New Jersey looks to increase support for solar

Tuesday, January 10, 2012 @ 09:01 AM
posted by rene5432

New Jersey residents will soon have even more reason to invest in a solar power system if a new proposal makes it through the state legislature, according to AOL Energy.

New Jersey has supported the growth of the solar energy industry with the help of a policy known as renewable portfolio standards. These standards require utility companies to produce a certain proportion of renewable electricity.

However, homeowners and businesses can benefit from this by installing solar power systems and selling what are known as solar renewable energy certificates. Utilities can treat these certificates as having produced a certain amount of renewable electricity, while the people selling them can profit even more from a system that is already helping to reduce their electricity bills.

However, SRECs depend upon supply and demand, so as more people have added solar installations, their price has fallen from more than $600 each at the start to less than $200 at their lowest point, according to SRECTrade.

Now state legislators hope to reverse this trend by increasing the percentage of renewable electricity must come from solar power, creating higher demand for the SRECs and more support for further growth in the industry.

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