manner as described above, but will be phased out as the U.S. meets greenhouse gas emission reduction targets. For a project whose construction is commenced in the year following the year in which greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25% of the 2022 levels, the tax credit will not be reduced. However, for projects commenced in the second year following the target being met, the tax credit will be worth 75% of what it would otherwise be. Projects commenced in the third year will receive a credit worth 50%, and all projects commenced after then will not be eligible for a tax credit. | |||||||||||||||||||||||||||||||||||||||||||
Residential Energy Conservation Subsidy Exclusion (Personal) | U.S. Internal Revenue Service | 07/20/22 | 04/24/24 | 666 | According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated.
The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. | |||||||||||||||||||||||||||||||||||||||||||
Modified Accelerated Cost-Recovery System (MACRS) | U.S. Internal Revenue Service | 07/12/23 | 04/24/24 | 676 | Note: The Tax Cuts and Jobs Act of 2017 increased bonus depreciation to 100% for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. Bonus depreciation steps down by 20% each year beginning with 80% in 2023.. Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. A number of renewable energy technologies are classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A), often known as the energy investment tax credit or ITC to define eligible property. Such property currently includes*:
In addition, for certain other types of renewable energy property, such as biomass or marine and hydrokinetic property, the MACRS property class life is seven years. Eligible biomass property generally includes assets used in the conversion of biomass to heat or to a solid, liquid or gaseous fuel, and to equipment and structures used to receive, handle, collect and process biomass in a waterwall, combustion system, or refuse-derived fuel system to create hot water, gas, steam and electricity. Marine and hydrokinetic property includes facilities that utilize waves, tides, currents, free-flowing water, or differentials in ocean temperature to generate energy. It does not include traditional hydropower that uses dams, diversionary structures, or impoundments.
Bonus Depreciation Bonus Depreciation History
The 50% first-year bonus depreciation provision enacted in 2008 was extended (retroactively for the entire 2009 tax year) under the same terms by the American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009. It was renewed again in September 2010 (retroactively for the entire 2010 tax year) by the Small Business Jobs Act of 2010 (H.R. 5297). In December 2010 the provision for bonus depreciation was amended and extended yet again by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853). Under these amendments, eligible property placed in service after September 8, 2010 and before January 1, 2012 was permitted to qualify for 100% first-year bonus depreciation. The December 2010 amendments also permitted bonus depreciation to be claimed for property placed in service during 2012, but reverted the allowable amount from 100% to 50% of the eligible basis. The 50% first-year bonus depreciation allowance was further extended for property placed in service during 2013 by the American Taxpayer Relief Act of 2012 (H.R. 8, Sec. 331) in January 2013. The Tax Increase Prevention Act Of 2014 (H.R. 5771, Sec. 125), extended these provisions through to December 31, 2014, and thus retroactively for the 2014 tax year. | |||||||||||||||||||||||||||||||||||||||||||
Residential Energy Conservation Subsidy Exclusion (Corporate) | U.S. Internal Revenue Service | 05/19/23 | 04/24/24 | 727 | According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated. The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. | |||||||||||||||||||||||||||||||||||||||||||
Renewable Electricity Production Tax Credit (PTC) | U.S. Internal Revenue Service | 08/29/23 | 04/24/24 | 734 | Note: The Inflation Reduction Act of 2022 (H.R. 5376) made several significant changes to this tax credit, including extending the expiration date, providing for new bonus credits, and establishing new criteria to qualify for the full credit. It also phases out this tax credit under section 45 of the Internal Revenue Code at the end of 2024 and replaces it with a new technology-neutral tax credit under section 45Y of the Internal Revenue Code. The summary below describes the current section 45 tax credit as modified by the Inflation Reduction Act, and below that, the new 45Y tax credit. The federal renewable electricity production tax credit (PTC) is an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualified energy resources and sold by the taxpayer to an unrelated person during the taxable year. The duration of the credit is 10 years after the date the facility is placed in service. Originally enacted in 1992, the PTC has been renewed and expanded numerous times, most recently by the Inflation Reduction Act of 2022. That bill established new prevailing wage and apprenticeship requirements for larger system to qualify for the full value of the tax credit -- 2.6 cents per kilowatt-hour (kWh) for wind, closed-loop biomass, and geothermal energy; 1.3 cents per kWh for open-loop biomass facilities, small irrigation power facilities, landfill gas facilities and trash facilities. In late-2022 or 2023, the Treasury Secretary will issue guidance for these new labor provisions. The credit for different project types and available bonus credits is described below. Base Credit Projects under 1 MW (or larger projects that are commenced no more than 60 days after the Treasury Secretary develops labor guidelines) do not need to meet the new labor standards established by the Inflation Reduction to receive the full 1.3 or 2.6 cents/kWh (depending on the facility type) tax