New Jersey's Energy Master Plan Is Focus of Remarks By Solis Partners Managing Director at Solar Conference

Energy Master Plan Offers Long-Term Map That Evaluates and Quantifies Ratepayer Benefits, He Says

NEWARK, N.J. (June 17, 2011) - It's no secret that New Jersey's emergence as a leader in the solar industry is due to aggressive state incentives and policies, which many feared were in jeopardy with the release of the state's new Energy Master Plan (EMP) draft. But Jamie Hahn, managing director of Solis Partners, believes the plan reaffirms the importance of promoting in-state generation of clean energy sources, including expanded commercial scale projects. 

Hahn made his remarks on the EMP and its effect on New Jersey as a solar leader at a panel discussion on the New Jersey solar market at the recent Distributed Solar Summit East 2011 in Newark, N.J. Solis Partners is a leading developer and integrator of commercial solar energy systems based in Manasquan, N.J.

Participants at the three-day summit, including commercial, industrial and non-profit solar developers, investors, lenders, photovoltaic suppliers, utilities, contractors and installers, explored how to take full advantage of the booming solar market. The event also provided opportunities for industry stakeholders to connect, build relationships and discuss deals.

Hahn highlighted the major effects of the EMP on New Jersey commercial solar, including promoting the development of solar projects that provide the greatest net economic and environmental benefits to the ratepayer, such as brownfield and landfill site development and net-metered solar facilities, which directly offset electric loads and shave peak demand for large commercial industrial users, which consequently decreases the cost of conducting business in New Jersey. The plan provides no further support for additional farmland solar development, he noted.

"Energy must be viewed as an industry in order to stimulate job growth during this difficult economic period and beyond," said Hahn. 
Hahn pointed out that New Jersey has created a very strong foundation over the last three to four years for a long-term, sustainable solar marketplace. However, he said, it will be very important for the industry to normalize appropriately as it adjusts to the evolving market, thus avoiding the fits and starts that have characterized some European markets. Hahn also stressed the importance of consistent public policies, as opposed to knee-jerk reaction. 

A cornerstone of the new EMP is a 20 percent reduction of the Solar Alternative Compliance Payment (SACP), which is the amount that Load Serving Entities, such as electricity suppliers, must pay per megawatt hour of solar electricity that they are unable to generate themselves. The SACP serves as a ceiling on the prices paid for SRECS, which represents the environmental benefit of the solar electricity

Hahn said that with the supply and demand market mechanism starting to work, this level of reduction may not be necessary, Hahn noted.
"I think it is a blessing in disguise that the market had a precipitous drop prior to the release of the EMP draft," said Hahn

Hahn also pointed out the new EMP, in combination with the expiration of federal incentives due at the end of the year -- the Treasury Grant, which returns 30 percent of solar projects' upfront costs, and 100 percent Bonus Depreciation, which allows system owners to depreciate 100 percent of the system's value in the first year -- will cause the overall market to consolidate, ultimately creating an environment for a higher standard in the New Jersey solar market, Hahn noted

Consolidation is good for the long-term health of the solar industry, said Hahn.  "It will take some time to reset customer expectations and redefine the underlying project assumptions -- how to correctly value a project," said Hahn. "But overall, I do not see a lack of commitment and certainty in the draft plan. It will be important that this be looked at as a long-term plan and that we correctly evaluate and quantify the benefits to the ratepayers."
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About Solis Partners: Solis Partners is a leading developer and integrator of solar power systems for commercial, industrial and utility clients. Solis Partners designs, engineers and constructs leading-edge, optimized solar power systems, enabling customers to meet their long-term energy needs while reducing operating costs and addressing their carbon liabilities. Solis is a comprehensive partner, offering the complete solution for both solar and roofing. Solis Partners is headquartered in Manasquan, N.J. For more information, please call (732) 800-0052, or visit www.solispartners.com.