Approximately $143 million in funding available
NEWARK, N.J., Nov. 10 /PRNewswire/ -- Public Service Electric and Gas Company
(PSE&G) today received approval from state regulators to expand its innovative
solar loan program by approximately $143 million to finance the installation
of an additional 51 megawatts of solar energy systems on homes, businesses and
municipal buildings throughout its electric service area.
Since the utility's initial Solar Loan Program was approved by the New Jersey
Board of Public Utilities in April 2008, customers have applied for loans
totaling $105 million that would result in 30 megawatts of installed solar
capacity. Today's new initiative will result in a total of $248 million
available for loans and 81 megawatts of solar power for New Jersey.
"There's no question that providing a source of stable, secure capital --
especially in our tough economy -- has helped boost the number of solar energy
systems in New Jersey," said Ralph LaRossa, president and COO of PSE&G. "With
today's BPU approval, this expanded program will support the development of
another 51 megawatts of solar energy to help our state meet its aggressive
renewable goals and reduce carbon emissions. We're pleased to do our part to
make New Jersey a leader in solar energy installations, second only to
California."
Filed with the New Jersey Board of Public Utilities (BPU) in March 2009, the
Solar Loan II Program was reviewed by the BPU staff, the Department of the
Public Advocate, solar developers and installers, and other utilities. These
discussions led to a settlement agreement that resolved various issues, paving
the way for today's approval by the BPU.
Here are the major components of the Solar Loan II Program as approved by the
BPU:
-- PSE&G's solar program will be open to all of its electric customers,
including residential, commercial, industrial and
municipal/governmental. The solar systems would be owned by the
borrower
of the loan, typically the developer or the host customer.
-- The program will be available for two years and applications will be
accepted on a first-come, first-served basis until 51 megawatts of
projects have been developed. Projects in this program may not exceed
500 kilowatts (a typical residential system is 7 kilowatts).
-- PSE&G would provide loans to developers or customers to cover about
half
of the cost of a solar installation project, depending on the
projected
output of the solar energy system and the cost of the system. The
borrower would repay the principal, plus interest, over 10 years for
residential customers and over 15 years for all other borrowers, a
considerably longer investment timeframe than traditional lenders are
willing to provide for solar installations.
-- The remaining project cost would be funded by the owner of the solar
system. The owner may also be eligible for a federal investment tax
credit and rebates from the NJ Clean Energy Program.
-- Borrowers of the loan would repay the loan with cash or with Solar
Renewable Energy Certificates or SRECs, which are created every time
the
system generates solar electricity. It takes one megawatthour of solar
generation to create one SREC, which has value in the marketplace. An
SREC is a New Jersey tradable product that represents the clean energy
benefits of electricity generated from a solar energy system. Under
the
Solar Loan II program, the SRECs are guaranteed to be valued at no
less
than an agreed price as approved today by the BPU.
-- Initially, the SREC floor price for residential systems is $450, for
non-residential systems up to 150 kw the price is $410, and for
systems
larger than 150 kw up to 500 kw it is $380. The floor prices offered
for
SRECs for new loan applications will be reduced by about 3-6 percent
every 6 months.
-- PSE&G's electric customers will pay for the cost of the solar program
through the RGGI Recovery Charge (RRC), which is included in the
delivery part of their monthly bill. PSE&G will sell the SRECs it
receives for loan repayment in an auction, and credit the proceeds
from
the sale to customers through the SPRC, which will offset a portion of
the program costs. The average residential customer who uses 722
kilowatthours in a summer month and 6,960 kilowatthours annually will
pay about 36 cents more per year than they do now.
In addition to the loan program, PSE&G has begun to implement its Solar 4 All
program, investing $515 million in 80 megawatts of solar projects that will
help double the state's solar capacity and create additional green jobs. The
utility is installing solar panels on 200,000 utility poles and street lights
in about 300 communities. PSE&G also will develop solar gardens and roof-top
installations on facilities it owns and also at third-party sites.
Customers interested in learning more about PSE&G's Solar Loan Program should
visit www.pseg.com/solarloan, send an email to solarloan@pseg.com or call
973-430-8460.
Public Service Electric and Gas Company (PSE&G) is New Jersey's oldest and
largest regulated gas and electric delivery utility, serving nearly
three-quarters of the state's population. PSE&G is the winner of the
ReliabilityOne National Achievement Award for superior electric system
reliability. PSE&G is a subsidiary of Public Service Enterprise Group
Incorporated (PSEG) (NYSE: PEG), a diversified energy company (www.pseg.com).
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SOURCE Public Service Electric and Gas Company (PSE&G)
Karen Johnson, +1-973-430-7734
