Did you know that New Jersey currently has enough solar panels installed to power 547,324 homes?
If you’ve recently heard about the ending of the NJ SREC Program and the development of TRECs, you may be wondering what this program is and how you can benefit from it.
That’s why today, we’ve created this quick guide to help you understand what TRECs is. Keep reading to learn more!
Conversion of NJ SREC to TRECs
The lawmakers in New Jersey have decided to end the SREC program and replace it with TRECs. This is because the current SREC market is very unpredictable, and it costs the ratepayers too much.
The conversion to TRECs will happen by June 2021 or when 5.1% of the total electricity that the state of New Jersey produces comes from solar power. Whatever comes first is when this transition program will begin.
What Is TRECs?
The TRECs program is similar to SREC in that TRECs will be provided two owners of a solar system for every megawatt-hour of electricity their solar system creates.
Another similarity that the TRECs program shares with the SREC program is that utilities can be purchased to meet the solar carve-out quota that’s noted in New Jersey’s RPS.
What’s the Difference Between TRECs and SRECs?
The introduction of the TRECs program highlighted two main differences between TRECs and SRECs.
The first difference is that TRECs prices are lower than the current SRECs prices. This will provide individuals who own solar panel systems to lower their savings, which will cause them to be eligible for the TREC program.
In addition, the other difference is that TRECs are factorized. This means that the different types of solar panel systems will receive different types of subsidies.
This means that depending on the category of that your solar panel project falls into; you would be eligible to receive a specific percentage of the total TREC value.
However, you should be aware that the price of TRECs will be stable throughout an entire year. The value of TRECs will not be influenced by any market factors.
There have been two options approved by the Solar Transition Program, which have outlined the price of TRECs.
Option one will provide solar panel systems with a flat rate of $152 per megawatt-hour for 15 years. The second option is a flat rate of $65 4 years one through free. After you’re free, be fixed price will be $189 for 12 years.
Understanding How You Can Benefit From NJ’s SREC Transition
By having a solid understanding of how the NJ SREC program is ending and what the transition into TREC will look like, you can understand that solar will be more affordable than it previously was.
Offering a fixed TREC rate will allow solar system owners to save more than was originally discussed in the SREC program.
Are you interested in investing in a solar system that will help you to save money? Click here to learn more!