New Jersey’s Framework for Long-Term Solar Value
New Jersey remains one of the most mature solar markets in the United States, thanks to structured state-backed programs that balance investor certainty with clean energy expansion. The Successor Solar Incentive (SuSI) Program, launched by the New Jersey Board of Public Utilities (NJBPU), replaced the legacy SREC programs with a stable, production-based incentive designed to drive commercial and community-scale solar development. The SuSI Program consists of two primary components:- The Administratively Determined Incentive (ADI) – for smaller, behind-the-meter projects and community solar.
- The Competitive Solar Incentive (CSI) – for larger grid-supply and commercial projects.
ADI Program: Predictable Incentives for Onsite and Community Solar
The Administratively Determined Incentive (ADI) is the backbone of New Jersey’s distributed solar market. It provides fixed incentive payments per megawatt-hour (MWh) of solar energy produced for 15 years—creating predictable income streams for smaller projects.Who Qualifies
- Behind-the-meter commercial projects under 5 MW (on rooftops, parking canopies, or ground-mounts).
- Community solar projects that serve local subscribers.
- Public and nonprofit entities, including schools, municipalities, and emergency service facilities.
Incentive Structure
Rates under the ADI are administratively set by the NJBPU and vary by project type and size. For most commercial and industrial applications, incentive values fall within the $80–$110 per MWh range, providing stable revenue regardless of energy market volatility. The incentives are issued as Solar Renewable Energy Certificates–Successor (SREC-II), tradable credits reflecting actual energy production.How to Apply
- Preliminary Application: Developers or property owners submit system details to the NJBPU via the Clean Energy Program portal before construction begins.
- Approval and Commitment: Once approved, projects receive an incentive commitment letter outlining the rate and term.
- Post-Construction Certification: After commissioning, the system’s production is metered, verified, and tracked to generate SREC-II credits over time.
CSI Program: Competitive Bidding for Larger Projects
For larger-scale or grid-supply systems, the Competitive Solar Incentive (CSI) Program provides a market-based mechanism to allocate incentives efficiently.Who Qualifies
- Projects greater than 5 MW (dc), typically grid-supply or wholesale systems.
- Commercial developers or institutional property owners hosting large-scale solar assets.
- Projects interconnected to the distribution or transmission grid within New Jersey.
Incentive Structure
Unlike the fixed-rate ADI, the CSI operates through periodic competitive solicitations (auctions). Developers submit bids indicating the incentive level per MWh required to make their project financially viable. Winning bids receive 15-year incentive commitments based on the awarded price, paid per MWh of verified production. The process ensures efficient allocation of state funds while rewarding developers who can deliver projects cost-effectively.How to Apply
- Register for the CSI Solicitation: Review upcoming solicitation schedules and guidelines at NJ Clean Energy CSI Program.
- Submit a Bid Package: Include project location, design specifications, interconnection status, and requested incentive level.
- Award and Contract Execution: If selected, the project receives a 15-year incentive commitment subject to NJBPU oversight and post-construction verification.