credit. This amount may be adjusted annually for inflation. Such projects that begin construction after 2021 and before 2025 can receive the full tax credit. Note, projects that commence construction on or after January 1, 2025 can receive a tax credit under the new Clean Energy Production Tax Credit (45Y) described below. Projects over 1 MW that begin construction 60 days after the Treasury Secretary releases labor guidelines and no later than January 1, 2025 will receive a base tax credit of 0.5 cents/kWh. However, projects can qualify for the full tax credit if they ensure that all laborers and mechanics involved in the construction of the project or the maintenance of the project for the entire 10-year PTC period are paid wages at rates not less than prevailing wages. Projects must also ensure that a percentage of total labor hours are performed by qualified apprentices. The percent of hours increases over time to a maximum requirement of 15% in 2024 and thereafter. Note, projects that commence construction on or after January 1, 2025 can receive a tax credit under the new Clean Energy Production Tax Credit (45Y) described below. Bonus Credits The Domestic Content Bonus increases the credit amount by 10% for projects in which 100% of any steel or iron that is a component of the facility and 40% of the manufactured products that are components of the facility were produced in the United States. Note, the required percentage of domestic manufactured products for offshore wind facilities is 20%. The IRS issued Notice 2023-38 in May 2023, which provided guidance on the domestic content bonus. The Energy Community Bonus increases the credit amount by 10% for projects that are located at one of the following: (i) a brownfield site, (ii) a metropolitan or non-metropolitan statistical area which (A) has (or, at any time during the period beginning after December 31, 2009, had) 0.17% or greater direct employment or 25% or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas, or (B) has an unemployment rate above the national average for the previous year, or (iii) a census tract or a census tract that is adjoining a census tract in which a coal mine has closed after 1999 or a coal-fired electric generating unit was retired after 2009. The Treasury Department issued Notice 2023- 29 in April 2023, which provided initial guidance on the Energy Community Bonus Credit. The Treasury Department later updated and clarified its guidance in June 2023 with Notice 2023-45. The Treasury Department also issued Notice 2023-47 in June 2023, which includes lists of information that taxpayers may use to determine whether they meet certain requirements under the Statistical Area Category or the Coal Closure Category. The Department of Energy has also released a GIS map showing the locations of qualifying energy communities. Credit Monetization Section 13801 of The Inflation Reduction Act of 2022 also established procedures for other parties to monetize certain tax credits, including this one, for equipment placed in service on or after January 1, 2023 and through December 31, 2032. The direct pay option allows non-taxable entities to directly monetize certain tax credits. The provisions apply to nonprofits, a state or political subdivision thereof, the Tennessee Valley Authority, Indian tribal governments (as defined in Section 30D(g)(9)), any Alaska Native Corporation (as defined in Section 3 of the Alaska Native Claims Settlement Act), or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. Such applicable entities can elect to be treated as having made a tax payment equal to the value of the tax credit they would otherwise be eligible to claim. The entity can then claim a refund for the excess taxes they are deemed to have paid. The option effectively makes this tax credit refundable for these entities. The act also allows eligible taxpayers to transfer all or a portion of their eligible tax credits to an unrelated taxpayer. Transfers must be reported to IRS and only one transfer is permitted. Must be elected no later than the due date for tax filing for the tax year the tax credit is claimed. Clean Energy Production Tax Credit (45Y) Section 13701 of the Inflation Reduction Act created a new tax credit, the Clean Energy Production Tax Credit to replace the traditional PTC for systems placed in service on or after January 1, 2025. The tax credit is functionally similar to the PTC, but is not technology-specific. It applies to all generation facilities that have an anticipated greenhouse gas emissions rate of zero. The credit amount is generally calculated in the same manner as described above, and all technologies that satisfy the labor requirements will be eligible for the full value of the tax credit as adjusted for inflation. The credit will be phased out as the U.S. meets greenhouse gas emission reduction targets. For a project whose construction is commenced in the year following the year in which greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25% of the 2022 levels, the tax credit will not be reduced. However, for projects commenced in the second year following the target being met, the tax credit will be worth 75% of what it would otherwise be. Projects commenced in the third year will receive a credit worth 50%, and all projects commenced after then will not be eligible for a tax credit. | |||||||||||||||||||||||||||||||||||||||||||
Energy-Efficient Mortgages | 08/05/20 | 04/24/24 | 742 |
Homeowners can take advantage of energy efficient mortgages (EEM) to either finance energy efficiency improvements to existing homes, including renewable energy technologies, or to increase their home buying power with the purchase of a new energy efficient home. The U.S. federal government supports these loans by insuring them through Federal Housing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency, and it secures lenders against loan default.
