Understanding the NJ TREC Solar Program
Making your business more energy-efficient and focusing on renewable energy sources are excellent steps towards increased sustainability. However, eco-friendliness is not the only benefit of factoring renewable energy into your business plan. By concentrating on renewable energy, especially solar, you can save your business money as well.
New Jersey is historically one of the top states for producing solar power and is also known for its renewable energy incentive programs, particularly for solar power production. The Garden State continues to progress in its renewable energy production and incentive efforts with the TREC Solar Program, its newest incentive program.
NJ TREC Program Details
TREC stands for Transition Renewable Energy Certificate, and the TREC program is an intermediate solar plan as the state of New Jersey transitions from the previous incentive program SREC (Solar Renewable Energy Certificates). New Jersey began phasing out the SREC program in 2018 when the state was ahead of schedule on reaching its benchmark of 5.1% of the state's electricity sales being solar energy. New Jersey's solar energy production reached 5.1% in 2019, and a new solar program has yet to be established. Until New Jersey implements a more permanent solar energy incentive program, it will be operating the TREC program as an intermediate incentive program.
How TREC Incentive Value is Determined
The TREC incentive program is based on your solar panel system's productivity, with incentives based on megawatt-hours of solar energy production. Unlike the previous solar incentive program, TRECs have set pricing, making it easier to predict the amount of incentive money your business will receive for its solar production.
With TREC, your incentive value depends on the type of solar panel installation on your property. Suppose your solar panels are installed on landfill or brownfield land or a net-metered, non-residential rooftop or carport. In that case, your TREC incentive has a factor of 1, meaning you will receive the total TREC value for energy production. If your panel system is a community solar project, your TREC incentive has a factor of 0.85, meaning you will receive 85% of the total TREC value. For solar panels on a net-metered, residential ground mount, rooftop, or carport, the TREC incentive is a factor of 0.6, receiving 60% of the total TREC value. This 0.6 factor is also in place for panels installed on net-metered, non-residential ground-mount projects. TREC's total value is fixed at $152 for 15 years, based on 1,000kWh of production.
The Benefits of Investing in Solar Energy
Investing in solar energy for your business or facility is a great way to move towards increased sustainability while also benefiting from New Jersey's renewable energy incentive program. While the specifics of TREC incentives may seem confusing at first, and the process of installing solar energy systems can seem intimidating, having the right information and a professional electrical team can move your business forward with solar energy.
For more information on the NJ TREC program or commercial solar power, call Synergy Electric at (862) 251-7280 or contact us online today!
