Utilities must review grid connection requests for covered solar projects

Electric public utilities must accept, process, and respond to complete requests to connect covered solar projects to the grid. The application requirement covers community solar projects and remote solar projects serving public entities on electric lines rated at 34.5 kilovolts or less. Review follows the Board of Public Utilities’ connection rules. Approval is not guaranteed. Solar and battery storage applicants must pay estimated study costs upfront and cover required connection costs, including grid upgrades. Electricity customers cannot be charged those connection costs unless the board’s connection rules allow it. The law takes effect immediately upon approval.

The community solar program accepts eligible projects measuring five to 20 megawatts in direct current, up to a combined limit of 300 megawatts. Projects must be on commercial or industrial rooftops, landfills, contaminated sites, or mining sites. Projects must show they cannot connect through the PJM regional wholesale electricity market in Transition Cycle 2 or earlier, or through the specified federal route for qualifying power producers. Projects registered or awarded incentives in another New Jersey solar program before this law took effect need a Board of Public Utilities finding of a unique project-specific reason to transfer. Applicants in the competitive solar incentive program’s fourth round are eligible only if they receive no award. The board may set different incentive levels by project size and type. This registration route is available through December 31, 2028.

The Board of Public Utilities may approve solar facilities sharing the same property or neighboring properties after a developer asks for permission. This applies to facilities registered or seeking participation in New Jersey’s small-solar, competitive solar, community solar, and remote net metering incentive programs. Facilities must be separate projects or project phases with separate grid connections. Sharing a site must result from grid connection constraints. Facilities cannot receive better incentives than one combined project unless the board finds a unique project-specific reason.

Covered solar projects receive at least 33 months from program registration to begin operating. This covers community solar and remote net metering projects on commercial or industrial rooftops, landfills, contaminated sites, or mining sites. A utility’s permission-to-operate letter must confirm that the project has begun operating. Facilities that miss their deadline may register again even if the program’s capacity limit has been reached. The minimum 33-month period starts when the project registers in the applicable program.