An Act concerning solar power incentives.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. This act shall be known and may be cited as the "Solar Power Incentive Program."

2. a. As used in this section:

"Board" and "electric public utility" shall have the same meaning as provided in section 3 of P.L.1999, c.23 (C.48:3-51).

"Solar panel system" means an elevated panel or plate, or a canopy or array thereof, that captures and converts solar radiation to produce power, and includes flat plate, focusing solar collectors, or photovoltaic solar cells and excludes the base or foundation of the panel, plate, canopy, or array.

b. The board shall establish the Solar Power Incentive Program to provide financial incentives to owners of solar panel systems and to reduce electric grid congestion.

c. The board, in consultation with electric public utilities, shall designate five strategic zones in this State that would benefit from reduced electric grid congestion through the installation of solar panel systems.

d. For solar panel systems installed on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) in strategic zones, as designated by the board pursuant to subsection c. of this section, the board shall reimburse an owner of a solar panel system 15 percent of the cost to install the solar panel system and $1.50 per watt of energy produced by the solar panel system, in a manner determined by the board. The Solar Power Incentive Program shall be limited to solar panel systems having an installed capacity equal to or less than 25 kilowatts for residential systems and 200 kilowatts for non-residential systems.

e. The board shall establish an application process and standards for the Solar Power Incentive Program and make this information available on its Internet website.

f. The board shall use funds collected from the societal benefits charge that is imposed pursuant to section 12 of P.L.1999, c.23 (C.48:3-60) to fund and administer the Solar Power Incentive Program.

3. This act shall take effect immediately and shall expire three years thereafter.

STATEMENT

This bill establishes the Solar Power Incentive Program (program). The purpose of the program is to provide financial incentives to owners of solar panel systems and to reduce electric grid congestion.

Under the bill, the Board of Public Utilities (board), in consultation with electric public utilities, is to designate five strategic zones in this State that would benefit from reduced electric grid congestion through the installation of solar panel systems. For solar panel systems installed in strategic zones after the bill's effective date, the board is to reimburse an owner of a solar panel system 15 percent of the cost to install the solar panel system and $1.50 per watt of energy produced by the solar panel system. The Solar Power Incentive Program is to be limited to solar panel systems with an installed capacity equal to or less than 25 kilowatts for residential systems and 200 kilowatts for non-residential systems. The bill requires the board to use funds collected from the societal benefits charge that is imposed pursuant to section 12 of P.L.1999, c.23 (C.48:3-60) to fund and administer the Solar Power Incentive Program.

The Solar Power Incentive Program is to expire three years after the bill's effective date.