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Bill

A 2524

Permits dual-use solar energy projects to participate in community solar program.*

2026-2027 Regular Session Introduced by Rosy Bagolie and 5 co-sponsors

Expands community solar to include dual-use agrivoltaics on farmland, enabling bill credits, with strict caps, rules, and a path to 3,000 MW by 2029.

Substituted by S3939 (2R)
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Bill Summary · A 2524

Summary of Bill A-2524 (Session 222, New Jersey)

Purpose and Intent

  • This bill adds dual-use or agrivoltaics solar facilities to the scope of New Jersey’s Community Solar Energy Pilot Program, making them eligible to participate in the program and receive bill credits and related incentives.

Key Provisions and Changes

Community Solar Program Expansion

  • The bill amends existing law (P.L.2018, c.17) to explicitly permit dual-use/agrivoltaics facilities to join the Community Solar Energy Pilot Program.
  • Dual-use facilities are defined as energy-generation projects that place solar panels on unpreserved farmland while preserving continued agricultural or horticultural use of the land below and around the panels.

Administrative and Program Rules

  • The Board of Public Utilities (BPU) must, within specified timeframes, adopt rules under the Administrative Procedure Act to establish:
    • A Community Solar Energy Pilot Program allowing customers of electric public utilities to participate in remotely located solar projects within their utility service territory.
    • A mechanism to credit participating customers’ utility bills for the electricity generated by their project participation.
  • The rules must cover:
    • Project size cap: maximum of 5 megawatts per project.
    • Overall annual capacity limits for pilot projects.
    • Geographic limitations and eligible customer participation.
    • Minimum number of participating customers per project.
    • Credit value and timing on customer bills.
    • Land-use standards to limit land impact.
    • Access provisions for low- and moderate-income customers.
    • Methods to ensure broad residential and commercial participation (including multifamily housing).
    • System interconnection standards and measures to minimize distribution-system impacts.
    • Transparency via publicly available project information.

Program Design and Verification

  • The board must establish an application process for project owners seeking to join the pilot, including a verification process to ensure projects generate energy at least equal to the energy credited to participating customers.
  • Projects approved by the board must have at least two participating customers.
  • The board may restrict eligible projects to brownfields, landfills, redevelopment areas, underserved communities, or commercial rooftops.

Cost Recovery and Transition to Permanent Program

  • Electric public utilities may, subject to board review, recover all costs incurred in implementing and complying with these provisions.
  • Within 36 months after adopting the required rules, the board must transition the pilot to a permanent program and issue new rules for the permanent framework, including:
    • Standards for projects owned by special-purpose entities and nonprofit entities.
    • A cap of 5 MW per project (reiterated for the permanent program).
    • Conditional registration goals for large-scale solar projects (225 MW by June 1, 2024; additional 275 MW if applications exceed 225 MW; another 250 MW by June 1, 2025 if applications exceed 500 MW).
    • By October 1, 2025, open registration for 3,000 MW of projects beyond conditional goals, with a completion target of December 31, 2029 or when the 3,000 MW is fully registered.
    • Establishment of SREC-II levels and guaranteed bill credit discounts to facilitate full registration by 2029.
    • Geographic limitations, minimum participating customers, access for low/moderate-income customers, and participation standards (including multifamily housing).
    • Methods to determine the value of bill credits, credit timeframes, and monthly generation verification standards.
    • Interconnection standards and distribution-system impact mitigation.
    • Monthly reporting obligations for project operators, utilities, and customers.
    • Transferability, portability, and buy-out provisions for participants.
    • Auditing and enforcement mechanisms, including income-verification options for low- and moderate-income participants (self-attestation allowed).

Definitions

  • The bill provides definitions for key terms, including:
    • Dual-use or agrivoltaics solar facilities.
    • Solar energy project and solar panel.
    • Solar power.

Effective Date

  • The act takes effect immediately.

Potential Impact

  • Expands access to community solar benefits for agricultural land uses and supports dual-use farming operations.
  • Enables farmers and agrivoltaics projects to participate in community solar, potentially increasing project availability and diversification of project types.
  • Sets explicit project caps and performance/verification requirements to safeguard consumer interests and grid stability.
  • Introduces a structured pathway to scale up to 3,000 MW of new projects by 2029, with associated incentive design (SREC-II) to encourage rapid enrollment.
  • Provides utility cost-recovery rights for implementing utilities, while imposing ongoing reporting and compliance requirements.

Compiled from official sources — confirm details with the bill’s official record.

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