Loan amounts may not exceed the projected savings of the energy efficiency improvements. These loans may be combined with FHA 203 (h) mortgages available to victims of presidentially-declared disasters and with financing offered through the FHA 203 (k) rehabilitation program. FHA loan limits do not apply to the EEM. Borrowers must obtain a home energy assessment by a qualified energy rater, assessor, or auditor using whole-assessment standards, protocols, and procedures.
ENERGY STAR Partnership for Lenders | ||||||||||||||||||||||||||||||||||||||||||||
USDA - Rural Energy for America Program (REAP) Grants | U.S. Department of Agriculture | $600 million for FY 2018 | 08/21/18 | 04/24/24 | 917 | Note: The U.S. Department of Agriculture's Rural Development issues periodic Notices of Solicitation of Applications for the Rural Energy for America Program (REAP) in the Federal Register. The FY 2018 solicitation for the REAP program includes a total budget of approximately $800 million. The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance. Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. Application due dates are published annually in the Notice of Funding Availability. Eligibility Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas. Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees. For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator. Regional rural energy coordinators provide loan and grant applications upon request. History
The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies. | ||||||||||||||||||||||||||||||||||||||||||
Office of Indian Energy Policy and Programs - Funding Opportunities | U.S. Department of Energy | 02/26/20 | 04/24/24 | 918 | The U.S. Department of Energy's (DOE) Office of Indian Energy Policy and Programs promotes tribal energy sufficiency, economic growth, and employment on tribal lands through the development of renewable energy and energy efficiency technologies. The program provides financial assistance, technical assistance, and education and training to tribes for the evaluation and development of renewable energy resources and energy efficiency measures. DOE's program offerings consist of program management through DOE headquarters, program implementation and project management through DOE's field offices, and technical support through DOE laboratories. Program management is carried out by DOE's Weatherization and Intergovernmental Program, which provides programmatic direction and funding to DOE field offices for program implementation. DOE's Golden Field Office solicits, awards, administers, and manages financial assistance agreements. Program funding is awarded through a competitive process. Click here to view current program funding opportunities, and here to apply for technical assistance. | |||||||||||||||||||||||||||||||||||||||||||
Residential Renewable Energy Tax Credit | U.S. Internal Revenue Service | 08/16/22 | 12/31/34 | 1235 | Note: Section 13302 of The Inflation Reduction Act of 2022 (H.R. 5376) extended the expiration date and modified the phase down of this tax credit. It also made stand-alone energy storage systems eligible for the credit, and biomass heaters ineligible for the credit. Biomass heaters are now eligible for the residential energy efficiency tax credit. The summary below reflects the credit after the enactment of H.R. 5376. A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below. Solar-electric property
Solar water-heating property
Fuel cell property
Small wind-energy property
Geothermal heat pumps
Battery Storage Systems (Standalone Systems)
Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previous limitation on the use of the credit for eligible projects also supported by "subsidized energy financing." For projects placed in service after December 31, 2008, this limitation no longer applies. Energy Storage Prior to the enactment of the Inflation Reduction Act of 2022, the federal tax code did not explicitly reference energy storage, so stand-alone energy storage systems did not qualify for the tax credit. However, the IRS issued Private Letter Rulings in 2013 and 2018, which address energy storage paired with PV systems. In both cases, the IRS ruled that the energy storage equipment when paired with PV met the statutory definition of a "qualified solar electric property expenditure," as was eligible for the tax credit. It is important to note that Private Letter Rulings only apply to the taxpayer who requested it, and do not establish precedent. Any taxpayer considering the purchase of an energy storage system should consult their accountant or other tax professional before claiming a tax credit. History Established by The Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells. The Energy Improvement and Extension Act of 2008 extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016; the ability to take the credit against the alternative minimum tax; and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. The credit was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009, which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008. | |||||||||||||||||||||||||||||||||||||||||||
USDA - Rural Energy for America Program (REAP) Loan Guarantees | U.S. Department of Agriculture | 08/21/18 | 04/24/24 | 2511 | The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance. Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. Application due dates are published annually in the Notice of Funding Availability. Eligibility Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas. Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees. For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator. Regional rural energy coordinators provide loan and grant applications upon request. History
The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies. | |||||||||||||||||||||||||||||||||||||||||||
