As more and more states devise ways to promote renewable energy adoption amongst their residents, New Jersey stands out as a leader in the clean energy movement. NJ has constructed over 135,000 solar installations and ranks 10th in the U.S for national solar capacity. The creation of its Community Solar Energy Program has paved the way for community solar to become a trusted solar energy source for New Jersians.
Here is a quick overview of community solar and how New Jersey has made the most of this innovative sourcing method to distribute solar energy to its residents.
What is Community Solar?
Community solar is a solar program that allows households and individuals in one area to collectively benefit from solar energy by subscribing to a local solar farm. Thanks to their subscription, these customers receive solar credits on their monthly electric bills, helping them save thousands of dollars in utility costs over the long run.
Community solar provides:
- A pathway to local economic development for communities that subscribe to a solar farm
- Reduced monthly energy bills of around 15-25%
- Hassle-free access to clean, renewable energy for low to medium income households
- Better health outcomes for underserved populations
Why Is New Jersey a Leader in Community Solar in the U.S?
The pilot Community Solar Energy Program (CSEP) was a statewide initiative to enable New Jersey natives to benefit from the energy and economic benefits of community solar. The program was so successful, with over 16,000 households enjoying the perks of community solar as of 2023, that state officials voted to make it a permanent endeavor. The state also offers incentives to community solar developers like its Successor Solar Incentive (SuSi) Program to ensure that resources are continuously poured into the creation of solar energy facilities.
Moreover, the CSEP initiative is dedicated to supporting low and middle income households in particular. In effect, they represent a demographic that does not have easy access to solar energy due to costs, not owning their homes, or not having the proper infrastructure for it. Thanks to the New Jersey Board of Public Utilities’ vote, every community solar project is required to have at least 51% low-to medium income subscribers. In addition, all projects must guarantee a discount of at least 15% to all subscribers to ensure that they receive some form of savings from the project, and starting in 2025, NJ utilities must offer consolidated billing for community solar, meaning that subscribers won’t have to pay a separate statement for their solar production.
New Jersey has successfully leveraged the potential of community solar to advance its goal of 100% clean energy by 2050 and these efforts are bringing clean energy and savings to residents, especially those that face socio-economic barriers to access solar energy. For more information on how Finray can help you join in on community solar, click here.
Learn how you can help by joining the movement
Written By Alfreda Adote | Edited By Lauren McGregor