The Price of Success: Inside the NJ Clean Energy Program

[jpak]

http://www.renewableenergyaccess.com/rea/news/home

Trenton, New Jersey The overwhelming response to the New Jersey Clean Energy Program (CEP) rebate system has contributed to significant delays for commercial and residential rebate approvals -- hurting many solar companies that are supposed to benefit from the program.

The issue has brought solar professionals, government officials and financiers together to craft a workable solution that will free up delayed projects and get the CEP -- one of the best incentive based programs in the country -- running smoothly again. But some in the industry say the New Jersey Board of Public Utilities (BPU) has not acted quickly or decisively enough to mitigate the financial blow to solar companies.

The rebates, which formerly covered up to 60 percent of an installed solar system, had been a great success. And as a result, there are now many applications sitting in a queue. Both the rebate levels and consumer demand have been very high. In an effort to temper the program and limit applications, rebates have been lowered 5 times in 15 months.

Also, to meet the strong solar goals of New Jersey's Renewable Portfolio Standard (RPS), the BPU made a large number of commitments to solar projects. However, those commitments exceeded the CEP budget through 2008, putting a 9-month halt on up to 200 projects.

<more>