PSE&G Receives Green Light To Expand Successful Solar Loan Program
November 10 2009 - 1:32PM
PR Newswire (US)
Approximately $143 million in funding available BPU approves
additional 51 megawatts to spur further development of solar energy
systems 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
http://www.pseg.com/solarloan, send an email to 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
(http://www.pseg.com/). Want to know what's new at PSEG? Go to
http://www.pseg.com/getnews and sign up to have our press releases
and weekly environmental commentaries sent right to your inbox.
DATASOURCE: Public Service Electric and Gas Company (PSE&G)
CONTACT: Karen Johnson, +1-973-430-7734 Web Site:
http://www.pseg.com/
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