New Jersey Renewable Electricity Mandate Status

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Renewable Mandate Status: Not on Track

  • 2009 Estimated Qualified Renewable Generation: 1.53%[i]
  • 2009 Renewable Mandate: 6.5%
  • 2021 Renewable Mandate: 22.5%

Eligible Resources: Class I: solar, wind, wave or tidal, geothermal, landfill gas, anaerobic digestion, fuel cells using renewable fuels, and certain forms of biomass (requires Dept. of Environmental Protection approval).[ii] Class II: hydropower facilities 30 MW or less and resource-recovery facilities approved by DEP and located in NJ[iii]. An additional solar carve-out mandate exists on top of this two-class structure[iv].

Compliance schedule:[v]

[table id=22 /]

Renewable Portfolio History: Original RPS adopted in 1999 with a target of 4% Class I and 2.5% Class II by 2012;amended in 2004 requiring targets to be met by May 2008 and specifying that 0.16% of sales come from solar. Board of Public Utilities revised RPS again in April 2006 increasing required percentages of Class I, Class II, and solar to a total of 22.5% (2.12% solar) by May 2021[vi].Board of Public Utilities required to freeze the solar carve-out requirement if determined that its cost will exceed 2% of total retail price of electricity that year (annual increases remain in effect despite a freeze)[vii].

Credit Trading: Yes

Noncompliance penalty: The alternative compliance payment is $50 per MWh[viii] with a separate solar alternative compliance payment for the solar carve out of $711 per MWh in 2009 declining to $594 per year MWh in 2016.[ix]

Electricity Price Ranking: 7th Highest[x]

  • 14.37 cents/KWh in New Jersey
  • 7.67 cents/KWh in non-mandated states

[i] N.J. Admin. C. 14:8-2.3 (Sept. 1, 2001),

[ii] N.J. Admin. C. 14:8-2.5 (Sept. 1, 2001),

[iii] N.J. Admin. C. 14:8-2.6 (Sept. 1, 2001),

[iv] N.J. A.B. 3520 (Jan. 17, 2010),

[v] N.J. A.B. 3520 (Jan. 17, 2010),

[vi] Database of state Incentives for Renewables and Efficiency, New Jersey,

[vii] N.J. A.B. 3520 (Jan. 17, 2010),

[viii] New Jersey Board of Public Utilities, Clean Energy Order Docket No. EX03080616,

[ix] New Jersey Board of Public Utilities, New Jersey Approves Solar REC-Based Financing Program,

[x] EIA, Electric Power Monthly, Table 5.6.B., Average Retail Price of Electricity, June 2010, Released Sept. 15, 2010,

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