New Jersey’s Solar Power Industry: Trends, Challenges, and Growth
In recent decades, solar energy in New Jersey has been rapidly advancing, becoming a key component of the state’s energy sector. This is directly facilitated by legislative changes and strategic investments that further strengthen solar panel financing.
With an increase in installed solar power capacity and the implementation of innovative technologies in residential and commercial construction, the state ranks among the largest producers of solar electricity. According to New Jersey’s energy profile, in 2022, it ranked 10th in this regard and 5th in small-scale solar energy production.
In this article, we will analyze the history, issues, and trends of the green energy transformation, as well as solar companies in New Jersey.
The History of Solar Industry Development in New Jersey
As far back as 1999, the state adopted the Renewable Portfolio Standard (RPS), which is one of the most significant policies for the development of the solar power industry in New Jersey. Subsequently, the Public Benefits Fund and the restructuring law for electric power companies were enacted, mandating municipal utilities to implement clean metering (billing system for electricity).
New Jersey also has its own Clean Energy Program (NJCEP), aimed at providing various incentives, programs, and services for state residents. Thus, starting from the 2000s until now, the state has successfully increased renewable energy levels. For example, the RPS program required municipal enterprises to receive 4% of retail electricity sales from natural sources by 2012.
In 2018, New Jersey authorities once again increased the requirements for RPS. By 2025, the target is to reach up to 35% of income, and by 2030, up to 50%. As an addition to the program, municipal enterprises were also required to increase the share of solar power usage to 5.1% by 2021.
Trends in Solar Energy and Its Availability Level
Solar industry tendencies in New Jersey reflect the growing global interest in sustainable energy and the reduction in the cost of solar technologies. The state is actively installing solar panels in residential and commercial construction and other innovative approaches to their use.
Regarding other development directions, we observe the implementation of another Competitive Solar Incentive (CSI) Program in New Jersey. Launched in 2022, CSI is designed for a two-year trial period and aims to supply electricity and large solar power plants with clean meters. The program also provides additional incentives for the development of clean energy companies. Such enterprises can receive incentives if their energy supply and non-residential sector projects have a capacity of more than 5 megawatts and comply with environmental and energy standards.
Another direction of solar industry growth in New Jersey is the launch of the Dual-Use solar pilot program. Its essence is to use one piece of land for agricultural production and solar panels. Additionally, the Garden State plans to modernize its grid shortly to increase solar energy generation volumes and reduce renewable energy costs.
How Affordable Are Solar Panels for Residents of the Garden State?
Based on data from the SolarReviews consumer review website, solar panel installations in New Jersey average $2.78 per watt. A standard solar system with a capacity of 6000 watts (6 kW), taking into account the federal solar energy tax credit of 30%, will cost $11,676.
The Federal solar investment tax credit applies to all systems installed from January 1, 2017, to December 31, 2034. It is available to anyone who orders solar panels for their home or business. There are also other additional financing options from the best solar companies for installing solar batteries.
The legislative framework and regular infrastructure investments are also aimed at supporting stable growth and development of solar energy in the Garden State. All this makes the region one of the key players in the field of green energy transformation. Many solar companies in New Jersey are successfully operating thanks to favorable conditions and advantages for development. Therefore, every resident of the state can join the renewable energy industry by choosing their solar panel provider.
What Challenges Does the Solar Industry Face in New Jersey?
Solar power in New Jersey maintains a high level of interest among both ordinary residents and municipal enterprises. However, we also observe some difficulties. While the state previously led in the number of solar installations, it now ranks 10th. This setback is attributed to the transition from the TREC to the Successor Solar Incentive (SuSI) Program by the BPU, which did not yield the expected results.
New Jersey is not one of the sunniest states. However, on average, you can observe 206 sunny days per year here. Therefore, Garden State confidently holds average positions in terms of sunlight availability and solar panel potential. Thus, New Jersey receives enough sunlight to make the solar industry a viable investment option.
Other solar adoption problems persist not only in New Jersey but also in other regions:
- Delays in connecting solar systems
- Grid modernization, which is still gaining momentum
- Weak interconnection in some areas
- Some issues with installation permits
Local authorities and the best solar companies in New Jersey are making maximum efforts to address these existing problems. Hence, we see evidence of the resurgence of the Garden State as a leader in solar energy production.
What Is the Future of Solar Energy in the State of New Jersey?
The U.S. Energy Information Administration predicts that solar energy will be the primary driver of growth in the nation’s energy sector by the end of 2025. Within the next two years, 79 gigawatts of new solar capacity are also planned to be commissioned. These plans reflect the commitment to expanding the role of renewable energy sources both nationally and in New Jersey.
Source: EIA
Other energy experts also favor the solar industry. In an interview with Utility Dive, a representative from the EIA expressed support, stating,
“New capacities will increase the share of solar energy in the total electricity generation to 6% in 2024 and 7% in 2025 compared to 4% in 2023.”
New Jersey solar power as an investment option is beneficial for the environment and your budget. It is also attractive because it significantly saves energy costs, especially in the long term.
Unveiling the Path to Sustainable Energy in New Jersey
Renewable energy sources are inexhaustible and provide stability and sustainability for many years. Solar panels help:
- Reduce the cost of electricity
- Preserve the environment
- Reduce greenhouse gas emissions
- Conserve natural resources
After studying the latest solar industry news and forecasts for New Jersey, it becomes evident that installing solar panel is a sufficiently advantageous option. The state experiences substantial solar energy growth fueled by fresh investments and government incentives. However, attention should also be paid to certain challenges, such as difficulties with planning or obtaining installation permits.
Nevertheless, the region maintains steady technological development, receives support from local authorities, and benefits from federal programs for the advantageous acquisition of solar installations. Therefore, investing in solar panels in New Jersey is a promising option to ensure long-term energy sustainability in the future.
Make the right decision and experience all the benefits of renewable energy!
About the Author/s
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.