U.S. Department of Energy - Loan Guarantee Program | U.S. Department of Energy | 09/08/22 | 04/24/24 | 3071 | Note: The Inflation Reduction Act (H.R. 5376) made several changes to this program. It appropriated approximately $11.7 billion in total for the Loan Programs Office (LPO) to support issuing new loans. This, in turn, increased the loan authority in LPO’s existing loan programs by approximately $100 billion. The Inflation Reduction Act also adds a new loan program, the Energy Infrastructure Reinvestment (EIR) Program (section 1706), to help retool, repower, repurpose, or replace energy infrastructure that has ceased operations or to improve the efficiency of infrastructure that is currently operating. Title 17 Program Section 1703 of Title 17 of the Energy Policy Act (EPAct) of 2005 created the Department of Energy's (DOE's) Loan Guarantee Program. The program was reauthorized and revised by the American Recovery and Reinvestment Act (ARRA) of 2009 by adding Section 1705 to EPAct. The 1705 Program was retired in September 2011, and Loan Guarantees are no longer available under that authority. DOE, however, still has authority to issue Loan Guarantees under the old Section 1703 Program. Under Section 1703, DOE is authorized to issue loan guarantees for projects with high technology risks that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued." Loan guarantees are intended to encourage early commercial use of new or significantly improved technologies in energy projects. The loan guarantee program generally does not support research and development projects. The Inflation Reduction Act added an additional $40 billion of loan authority to Section 1703 program. The legislation appropriated $3.6 billion in credit subsidy to support the cost of those loans and set aside a percentage of these amounts for administrative expenses to help carry out the program, including monitoring and originating new loans. This new loan authority is open to all currently eligible Title 17 Innovative Clean Energy technology categories, including fossil energy and nuclear energy. The Inflation Reduction Act appropriations also support the expanded activities authorized by the Bipartisan Infrastructure Law that required these new appropriations to go into effect. These expanded activities support projects involving critical minerals processing, manufacturing, and recycling, and removing the innovation requirement for State Energy Financing Institution-backed projects. Click here for more information about how a project that reduces greenhouse gas emissions can be eligible without meeting the innovative technology requirement if the project receives support from a State Energy Financing Institution . Energy Infrastructure Reinvestment (EIR) Program (Section 1706) The Inflation Reduction Act also created a new program under Title 17, the Energy Infrastructure Reinvestment (EIR) Program. The new program targets projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations, or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases. The Inflation Reduction Act appropriated $5 billion through September 30, 2026, to carry out EIR, with a total cap on loans of up to $250 billion. Advanced Technology Vehicles Manufacturing Loan Program LPO initially had $15.1 billion in loan authority to support the manufacture of eligible light-duty vehicles and qualifying components under the Advanced Technology Vehicles Manufacturing Loan Program (ATVM), authorized by the Energy Independence and Security Act of 2007. To date, the program has loaned $8 billion for projects that have supported the production of more than 4 million advanced technology vehicles. Read more about LPO's ATVM portfolio. The Inflation Reduction Act removed the $25 billion cap on the total amount of loans it can award and appropriated $3 billion to remain available through September 30, 2028 for the costs of direct loans under ATVM. In addition to amounts supported by currently appropriated credit subsidy, this $3 billion is estimated to provide for an additional ~$40 billion in loan authority for a total estimated available loan authority under ATVM of ~$55.1 billion. Tribal Energy Projects The Tribal Energy Loan Guarantee Program (TELGP) supports tribal investment in energy-related projects by providing direct loans or partial loan guarantees to federally recognized tribe, including Alaska Native village or regional or village corporations; or a Tribal Energy Development Organization (TEDO) that is wholly or substantially owned by a federally recognized tribe federally recognized Indian tribe or Alaska Native Corporation. Under this solicitation, The Inflation Reduction Act increased the aggregate amount of loans available at any time under the Tribal Energy Loan Guarantee Program (TELGP) from $2 billion to $20 billion. It also provided $75 million to remain available through September 30, 2028 to carry out TELGP under section 2602(c) of the Energy Policy Act of 1992. | |||||||||||||||||||||||||||||||||||||||||||
Property Tax Exemption for Renewable Energy Systems | New Jersey Department of the Treasury | 03/10/21 | 04/24/24 | 3100 |
In October 2008, New Jersey enacted legislation exempting renewable energy systems used to meet on-site electricity, heating, cooling, or general energy needs from local property taxes. (There is not a state component to property taxes in New Jersey). Eligible renewable energy systems* include solar PV, wind, fuel cells, sustainable biomass, geothermal electric, landfill gas, hydroelectric, resource recovery, wave, and tidal systems that produce electricity. Systems that produce energy from solar thermal energy (e.g., solar hot water) or geothermal energy (e.g., geothermal heat pumps) are also eligible for the exemption. The exemption may be claimed for all qualified systems installed on residential, commercial, industrial, or mixed use buildings as accessory uses. | |||||||||||||||||||||||||||||||||||||||||||
Edison Innovation Clean Energy Manufacturing Fund - Grants and Loans | New Jersey Economic Development Authority | $2 million | 07/16/21 | 04/24/24 | 3266 | Per the State of New Jersey Board of Public Utilities, the EDA Edison Green Growth Fund Loan closed December 2012 The Edison Innovation Clean Energy Manufacturing Fund (CEMF) is intended to provide assistance for the manufacturing of energy efficient and renewable energy products that will assist Class I renewable energy and energy efficiency technologies in becoming competitive with traditional sources of electric generation. The CEMF is administered by the New Jersey Economic Development Authority (EDA) and is structured to provide grants (Tranche I) and loans (Tranche II) for certain business development activities that further these goals within the State of New Jersey. Applicants may apply for both tranches together or separately apply for Tranche II funds, but Tranche I applicants must also apply for Tranche II funding. The program first opened early 2009, but the most recent solicitation was issued in May 2011. The program is currently accepting applications on an open, rolling basis.
