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How Do You Know How Much You Can Earn Through New Jersey’s TREC System?

Green Bolt
How Do You Know How Much You Can Earn Through New Jersey’s TREC System

Solar energy initiatives are popping up throughout the United States. Yet, the Garden State is one of the East Coast’s most invested participants. Statewide initiatives to incentivize solar power for New Jersey residents is commonplace and growing as the need intensifies.

New Jersey’s TRECs are one of those glowing incentives that help New Jersey residents leave the light on without paying a fortune for it.

What are New Jersey TRECs?

TRECs New Jersey, or the New Jersey Transition Renewable Energy Certificate Program, is a renewable energy system with a variable reward, depending on a Factor rating. A TREC is created each time a solar system produces  1,000 kWh (kilowatt-hours). The more kWhrs r a system produces, the more TRECs you will receive.

To most people, solar energy is still a new and evolving concept. Therefore, the idea of having a flexible per-month price point that is depending on a possibly volatile market can be unsettling. Moreover, solar is a long-term commitment. After all, both incentives and the agreement could stay with you for ten to fifteen years.

That is why the TRECs New Jersey initiative that replaced the SREC’s initiative in 2019 has some benefits over the original program. The price point of this system is dependent on the type of solar system you purchase and its factorization.  It is then fixed at that price point for the term, as opposed to the previous model which involved market volatility..

Breakdown of Earning Potential through TRECs New Jersey

Currently, the value of TRECs in New Jersey is $152 per year for 15 years for commercial projects. If a commercial solar project generates about 50,000 kWhrs per year, his is the equation it would follow:

$152 per TREC x 50 TRECs = $7,600

A home on the other hand,  will earn a percentage of .6 based on the “net metered, residential: ground mount, rooftop, or carport” factor, making the equation based on 12,000 kWhrs/annually look like this:

$91.20 per TREC x 12 TRECs x 0.6 = $1,094

Factors that Impact Earnings

There are a plethora of factors that impact earnings. Here are some of the most common factors:

  • Landfill or brownfield installations: 1.0 Factor
  • Net metered, non-residential rooftop or carport: 1.0 Factor
  • Community solar: 0.85 Factor
  • Net metered, residential: ground mount, rooftop, or carport: 0.6 Factor
  • Net metered, non-residential ground mount: 0.6 Factor

The NJ BPU controls these factors, and these factors apply to each solar project. When a project has a 1.0 Factor, it will receive the full TREC incentive value. However, if a solar project falls below the 1.0 Factor, it will only receive a fraction of the incentive value..

In summary, if you are a New Jersey resident who qualifies for TRECs New Jersey, you could be saving a lot of money, both monthly and long-term, by receiving this incentive.
For more information or to start the process toward saving your wallet and helping the environment, visit TRECs New Jersey today.

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