SCALING SOLAR ENERGY IN NEW JERSEY: Benefits, Barriers, and Recommendations to New Jersey Solar Deployment

Abstract

Historically, New Jersey has been recognized as a leader in solar energy deployment. Over the past two decades, New Jersey governors of both major political parties have consistently supported solar, a commitment sustained by Governor Phil Murphy’s aggressive renewable energy mandates. At the federal level, the 2022 Inflation Reduction Act (IRA) has catalyzed the solar industry through unprecedented solar investment. In New Jersey, the combination of solar energy tax incentives, renewable energy certificates, cost savings, job creation, and enhancements in grid resiliency have created attractive state policy programs. Despite the advantages presented by New Jersey’s solar initiatives, the industry faces several challenges, including macroeconomic obstacles, grid constraints, resistance from utilities and ratepayer advocates, ineffective state implementation, and political pushback. A Q-sort survey also reveals a division among New Jersey solar experts regarding the state's most significant constraints to scaling solar energy. As the state pursues its ambitious goal of achieving 100 percent clean electricity by 2035, it encounters several barriers that may impede its progress. To overcome the state’s challenges, New Jersey must create a solar energy guide to expand technical assistance for solar subscribers, quantify solar benefits to socialize grid modernization costs, and clarify the solar agenda in the upcoming Energy Master Plan (EMP).