JERSEY UTILITY TO FINANCE SOLAR

The only problem for photovoltaic solar installations is a simple one: The cost of buying a system is high. It is the 2nd or 3rd most expensive purchase most consumers will ever make, after their residence and, maybe, their car. And incurring the expense is much like pre-paying the electric bill for 5 to 10 years while adding nothing to what is available: The lights and appliances already have power.

A variety of public and private programs have emerged to finance the expense. Many banks offer clever home refinance programs. The City of Berkeley, California, introduced a most innovative idea. It buys the solar system and lets the homeowner pay it off via property tax supplements coupled with power bill reductions. (See BERKELEY BREAKTHROUGH SOLAR FINANCE PLAN PASSES)

The state of New Jersey will allow its biggest utility to finance solar installations. $105 million in loans from Public Service Electric & Gas will go to state businesses and residences to spur investment in solar power and help the state meet its goal of getting 20% of its power from New Energy. Interestingly, the move required a crucial compromise.

As much as the utility wanted to make the loans and the people of the state wanted them, the Board of Public Utilities (BPU) wanted to do ITS job of protecting ratepayers. It required Public Service to create a subsidiary to provide the loans, set up a program for repayment through the sale of solar energy credits from the systems, got the utility to absorb half the administrative costs and pushed Public Service to cut its interest rate on residential systems from 11.1% to 6.5%.

That’s called responsible regulation. Worth taking note of. Don't see it often these days.

Stefanie A. Brand, director, Division of Rate Counsel/BPU: "This agreement establishes a promising pilot program that we hope will encourage the development of solar energy…We were successful in getting the company to agree to improve the program to provide greater consumer protections and increased ratepayer benefits."

Moderate sun and a serious commitment - a great combination. (click to enlarge)

The Energy People are turning to solar
Tim Johnson, April 8, 2008 (New Jersey Star-Ledger)
and
PSE&G, state agree to solar energy plan
Kevin G. DeMarrais, March 19, 2008 (North Jersey Record)

WHO
Public Service Electric & Gas (Jeanne Fox, President), Board of Public Utilities (BPU)

click to enlarge

WHAT
Final approval was given for up to $105 million in loans to partially finance solar panel installations on homes, businesses and municipal buildings.

WHEN
- The pilot project was unanimously approved by the NJ Board of Public Utilities April 7.
- The loans will only be available to non-residential customers until regulators approve them for residential customers.

Lot's of opportunity. Be the first one on your block... (click to enlarge)

WHERE
- The loans will be granted throughout Public Service Electric & Gas service territory.
- Public Service Electric & Gas is based in Newark.

WHY
- New Jersey’s Master Plan calls obtaining 20% of power from New Energy
- This pilot program is expected to fund 30 megawatts of solar energy.
- Residential loans still need approval from the NJ Department of Banking and Insurance.
- PSE&G loans will cover 40% to 60% of project cost, with the balance funded by the owner of the solar installation.

Historic Fort Dix meets the future's energy. (click to enlarge)

QUOTES
- Jeanne Fox, President, BPU: "Bring your ideas to the board and soon…''
- Public Service Electric and Gas Co.: "We welcome this new opportunity to play a strong role in meeting the state's aggressive renewable and conservation goals, and reduce harmful carbon emissions."