No one is surprised to learn that California is one of the top states in the U.S. for solar energy production. The news that New Jersey recently beat out California to become number one in solar installations may be cause for a double-take, however. Bolstered by Solar Renewable Energy Credits, or SRECs, that require public utilities to pay solar system owners for the energy they generated, the industry saw a sudden boom over the past few years.
Recently the price of SRECs has dropped significantly — down to $135 from almost $700 just last year — and the industry’s rapid growth has slowed to a crawl. So State Senate President Steve Sweeney (D-West Deptford) and Senator Bob Smith (D-Middlesex) have introduced new legislation that would give it a boost.
According Rebecca Forand of the Gloucester County Times, Senate bill S1925 — also called “the solar rescue bill” — would require utility companies to purchase more each year than are currently needed by law, increasing the demand, and therefore increasing the value of the credits. The bill will also create a cost ceiling of $325 per certificate beginning in 2014 — so utility companies wouldn’t be forced to pass off increases to their ratepayers.
“As the solar industry has boomed over the past few years in New Jersey, it has become an economic engine for good, well-paying construction and installation jobs throughout the state. But with the dramatic fall of solar energy incentive prices, there is a serious concern that development and installation of solar systems will dry up and these hobs will be lost,” Sweeney said in a written statement. “This legislation will stabilize the market and encourage businesses and individuals to continue to purchase and install solar equipment on their property.”
Of course critics will say that an industry that needs propping up is already a failure, and we shouldn’t be forcing utilities to foot the bill. What we must realize is that utilities, even public ones, are in it to make a profit. So of course they’d rather buy “cheap” fossil fuels or nuclear energy. The problem is that these energy sources, in addition to being finite, take their toll on the economy in other costly ways. Not to mention that we’ve been propping up the oil and coal industries with massive tax subsidies for years. If we’re going to get America on track to energy independence, it’s time to level the playing field.
Photo: A photovoltaic carport project located at the Atlantic City Utility Authority. Credit: thenationalguard/Flickr