WeVote
Log In

Bill

Bill

S 3939

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

2026-2027 Regular Session Introduced by Linda Greenstein and 1 co-sponsor

Allows dual-use agrivoltaic solar projects on non-preserved farmland to participate in New Jersey’s Community Solar program, earning bill credits like other projects.

Reported from Senate Committee with Amendments, 2nd Reading
0
WeVote Research Nonpartisan
Bill Summary · S 3939

Overview

S 3939 (Session 222, New Jersey) authorizes dual-use or agrivoltaics solar facilities to participate in the Community Solar Energy Program. The bill amends P.L.2018, c.17 to expand eligibility for participation in community solar to projects that combine solar energy with agricultural or horticultural production on non-preserved farmland. It preserves the core structure of the community solar program while explicitly permitting dual-use projects to join and receive the program’s bill credits and related incentives.

Purpose and Intent

  • Expand access to the Community Solar Energy Program by explicitly permitting dual-use (agrivoltaics) facilities to participate.
  • Align incentives for dual-use projects with the community solar program, enabling farmers and developers to receive bill credits for customers who participate in remote solar projects located within the utility’s service territory.
  • Ensure that dual-use projects remain subject to the same program rules and standards applied to other community solar projects, with specific reference to land use compatibility and verification of energy crediting.

Key Provisions

  • Definition updates (Section 1, subsection g):
    • Introduces and defines “Dual-use or agrivoltaics solar facilities” as energy generation facilities on unpreserved farmland that allow ongoing agricultural or horticultural use on and around the land beneath and beside solar panels.
    • Keeps standard definitions for “Solar energy project” and “Solar panel” to be used in the community solar context.
  • Eligibility and participation (Section 1, subsections a–d, f):
    • The Board of Public Utilities (BPU) must establish a Community Solar Energy Pilot Program, with rules aimed at enabling customers to receive bill credits for remotely located solar projects within their utility territory.
    • Sets specific program design parameters, including project size caps (up to 5 MW per project), program-wide capacity limits, geographic and participation requirements, credit values, land-use standards, and access for low- and moderate-income customers.
    • Creates an application process and verification standards to ensure projects generate at least as much energy as is credited to participating customers, plus consumer protection measures.
    • Projects approved for the pilot must have at least two participating customers; the Board may restrict eligible projects to brownfields, landfills, redevelopment areas, underserved communities, or commercial rooftops.
  • Rates, cost recovery, and program transition (Section 1, subsections e, f):
    • Electric utilities may recover costs incurred implementing and complying with the act, subject to Board review.
    • The Board must convert the pilot into a permanent program within 36 months after adopting the required rules, with detailed rules for permanent program operations.
  • Permanent program standards (Section 1, subsection f, paragraphs 1–17):
    • Establishes ongoing project caps (maximum 5 MW), geographic and participation requirements, customer access provisions, and credit value methodologies.
    • Sets monthly generation verification, annual reporting by project operators and utilities, transferability and portability of credits, and buy-out mechanisms.
    • Includes auditing and enforcement provisions to ensure compliance, including access for low- and moderate-income customers and credible billing credits.
    • Allows, in a board-determined manner, self-attestation of income for low- and moderate-income residential participation.
  • Registration and incentive framework (Section 1, permanent program subsection f):
    • Sets conditional registration goals for total installed solar capacity (e.g., 225 MW by June 1, 2024; additional allocations if demand exceeds supply; further 3,000 MW target open for registration by Oct 1, 2025, with deadlines through 2029 or until full registration).
    • Requires setting SREC-II levels and bill credit discounts adequate to achieve registration objectives.
  • Effective date: Immediate.

Who/What Is Affected

  • Dual-use or agrivoltaics solar facilities (new eligibility within the community solar program).
  • Owners of solar energy projects seeking to participate in community solar (subject to BPU standards and registration processes).
  • Electric public utilities and their customers (who would receive monthly bill credits for participating in community solar projects and incur program-related costs, subject to cost recovery and ratemaking oversight).
  • Low- and moderate-income customers (explicit access protections and income verification options).
  • BPU (responsible for rulemaking, program administration, verification, enforcement, and transition to a permanent program).

Procedural and Timeline Aspects

  • Pilot program rules to be adopted within 210 days after enactment.
  • Conversion of the pilot program to a permanent program required within 36 months of rule adoption.
  • Permanent program rulemaking must address project ownership types (special purpose entities and nonprofits) and include various standards (capacity limits, geographic and customer participation rules, credit mechanics, verification, reporting, and enforcement).
  • Conditional/target registration milestones for the permanent program:
    • 225 MW conditional registrations by June 1, 2024 (with potential expansion if applications exceed targets).
    • 275 MW additional by June 1, 2024 if needed.
    • 250 MW additional by June 1, 2025 if needed.
    • Open registration for 3,000 MW of solar projects by Oct 1, 2025, with a deadline of Dec 31, 2029 or until full registration is achieved.
    • SREC-II levels and bill credit discounts set to achieve complete registration by 2029.

Potential Impacts and Considerations

  • Expands market opportunities for agrivoltaic projects by enabling access to community solar incentives, potentially increasing agricultural land-use efficiency and diversification of farm income.
  • Implications for land-use planning, environmental considerations, and grid interconnection with an emphasis on minimizing distribution-system impacts.
  • Increased options for low- and moderate-income participation in solar via accessible project locations and income-verification flexibility.
  • Administrative complexity for the BPU in designing pilot/permanent program rules, monitoring compliance, and ensuring equitable crediting across customers.

Note: This summary reflects the bill text and official statement provided.

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

Sign in to ask a question.