New Source of Financing for Customers Choosing Solar
MAYS LANDING, N.J. - Atlantic City Electric today filed a Solar Financing Program with the New Jersey Board of Public Utilities (BPU). The filing complies with and responds to a BPU order requiring the Company to develop a program to encourage the continued development of solar projects in New Jersey and increase the state’s solar electric generating capacity. If approved, the Company will enter into long-term agreements to purchase solar renewable energy certificates (SRECs) from eligible customers who invest in new photovoltaic systems for their homes and businesses.
New Jersey ’s Renewable Portfolio Standards (RPS) require that 20 percent of the state’s electricity comes from renewable sources by 2020, and includes 2.12 percent for solar energy. This will be the nation's largest solar commitment relative to population and electricity consumption. In addition, the New Jersey Energy Master Plan has aggressive goals for increased reliance on solar power as an energy source. The BPU believes this program will help support the transition to a market-based approach of delivering cost-effective incentives for new solar electric generation.
The program will function as a pilot for three years after which it will be evaluated to determine if it is still needed. Under this plan, the Company will acquire SRECs at a fixed price set through a competitive bidding process. The SRECs will then be sold to electric suppliers and providers who have to comply with the state’s RPS requirements. The proposal is subject to regulatory approval. Atlantic City Electric has requested that all program-related costs, and any authorized incentives, less any revenues from the sale of the SRECs, be collected through a Solar Pilot Cost Recovery Charge.
Atlantic City Electric, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe, reliable and affordable regulated electric delivery services to more than 545,000 customers in southern New Jersey.