How does the NJ TREC solar incentive structure provide a guaranteed 15-year financial return?
The TREC incentive of $152 (15.2c per kWh) is guaranteed by the state of New Jersey for 15 years for the total output of the solar installation. Unlike previous solar incentive programs in NJ, the TREC incentive is a fixed, consistent financial engine that produces clearly defined long term project economics.
As the name suggests, the TREC program is transitional and is currently slated to phase out at the end of 2020.
The TREC incentive is targeted to drive increased solar installations in existing infrastructure such as rooftops, parking lots and brownfield applications. You can see in the chart below the value of the TREC incentive for ground mount and residential applications are discounted by 40%.
The TREC factors are defined based on the chart to the right.
For traditional commercial/industrial applications the program is set up as a “behind the meter” implementation. This means that the solar installation is connected on the client side of the utility meter and is sized to offset the actual electrical demand. The contracting vehicle is typically a Power Purchase Agreement (PPA) which links commitments of solar production by the developer with energy use by the owner/tenant.
This guaranteed revenue stream can be utilized to address everything from a new roof, dramatically reducing energy costs or creating a monthly revenue stream from a rooftop lease. The solar contract can be tailored to balance the benefits to both the owner and the tenants of all facilities.
Contact Brightcore Energy to quickly get to a layout and indicative economics for a solar solution for rooftop or parking canopy.
Click here for more frequently asked questions about the NJ TREC Solar Program.