SENATE ENVIRONMENT AND ENERGY COMMITTEE

STATEMENT TO

SENATE, No. 4869

with committee amendments

STATE OF NEW JERSEY

DATED:  DECEMBER 1, 2025

      The Senate Environment and Energy Committee reports favorably and with committee amendments Senate Bill No. 4869.

      As amended and reported, this bill would extend to 2035 the date by which the SREC-II program is to meet its new goal of incentivizing the development of at least 750 megawatts of new solar power generation per year.  Under current law, the program’s goal is to incentivize the development of 3,750 megawatts of solar generation by 2026.

     The SREC-II program includes a small solar facilities incentive program.  This incentive would award SREC-IIs to community solar facilities and net metered solar facilities less than five megawatts in size.  This bill expands the goal of the small solar facilities incentive program to provide SREC-IIs for the development of at least 300 megawatts of net-metered solar facilities per year, 3,000 megawatts of community solar facilities between October 1, 2025 and December 31, 2029, at least 150 megawatts of community solar facilities per year thereafter, and 50 megawatts of solar facilities in the remote net metering program, for the duration of the SREC-II program.

      The bill also modifies the SREC-II program’s competitive solicitation process for the award of SREC-IIs to net meter solar facilities greater than five megawatts in size and to grid supply solar facilities by permitting the Board of Public Utilities to establish cost containment measures when conducting competitive solicitation.  Finally, the bill would extend the minimum duration of the competitive solicitation process until 2035.

COMMITTEE AMENDMENTS:

      The committee amendments to the bill modify the new target for the SREC-II program from 6,500 megawatts of solar power by 2035 to 750 megawatts per year until 2035.