New Jersey Approves Largest Community Solar Expansion in U.S. History

New Jersey approved a massive 3,000-megawatt expansion of its community solar program this week, marking the largest capacity allocation in state history and the biggest expansion of any state-run community solar program nationwide, according to the New Jersey Board of Public Utilities.

The board announced the expansion March 4 as part of a broader energy initiative under Gov. Mikie Sherrill’s administration aimed at addressing rising energy costs while expanding clean power generation across the state.

“Today’s actions advance Gov. Sherrill’s clean energy goals while continuing the board’s commitment to balancing affordability and promoting clean, in-state energy resources,” said NJBPU President Christine Guhl-Sadovy. She described solar and battery storage as the fastest and most cost-effective way to build new generation, according to the board.

The community solar expansion will provide clean energy savings for approximately 450,000 subscribers, the board said. Project registrations opened March 6 and will remain available through Dec. 31, 2029, or until all 3,000 megawatts are subscribed.

The board also cleared incentives for 355 megawatts in battery storage while launching a second solicitation. The department projects these battery program awards will generate ratepayer savings totaling more than $169 million over the program’s span.

According to the Natural Resources Defense Council New Jersey, the battery storage awards represent the first ever for grid-scale storage in New Jersey history.

“The state needs all the megawatts of solar and storage it can get to provide clean, reliable, in-state power,” said Eric Miller, New Jersey policy director for NRDC. “The BPU opened new solicitations for even more battery storage, solar, and community solar that will lower energy costs for everyone, especially community solar participants.”

The board simultaneously approved three awards under the third solicitation of the Competitive Solar Incentive Program, totaling 24.12 megawatts of new solar generation. Among these projects, the board said the North Jersey District Supply project at the Wanaque Reservoir would establish the largest floating solar facility in the nation.

The CSI Program uses competitive solicitations to award Solar Renewable Energy Certificates to eligible grid supply solar, solar-plus-storage, and large non-residential net-metered projects, aiming to secure new solar at the lowest possible incentive cost.

The board described these actions as the most consequential implementation of Sherrill’s energy directives to date. The initiatives support the state’s goal of adding 3,750 megawatts of new power by 2026 under the Solar Act of 2021.

New Jersey’s existing community solar program has already delivered significant benefits to residents. To date, the program has provided more than $70 million in bill credits and $14 million in net savings to more than 37,000 subscribers, according to the board. The state currently operates 162 community solar projects totaling 228 megawatts.

The board said launching the next round of solicitations so closely to the third round awards preserves a steady pipeline of private solar investment. The fourth round of CSI calls for basic grid supply projects of 20 megawatts or larger.

To protect ratepayers, the board established confidential price caps against high bids and waived bid fees for projects that participated in previous solicitations.

Miller emphasized the broader economic and environmental benefits of the expansion. “New Jersey must continue to invest in in-state generation to support the state’s ambitious climate and clean energy goals and grow good-paying union jobs,” he said.

The community solar expansion represents a significant step in New Jersey’s transition to renewable energy while providing direct financial benefits to hundreds of thousands of residents through reduced energy costs.