There are encouraging signs that New Jersey’s solar sector may be growing so rapidly that it is beginning to drive down the cost of clean energy.
For the first time in six tries, a utility-sponsored program to promote installation of solar systems attracted enormous interest, with more applicants seeking to participate than ever before in a proceeding overseen by the New Jersey Board of Public Utilities (BPU).
The trend is significant because the program relies on long-term contracts to make the economics work. Many businesses and homeowners in the past have been reluctant to enter into such deals because the price they can get on the spot market for the electricity the solar systems generate is far higher than what they earn under long-range contract, officials said.
That seems to be changing, based on the results of the latest solicitation by three electric utilities. Officials are attributing the reversal to changes made in the program, including expanding it to include projects of up to 2 megawatts in capacity, according to Scott Hunter, renewable energy program administrator in the Office of Clean Energy.
“It allows larger projects,” Hunter said. “It broadens the scope of the projects which can participate in the program.”
Read more: New Jersey Solar Sector Helps Push Down Clean Energy Costs