The total amount of available funding is capped at a maximum of $3.3 million per project. A minimum 50% cash match of total project costs is required to be from non-state derived matching funds. This incentive program is directed at commercial manufacturing; prototype development projects are not eligible. Further details of each Tranche are provided below: | ||||||||||||||||||||||||||||||||||||||||||
Assessment of Farmland Hosting Renewable Energy Systems | 07/13/20 | 04/24/24 | 4026 | In New Jersey, under the Farmland Assessment Act, farmland actively devoted to an agricultural or horticultural use is assessed at its productivity value. This practice generally results in a lower tax burden for farmland owners compared to residential or commercial land owners. In January 2010 New Jersey enacted legislation (S.B. 1538), which among other things clarifies how farmland used for biomass, solar, and wind energy generation should be treated under the Farmland Assessment Act. Ultimately, the law states that the addition of a biomass, solar, or wind energy generating system to land that was assessed and taxed as farmland during the prior tax year does not automatically preclude the land from continuing to qualify for this treatment. Instead, the law sets a series of conditions that must be met in order for the land to continue to be assessed as farmland, as follows:*
Income generated from the sale of heat or power generated by solar, wind, biomass facilities is not considered income for the purposes of meeting eligibility requirements for assessment, valuation, and taxation under the Farmland Assessment Act. However, there is no income requirement for land assessed according to the terms described in the law. Any qualifying generation equipment installed in pinelands remains subject to the Pinelands Protection Act. The application to install energy generation facilities, structures, and equipment can be found here. *It is also important to note that S.B. 1538 prescribes several other criteria for determining whether it is permissible to construct energy generation facilities on preserved farmland. Among these criteria are requirements that energy production facilities not interfere with farm production; be limited in size to that needed to meet no more than 110% of on-site energy needs; and not occupy more than 1% of the total area of the farm, including both preserved and non-preserved portions. | ||||||||||||||||||||||||||||||||||||||||||||
USDA - High Energy Cost Grant Program | USDA Rural Utilities Service | $10 million (2021 solicitation) | 07/20/22 | 04/24/24 | 4359 |
NOTE: The most recent solicitation for this program closed July 6, 2021. Please check the program website for information on future solicitations.
This grant program is not limited to renewable energy or energy conservation and efficiency measures, but these measures are eligible for this grant program. | ||||||||||||||||||||||||||||||||||||||||||
Edison Innovation Green Growth Fund Loans | New Jersey Economic Development Authority | 07/18/21 | 04/24/24 | 4848 |
Note: The energy efficiency technologies indicated as "eligible" above are examples of possible eligible technologies listed on the program web site. Other products that conserve electricity or natural gas may also be eligible. The renewable energy technologies listed above are those deemed "Class I Renewable Energy" under the New Jersey renewables portfolio standard (RPS). For more detailed definitions please see the program web site.
The Edison Innovation Green Growth Fund (EIGGF), administered by the New Jersey Economic Development Authority, offers loans to for-profit companies developing Class I renewable energy (as defined under state renewables portfolio standard) and energy efficiency products. In order to qualify for a loan, the product in question must have already achieved "proof of concept" and have begun to generate commercial revenues.
Eligibility
Requirements
Use of funds: Growth capital to advance newly discovered energy efficient, renewable energy or supply chain products that will assist Class I renewable energy or energy efficient technologies in becoming competitive with traditional sources of electric generation.
