NJ and Federal Incentives

7/30/2019 NJ and Federal Incentives

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New JerseysRenewable Energy Incentives:Past, Present, and Future

Matthew Singer


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RPS

Electricity suppliers with retail customers instate

Must procure 20.38% of sold electricity fromrenewable energy resources by 2021

Goals by classification

Class 1 = 27.88% by 2021 Solar, Wind, Geothermal, Landfill Gas, Tidal, Fuel Cells,

Biomass, and Tidal

Class 2 = 2.50% by 2021 Hydro 30 MW or less & Resource Recovery


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NJ RPS ScheduleEnergy Year

(EY)Solar Carve-Out

(GWh)Class I

(%)Class II

(%)

2010 -- 4.685 2.5

2011 306 5.492 2.5

2012 442 6.320 2.5

2013 596 7.143 2.5

2014 772 7.977 2.5

2015 965 8.807 2.5

2016 1150 9.649 2.5

2017 1357 10.485 2.5

2018 1591 12.325 2.5

2019 1858 14.175 2.5

2020 2164 16.029 2.5

2021 2518 17.880 2.5


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NJ Electricity by Fuel Type


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RPS Cont


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RPS Cont

2010

MWh sold in NJ

Total electric industry = 79,179,427 MWh

EY 2011 RPS requirements

5.492% Class I = 4,348,534 MWh

2.5% Class II = 1,979,486 MWh


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Past Incentives

Customer On-Site Renewable Energy Program(CORE)

Ended 12/31/08

2008 budget falls $20 million short of rebateapplications on hold

Renewable Energy Incentive Program (REIP)

Solar- ended 12/31/10


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SREC Registration Program (SRP)

REIP Solar rebates not available to new projects

New projects register for SRECs through SRP

Must register prior to construction

Rebated projects through REIP solar programdo not need to submit SRP materials

15 year SREC shelf life


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SREC Pricing

Oversupply of SRECs EY 2012 & 2013 requirements already satisfied

Feb. 2012 SRECS = $205

Legislation to increase RPS (S.2371) failed

Remedies? Reauthorize incentives Accelerate RPS schedule Banks SRECs


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SREC Pricing

EY 2012 RPS requirement = 442,000 SRECs

596,800 - 611,000 SRECs predicted for EY 2012

Predicted SREC generation = 135 138.3%

Supply > Demand


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Biopower


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REIP: Biopower Eligibility

Energy crop or waste has a sustainable supply

Biogas satisfies NJs emissions standards

Allowable fuel manufacturing processes: Anaerobic digestion

Gasification

Pyrolysis


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REIP: Biopower Incentives

Net metered

Rates

Capacity Rebate Rebate w/ CHP

First 500,000 watts $2.00/watt $3.00/watt

Next 500,000 watts $1.00/watt $2.00/watt


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Small Wind Systems (SWS)


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REIP: Wind Incentives Rebates

Based on expected energy production not capacity

Federal Investment Tax Credits (FITCs)

Class 1 Renewable Energy Certificates (RECs)

Net Metering

Residential SWS 30% net cost of system

Business SWS 30% gross cost of system &accelerated depreciationschedule


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REIP: SWS Program Delays

Wind program currently on hold

No new application processing or rebate

commitments

Based upon the comments receivedStaff does

not feel the proposed changes adequately protectpublic safety -OCE


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Business Energy Investment Tax Credit

(ITC)Expires 12/31/2016


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ITC Eligibility

Solar (30% exp w/ no max)

Eligible

Electricity

Heating/Cooling Process Heat

Lighting

Not Eligible Passive

Pool Heating


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ITC Eligibility cont

Fuel Cell (30% exp w/ no max)

Cap = $1,500/kW

Pre 10/4/08 = $500/kW

Minimum Capacity = 0.5kW

Electricity-only efficiency = 30% +


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SWS (30% w/ no max post-12/31/08)

Up to 100 kW eligible

$4,000 max credit 10/3/08 1/1/09 Removed by ARRA


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Geothermal (10% exp w/ no max)

Eligible equipment Heat pump (HP)

Equipment used to produce/distribute/use energyfrom deposit

Geothermal electric up to but not including

transmission

Geothermal heat (minus HP)- no exp date oncredit (post 10/3/08)


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Micro-turbines (10% exp w/ no max)

Cap = $200/kW

Up to 2MW capacity eligible

Electricity-only efficiency = 26%+


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CHP (10% exp w/ no max)

Up to 50 MW

Must exceed 60% energy efficiency Not applicable to systems using 90%+ biomass


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Renewable Electricity Production Tax Credit

(PTC)


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PTC Eligibility

Marine/Hydrokinetic = min 150 kW

Agricultural Livestock Waste = min 150 kW

In Service Deadlines

12/31/12 Wind

12/31/13

Biomass/Geothermal/LFG/MSW/Marine/Hydro


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PTC Amounts 2.2/kWh

Wind

Geothermal

Closed-loop Biomass

1.1/kWh

Open-loop Biomass

LFG

MSW

Marine/Hydrokinetic


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PTC Future

American Wind Energy Association (AWEA)

Failure to extend PTC Annual installations = 2GW Jobs 78,000 41,000

Extending PTC to 2016 Annual installations = 8-10 GW Wind supported jobs grow to 95,000

MAKE Consulting

Rushed build cycle for 2012

Reduced development plans for 2013


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PTC Future cont

PTC extension amendments not passing

Failed to pass twice Payroll Tax Cut Bill

Highway & Highway Safety Bill

American Energy & Job Promotion Act (S.2201)

2 year extension to Wind PTC

Proposed expiration = 1/1/2015 1 year extension to biomass, geothermal, landfill

gas, trash, hydropower, marine, and hydrokinetic

Proposed expiration = 1/1/2015


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Energy Freedom &Economic Prosperity Act

(EFEPA)


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EFEPAS.2064

Senator Jim Demint (R- SC) Senator Mike Lee (R- UT)

Would repeal all energy specific tax credits Revenue Neutral

Reduction in corporate tax rate

Voted down as S. Amdt. 1589 26 - 72

H.R. 3308 (equivalent to EFEPA) Mike Pompeo (R- KS)

Documents

NJ and Federal Incentives