ARTICLE UPDATED ON 9/6/2019
The New Jersey Community Solar Pilot Program is set to open up the world of community solar for the Garden State. The program, which will allow utility customers to avail of solar panel installations located away from their property, is another step forward for the growing community solar sector. Below, we’ve summarised some of the key explanations found on the New Jersey Clean Energy website.
Filing the Application
- The program rules are here, the application form is here, and you can find submission addresses here.
- Year 1 application deadline is September 9, 2019 @ 5pm.
- There is no fee, you should answer all questions on the application and there is no limit to the number of forms submitted by one applicant.
- Incomplete applications will not be considered in this submission period.
- Existing solar projects may not apply for requalification as community solar projects.
- A delineated map is a map of the community project site.
- There are no penalties for withdrawing a project after approval.
- Subsection (r)/Subsection (t) approvals are not required to apply for this program.
- One project per application form.
- Certifications may be notarized in a state other than NJ if the signatory is located in a different state.
- Staff cannot advise who should be listed as 'Applicant', 'Project Owner', or 'Solar Developer' as these will differ between projects.
- You must complete every section and answer every question except those clearly marked as optional. If there are changes to any aspect of the project noted in the original application, please notify the Board in writing within 30 days.
Siting & Permitting
- Go here for information about the NJDEP Office of Permit Coordination and Environmental Review.
- Go here to learn about preserved/non-preserved sites and municipal boundaries.
- If the NJDEP Office of Permit Coordination and Environmental Review explicitly states that, after review, no meeting is necessary, then attach the email stating this to the application.
- Concerning the nature/location of projects, all projects are considered on a case-by-case basis during review.
- A developer may submit applications for multiple co-located community projects, but specific rules apply. Consult here.
- There is no minimum project size.
- Geographic restriction is up to the applicant, as long as the EDC service territory remains the same. This distance is considered in the evaluation criteria.
- If a proposed community solar facility is located on a rooftop, parking lot, or parking structure, then the applicant is exempt from completing the NJDEP Permit Readiness Checklist, and also from meeting with the NJDEP’s Office of Permit Coordination and Environmental Review.
- There are no restrictions with regards to land ownership for the project site.
- Site control is defined as “property ownership or option to purchase, signed lease or option to lease, or signed contract for use as a community solar site or option to contract for use as a community solar site.” No other evidence is acceptable as proof of site control.
- Appendix C of the Application Form covers all evaluation criteria. No further information regarding the scoring process will be provided.
- Co-located solar facilities are permissible, subject to Board review via the application process.
- If submitting multiple applications for multiple sites owned by a single entity one single proof of site control is allowed, providing that the proof, which explicitly references the associated site, is included in each application.
Selecting the Projects
- The evaluation committee will review each application.
- Projects must score a 30 point minimum to be considered.
- Those projects scoring sufficiently will be presented to the Board in ranked order until the allocated program capacity for the year is filled.
- Year 1 allocated capacity is 75 MW.
- Individual projects may not exceed 5 MW.
- All applications will be reviewed following the submission deadline. There is no set date to hear back.
- You may not begin construction prior to the Board’s selection.
- Landfills are not required to be capped at the time of application.
- Further details of evaluation criteria and scoring systems are available here.
- All projects will be reviewed following the September 9th deadline. There is no time limit on review/approval of submitted projects.
- No capacity has been allocated thus far. All applications will be reviewed together following the close of the application period on September 9th.
Authorizations & Exceptions
- A project holding a subsection (t) conditional certification from the Board prior to 2/19/2019 is considered an “existing solar project”. However, a special provision in the form enables application under specific strict conditions. Review the application form.
- In this scenario, comply with all conditions applicable to the special circumstances.
Low & Moderate Income Projects
- Please consult the official New Jersey Clean Energy FAQ here for information on what constitutes proof of LMI status.
Interconnection
- Projects may file interconnection application prior to Board selection - at their own risk. This is neither an advantage/disadvantage for evaluation.
- A submitted/executed interconnection agreement is not required prior to application.
- A net metering interconnection application will not suffice for a community project.
- Available EDC capacity hosting maps are linked here.
- Interconnection of community projects in this program will be handled through EDCs, not PJM.
- Only Board-approved projects may be assigned a spot in the interconnection queue by EDCs.
Bill Credits
- Value of bill credit will be set at retail rate, minus non-bypassable charges, at subscriber’s rate schedule.
- Program rules don’t require a specific nature/duration of contracts between Community Solar Subscriber Organizations and project subscribers.
- Non-bypassable charges are defined in this order issued by the Board.
- Customers purchasing electricity from a third-party supplier are eligible to participate in community solar.
Incentives & SRECs
- Community solar projects are eligible, prior to any energy delivery, to apply via a once-off election for SRECs/Class I RECs.
- Community projects may not register with the SREC Registration Program before Board selection. Prior registration must be withdrawn and resubmitted upon Board approval.
- Further info on SRECs and other incentives can be found here.
Project Milestones
- Approved projects are expected to begin construction within 6 months of approval and become fully operational within 12 months.
- The Board may grant extensions for certain circumstances, providing the project can demonstrate significant progress towards these milestones.
- Extensions are considered on a case-by-case basis.
- Issuance of RFPs/RFQs by public entities will be considered with regard to extension requests.
- Further details of RFPs/RFQs here.
Subscribers
- A list of community solar subscriber organizations can be found here.
- The Community Solar Energy Pilot Program rules state that “[…] Subscriber organizations shall send an updated list to the EDC once per month".
Other Info
- Follow this link to sign up for the NJ Clean Energy listserv and stay informed about the program.
- No information about submitted applications will be published while the application window remains open.
- On page 15 of the application, in the section "X. Community Engagement", the line ""the municipality in which the project is located," refers to the municipality in which the solar system would be built.
- If you have a question which is not answered by the in-depth New Jersey Clean Energy FAQ, you can contact communitysolar@njcleanenergy.com, but please note that you will not receive a response, instead all responses will be posted on the aforementioned FAQ page.
Hopefully this blog has answered some of your questions and given some insight into the New Jersey Community Solar Pilot Program. Please do consult the official FAQ linked throughout this article for a more in-depth examination.
If you want to learn more about solar in New Jersey, particularly community solar, or even pursue your own solar project, contact YSG Solar here or call us at 212.389.9215. We’d love to hear from you.
Follow YSG Solar on Twitter, Facebook + Instagram:
By Shane Croghan
Sources:
https://njcleanenergy.com/renewable-energy/programs/community-solar/FAQs
https://njcleanenergy.com/renewable-energy/programs/community-solar
Featured Image Source: By Adithyavr - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=63378546