The EIGGF is funded by the state societal benefits charge (SBC), thus proposed projects in municipalities that do not pay into the SBC are not be eligible for funding under this program. In order to be considered for funding, applicants must submit an Eligibility Intake Form. For additional details please see the program website, which contains the program solicitation, application information, and FAQs. | |||||||||||||||||||||||||||||||||||||||||||
Solar Renewable Energy Certificates (SRECs) Registration Program | 01/06/19 | 04/24/24 | 5687 | NOTE: Starting October 29, 2018, the SREC Registration program applications submitted will receive 10 year SREC qualifying life. Applications submitted before the date will receive 15 years SREC qualifying life. New Jersey’s Renewable Portfolio Standard (RPS) includes a carve-out for solar, requiring the each electricity Load Serving Entities (LSEs) to provide at least 4.1% of the electricity through in-state solar installations by 2028. This solar carve-out, in addition to other supporting incentives has established NJ as one of the largest and dynamic solar market in the US. The SREC registration program allows the solar projects in New Jersey generate Solar Renewable Energy Credit (SREC) which can be traded as commodities to meet state's RPS requirements. Eligibility Participants must register their solar project with the SREC Registration Program prior to the start of the construction in order to establish eligibility to earn SRECs. With respect to solar-electric systems, S.B. 1925 defines the term to include: (1) net metered facilities, (2) facilities that meet the definition of "on-site generation"; (3) facilities eligible for aggregated net metering; (4) facilities owned or operated by a public utility approved by the BPU; (5) facilities connected to the distribution system at 69 kilovolts (kV) or less and approved by the BPU; and (6) facilities certified by the BPU and DEP as being located on a brownfield, an area of historic fill, or a closed landfill. The definition does not include any facility connected to the grid at a voltage of higher than 69 kV, unless the facility is a net metering facility. Program description Solar projects installed in New Jersey that are registered with the SREC Registration Program are qualified to generate Solar Renewable Energy Certificates (SRECs). SRECs represent the renewable attributes of solar generation, bundled in minimum denominations of one megawatt-hour (MWh) of production. New Jersey’s SREC program provides a means for SRECs to be created and verified, and allows electric suppliers to buy and retire these certificates in order to meet their solar RPS requirements. All electric suppliers must use the SREC program to demonstrate compliance with the RPS. New Jersey’s on-line marketplace for trading SRECs, launched in June 2004, is the first such operation in the world. The price of SRECs is determined primarily by their market availability and the price of the Solar Alternative Compliance Payment (SACP) for the state RPS. The SACP is effectively a ceiling on the value of SRECs because it is the per MWh payment that electricity suppliers must make if they fail to obtain enough SRECs to cover their RPS obligation. Prior to 2008 the SACP was set at $300 per MWh. This was amended in 2007, and an eight-year schedule was established by the BPU for Energy Year (EY) 2009 - 2016. In 2012 S.B. 1925 established a 15-year schedule for EY 2014 - 2028. Past and current SACP levels are as follows:
SREC prices vary according to supply and demand in the market. The wide fluctuations in the SREC prices in the NJ market have been a significant concern to the regulators and the solar industry. To address this issue, on May, 2014, the Board of Public Utilities (BPU) published a report addressing methods to mitigate SREC price volatility in the market. The report can be accessed here. Prices for recently traded SRECs can be accessed here. Solar facilities have a 10-year "qualification life", meaning that they are eligible to generate SRECs for 10 years after they are connected to the grid. The qualification life ends on the first May 31 (the end of the RPS compliance year) that is at least 10 years after the interconnection date. If a generator has accumulated a fraction of a MWh by the end of a reporting year (May 31), the fraction may be carried over and combined with energy generated in one or more subsequent reporting years in order to make a full MWh that is eligible for sale. Applications filed before October 29 2018, will have SREC life of 15 years. SREC Tracking SRECs accrue from participating solar-electric facilities beginning March 1, 2004. SRECs generated prior to June 1, 2009 could only be used for compliance during the compliance year in which they were generated. Effective June 1, 2009 SRECs had a trading lifetime of two years, meaning that an SREC could be used for by an electric supplier for RPS compliance during the year it is issued or during the next compliance year. This lifetime was extended to three years -- the year of generation plus the following two compliance years -- by A.B. 3520 (2010), effective in July 2010. It has now been further extended to 5 years -- the year of generation plus the following four compliance years -- by S.B. 1925 effective July 23, 2012. Pricing information for SRECs originating within New Jersey is available from the PJM Generation Attribute Tracking System (GATS) through the Public Reports section of the web site. REC owners can directly trade their credits from their GATS account or use other market place aggregators to trade their RECs. SREC based Financing Programs
