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New Jersey Clean Energy Symposium Rowan University - June 18, 2004 New Jersey Clean Energy Program Renewable Energy Programs and Policies.

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Presentation on theme: "New Jersey Clean Energy Symposium Rowan University - June 18, 2004 New Jersey Clean Energy Program Renewable Energy Programs and Policies."— Presentation transcript:

1 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 New Jersey Clean Energy Program Renewable Energy Programs and Policies

2 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 New Jersey Clean Energy Program Societal Benefits Charge for EE and RE (~$125M/year) NJBPU - oversight Office of Clean Energy- serves as the state energy office and administers the NJCEP program funds. New Jersey Clean Energy Council – advisory to Board and Board staff BPU administers and implements the renewable energy programs. Energy efficiency programs are transitioning to the BPU Implementation contractors – “feet on the street” Growing number of State agency partners.

3 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 Renewable Energy Program CORE Program: The Customer Onsite Renewable Energy Program provides rebates of up to 70% of the installed cost for renewable energy systems such as solar, wind and sustainable biomass systems. Projects up to 1 MW. REAP Program: The Renewable Energy Advanced Power Program provides incentives and financing for renewable electricity generation facilities. Projects over 1MW. REED Program: The Renewable Energy Economic Development Program provides incentives, business loans and comprehensive business assistance to renewable energy companies for growing their business and employment in New Jersey.

4 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 Renewable Program Plan 2004 CORE $44 M REAP $16 M REED $6.35 M FREE $6.3 M REDO $6 M Demonstration Program $2M Manufacturing Incentive $2M

5 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 CORE Program Program transitioned to BPU administration and implementation in April Solar systems since then, 22+ MW commitments average of 200 kW per week MW of biomass and 305 kW wind. Actually Installed: Solar 2.4 MW, Wind ~ 30.4 kW, Biomass 300 kW, Fuel Cell 900 kW Up to 70% of installed cost for systems smaller than 10 kW, up to 60% for systems larger than 10kW up to 1 MW for solar. Biomass and wind up to 60% for 10kW.

6 New Jersey Clean Energy Symposium Rowan University - June 18, 2004

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8 REAP Program Provides combination of grants and guaranteed low interest long term financing for renewable electricity generating facilities in New Jersey. Wind, Solar and Sustainable Biomass. $50 Million budget for Solicitation on njcep.com.

9 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 REED Program 1 st Solicitation issued in Feb. ’03 Received 33 proposals, totaling ~ $12M 10 renewable energy companies received $2.7 M for manufacturing innovation, commercialization efforts and product financing.

10 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 REED for 2004 Funding will be given as “venture funds” As the firm starts making a profit, the “grant” is paid back. $5M in funding, solicitation issued in November ‘03

11 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 Financing Programs Two new financing programs complement the rebate and incentive programs. Loan guarantees for businesses implementing renewable energy and energy efficiency projects Loan pool for local government units and schools.

12 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 Using Policy as a Driver RPS doubling for 2008 Solar requirement of 120,000 MWh by 2008 translates into roughly 90 MW Simplified interconnection Increased capacity limit for net metering

13 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 Renewable Portfolio Standard Solar Requirement Requirement for all electric suppliers. Ramping up requirement 2004 through 2008 Renewable Energy Certificates - attributes Alternative Compliance Payment set by BPU. Published Oct. 6 for public comment, promulgated March 17, 2004.

14 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 Net Metering and Interconnection Updating net-metering and interconnection standards (subchapter 9). Increasing net-metering capacity to 2 MW from 100 kW. Making interconnection processes, simplified, transparent and time delimited. Due to be published in early November 2004.

15 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 Introducing the SREC A solar renewable energy certificate (SREC) and is the “attribute” of solar electric generation, unbundled from the actually delivered energy; and is measured in 1 SREC/MWh. Solar electric generation is electricity from photovoltaics or other solar technologies.

16 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 SREC Requirement by Year EY % ~3.6 MW EY % ~ 6.12 MW EY % ~ 22.5 MW EY % ~ 46.7 MW EY % ~ 90 MW

17 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 The SREC Market The BPU set an alternative compliance payment for SRECs of $300 per MWh or $0.30 per kWh. This puts a ceiling on the price of the SREC. The prices will vary, but the expected price for 2004 should be between $ $0.25.

18 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 How it Works Customer-generators with solar systems can request a SREC after they generate one or more MWhs. The administrator, through an online registry, will set up an account for SREC holders. SREC buyers will make offers $ to SREC holders. SREC holders can sell when they are satisfied with an offer. The administrator will verify the generation and the sales.

19 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 Financial Example A 100 kW Solar energy system costs $650,000, the systems receives a rebate of $390,000 (60%) for a system cost of $260,000. The energy savings over 30 years are $526,830. SREC value adds an additional $51,650 in the first five years for total revenues of $578,480 Net profit is $318,480 or 122% ROI First five years: $61,980 energy savings + $51,650 SREC = $113,630.

20 New Jersey Clean Energy Symposium Rowan University - June 18, 2004 Resources Renewables --Subscribe to the list serve!!!!! Energy Efficiency Office of Clean Energy B. Scott Hunter New Jersey Board of Public Utilities Office of Clean Energy


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