First New Jersey Solar Project Completed Under SREC Only Pilot Program

April 23, 2008

The Solar Center recently completed the installation of a 25 Kilowatt solar electric system for Energy Kinetics Corporation, a New Jersey manufacturer of high efficiency combined heat and hot water systems located in Lebanon, NJ. The solar electric system is mounted on a portion of the roof of its manufacturing facility and will produce approximately 28,700 kW hours of electricity annually. The system is anticipated to save thousands of dollars a year in energy costs and save over 204 tons of carbon dioxide emissions over its operating life.

“The Energy Kinetics solar system is the first system to be installed in New Jersey under a new ‘SREC-Only Pilot Program’, a performance based incentive program developed by New Jersey’s Board of Public Utilities (NJBPU) and administered by the New Jersey’s Clean Energy Program (NJCEP)”, said Dennis Wilson, the President of The Solar Center. “This program be the primary incentive used to support the development of enough solar electric generation to meet New Jersey’s commitment in its Renewable Portfolio Standard(RPS)”.

“The SREC-Only Pilot Program enables Energy Kinetics to earn tradable Solar Renewable Energy Certificates (SRECs) from the metered electrical production of the solar system”, said Wilson.

Under the SREC-Only program, energy generators that supply electricity within New Jersey must provide a portion of their electricity from solar electric systems. Those suppliers that do not have solar facilities must either buy SRECs from solar producers or pay a Solar Alternative Compliance Payment (SACP) penalty to the BPU in lieu of purchasing SRECs. The production of each 1000 kWh of solar electricity earns one SREC, which have sold as high as $265 each during 2007.

The value of each SREC is expected to jump for SRECs produced after May 31, 2008, when the SACP level more than doubles. Energy Kinetics can utilize a 30% Federal Investment Tax Credit (FITC) and rapid depreciation of the solar asset to reduce its tax bill. The savings from tax credits combined with income from SREC earnings and electric bill savings will enable Energy Kinetics to recover its investment within eight years and enjoy the production from the solar system for at least thirty years.

As Energy Kinetics’ President, Roger Marran states, “This important project has allowed us to turn our philosophy of renewable energy and conservation of fossil fuels into a reality. By maximizing clean, solar energy to manufacture our flagship product, System 2000, homeowners and business owners can conserve energy currently embodied in oil and gas and extend our efficient use of available fossil resources.”

The NJBPU expects that new SREC-Only Pilot Program will be a more viable incentive than the previous commercial rebate program and will have minimal impact on electric rates long term. This transition from rebates to performance based incentives is expected to allow for the increased installation of solar generating capacity in 2008 and beyond.

To learn more about New Jersey Solar opportunities contact 

Hutchinson Business Solutions …….. Your CFO on the Go

Creating Opportunities Today……Providing Savings for Tomorrow

Visit our website to learn more about opportunities for savings.  

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