In April 2008, Public Service Electric and Gas (PSE&G) received approval from the BPU to offer a loan program to help its customers finance PV systems. The PSE&G Solar Loan Program allows customers to take a loan from the utility for up to 40-60% of the cost of the PV system. Customers may then repay the loan using SRECs produced by their system at a basement price initially set at $475 per SREC. The initial $105 million program was scheduled to last two years. An extension of the program, Solar Loan II, was approved by the BPU in December 2009 to provide additional financing amounting to $143 million through 2011 under similar though not identical terms. Click here for further information on this program. | ||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae Green Financing – Loan Program | 05/08/20 | 04/24/24 | 5780 | NOTE: Only multifamily properties are eligible for the program. Single family homeowners are not eligible for this program. The Fannie Mae Green Financing Business provides mortgage financing to apartment buildings and cooperatives (with 5 or more units) to finance energy and water efficiency property improvements. Its green financing programs include Green Rewards, and preferential pricing for loans secured by a property with an eligible Green Building Certification. All Fannie Mae green loans are securitized as Green Mortgage Backed Securities (Green MBS). To learn more about these programs, multifamily property owners should coordinate with a Fannie Mae DUS Lender: https://multifamily.fanniemae.com/about-multifamily/our-partners/dus-lenders Green Rewards, launched in 2015, provides preferential pricing and up to an additional 5% of loan proceeds by including up to 75% of projected owner energy and water savings and 25% of projected tenant savings in the loan underwriting. Conventional and affordable multifamily properties, as well as cooperatives, seniors, military, and student housing properties are eligible for this program. To qualify for a Green Rewards loan the property owner must commit to making property improvements that are projected to reduce the whole property’s annual energy and water consumption by at least 30%, which a minimum of 15% must be attributable to savings in energy consumption. Properties may be located anywhere in US, and the selected property upgrades must be completed within 12 months of loan closing. Fannie Mae also provides preferential pricing for an acquisition or refinance loan on a conventional or affordable property that has a current, eligible Green Building Certification per Fannie Mae Form 4250. Please visit the Fannie Mae Green Financing website for more information and detailed program requirements. | ||||||||||||||||||||||||||||||||||||||||||||
NJ Clean Energy- Residential New Construction Program | 07/18/22 | 04/24/24 | 5811 | New Jersey’s Clean Energy Program offers the Residential New Construction Program to incentivize the construction of new homes that meet standards for the following: IECC 2015, EPA ENERGY STAR Certified New Homes, Multifamily High-Rise and the DOE Zero Energy Ready Home Program. The program provides a range of financial incentives depending on the energy efficiency of the homes. Both single family and multifamily buildings are eligible for the program. Program Description The Program offers builders flexibility and options to participate in the program by building homes to varying standards or guidelines. In all cases, the Home Energy Rating System (HERS) Index is used to calculate the home’s energy efficiency achieved and to determine the cash rebate the builder will earn. The three standards are outlined below: ENERGY STAR Certified Home v 3.1 Requirements: Builders can choose to construct a home in conformance with ENERGY STAR v 3.1 specifications and can earn the ENERGY STAR certification for the home. In this case, the rater will score the home’s performance using the HERS rating system. The home must meet or exceed the ENERGY STAR HERS Index Target and comply with all ENERGY STAR v 3.1 mandated requirements and checklists.Zero Energy Ready Home & Zero Energy Home + RE Builders can choose to build the home in conformance with the DOE Zero Energy Ready Home specification, which are above ENERGY STAR v3.1 specification, meet or exceed the 2018 IECC insulation level, and certify to EPA’s Indoor airPLUS Program. The program also has a Zero Energy Ready Home 100% Renewables offering, whereby 100% of the building’s modeled electric site energy usage must be met by renewable energy systems installed onsite at the time of completion of the home. ENERGY STAR Multi-Family High Rise Builders must meet or exceed EPA ENERGY STAR Multifamily New Construction (MFNC) Program standards, including following a Performance Path that utilizes either HERS or ASHRAE-approved energy modeling to determine energy savings of a customized set of measures. Incentive Structure The incentive structure offers the builder varying incentive amounts based on the type of residence (single-family, townhouse, and multi-family) and the level of energy efficiency that the home achieves compared to a reference home. Details of this structure are available on the program website. Please contact the program administrator for more information. | ||||||||||||||||||||||||||||||||||||||||||||
Successor Solar Incentive (SuSI) Program - Administratively Determined Incentive | Board of Public Utilities | 12/15/23 | 04/24/24 | 22418 | By Board Order on July 28, 2021, the New Jersey Board of Public Utilities (NJBPU) established the SuSI Program to implement the Clean Energy Act of 2018 (L. 2018, c.17) and the Solar Act of 2021 (L. 2021, c. 169). The SuSI Program replaces the SREC Registration Program (SRP), which was closed to new registration on April 30, 2020 pursuant to the Clean Energy Act, and the Transition Incentive (TI) Program, which provided a bridge between the Legacy SRP and the SuSI Program. A Board Order from March 6, 2023 revised the ADI SREC-II values, effective March 13, 2023. The SuSI Program is made up of two sub-programs: Administratively Determined Incentive Program The ADI Program provides incentives for net metered residential projects, net metered non-residential projects of 5 MW or less, all community solar projects, and, for an interim period, projects previously eligible to seek conditional certification from the Board under Subsection (t). The interim market segment is blocked for 75 MW, while net-metered residential, net-metered non-residential, and community solar (The permanent CS program rules from October 2023 require all CS systems to meet 51% LMI participation and removed the non-LMI incentive) is blocked for 225 MW in energy years 2024 and 2025. The program will accept new registrations for each market segment on a first-come, first-served basis until the block is fully subscribed. Current available capacity is posted on the homepage of the ADI online portal.
An additional $20 adder is available for a public entity, a customer that is a State entity, school district, county, county agency, county authority, municipality, municipal agency, municipal authority, New Jersey public college, or New Jersey public university. The Interim Subsection is available on an interim basis for solar facilities certified as being located on brownfield, historic fill, or properly closed landfills. Registration opened on August 28, 2021. Competitive Solar Incentive Program This program provides competitively set incentives, as bid by developers, for non-residential projects with nameplate capacity over 5 MW. See the Competitive Solar Incentive Program description in DSIRE for more information. | |||||||||||||||||||||||||||||||||||||||||||
Successor Solar Incentive (SuSI) Program - Competitive Solar Incentive | Board of Public Utilities | 12/13/22 | 04/24/24 | 22480 | By Board Order 12-7-22-8C on December 7, 2022, the New Jersey Board of Public Utilities established the Competitive Solar Incentive (CSI) Program as part of the Successor Solar Incentive (SuSI) Program. The SuSI Program was established to replace the SREC Registration Program in July 2021. The SuSI program consists of two sub-programs: Administratively Determined Incentive Program The ADI Program provides fixed incentives for residential and non-residential net metered projects up to 5 MW. See the Administratively Determined Incentive Program DSIRE entry for more information on that program. Competitive Solar Incentive Program The CSI Program Provides incentives for grid supply and non-residential net metered solar projects with nameplate capacity greater than 5 MW. The CSI Program will take applications beginning April 15, 2023. CSI Capacity Targets The Program targets 300 MW of total procurement annually, separated into Tranches. Grid Supply projects must exceed 5 MW-DC capacity. Tranche 1 (140 MW) is Basic Grid Supply with no limitations on project locations. Tranche 2 (80 MW) is reserved for Grid Supply on existing buildings. Tranche 3 (40 MW) is reserved for Grid Supply projects on contaminated sites or landfills. Tranche 4 (40 MW) is reserved for non-residential net metered projects with capacity exceeding 5 MW. Tranche 5 (160 MW) is a storage target representing 4-hour duration energy storage co-located with 40 MW of solar from the Tranches above. CSI Incentive Determination The CSI Program uses a pay-as-bid valuation mechanism for the SREC-IIs issued by the program. Projects will include a bid for the SREC-IIs awarded to their project and will be paid that fixed amount per SREC-II. A SREC-II Adder is available for projects which include energy storage. The SREC-II Adder is calculated as follows: Normalized Storage Bid * [ Storage Discharge Capacity / (Facility Capacity * 4 hours) ] SREC-IIs will be provided for 15 years of project operations. | |||||||||||||||||||||||||||||||||||||||||||
C-PACE: Garden State Commercial Property Assessed Clean Energy | 12/21/23 | 04/24/24 | 22581 | Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing and a comprehensive list of all PACE programs across the country. Signed into law in 2021, P.L. 2021, c. 201 established the Garden State Commercial Property Assessed Clean Energy program. The bill directs the New Jersey Economic Development Authority (NJEDA) to create the C-PACE program. Municipalities will may join the Program by adopting an opt-in ordinance and entering into an agreement with NJEDA. Counties may also establish a local C-PACE program pursuant to a local C-PACE program ordinance to facilitate the financing of C-PACE projects throughout municipalities in their jurisdiction. Through this program, property owners can acquire funding for energy efficiency improvements on eligible properties. Funding is secured through a special assessment lien on the improved real property. C-PACE can be used for new construction, renovation and standalone energy projects. Financing is provided by private capital providers who meet the program’s criteria. The terms of a financing will not be longer than the forecast life of the improvements. In order to acquire financing, all tax payments, charges, and assessments with respect to the property shall be current, the legal or beneficial owners of the property shall not be subject to any bankruptcy proceeding, and the subject property shall not be the subject of a bankruptcy proceeding. The principal amount of the C-PACE assessment, when combined with mortgage loans and other lien obligations on a property shall not exceed 90 percent of the appraised value of the property after including the value created by the C-PACE project. The maximum duration of a C-PACE assessment, shall not exceed the weighted average useful life of the improvements in the C-PACE project or 30 years, whichever is less. The amount of the C-PACE assessment for a property shall be a specific amount, and the terms of repayment of direct financing shall be solely determined and negotiated between a property owner and capital provider. A property owner seeking a C-PACE assessment shall receive written consent of the existing mortgage holders on the property prior to the closing of the financing. |