New Jersey's Board of Public Utilities announced in December 2023 that its permanent Community Solar Energy Program had received more than three hundred applications totaling more than three hundred megawatts of proposed solar capacity, well above the state's initial allocation for the program year. The response confirmed strong developer interest in building solar projects that serve customers who cannot install panels on their own roofs.

How Community Solar Works

Community solar is an arrangement that lets households and businesses subscribe to a portion of a shared solar project built somewhere else. Subscribers receive credits on their utility bills for the share of electricity their portion of the array produces, even though they never physically take the power from those panels. The model opens solar to renters, condo owners, and homeowners whose roofs are shaded, poorly oriented, or structurally unsuitable for rooftop installations.

In New Jersey, the Board of Public Utilities sets the rules for who can build projects, how customers subscribe, and what savings subscribers receive. Developers compete for capacity allocations through an application window and then build the projects over the following year or two.

The Permanent Program

New Jersey operated a community solar pilot program from 2019 through 2023 to test the model. After those pilots demonstrated strong demand, the Board made the program permanent in August 2023, giving developers and financiers confidence that the market would continue rather than expire.

The Board opened the first application window under the new permanent rules in November 2023 with an initial capacity allocation of two hundred twenty-five megawatts for Energy Year 2024. By December, the program had received applications for more than three hundred megawatts, demonstrating that developer interest significantly outpaced the initial allocation.

Prioritizing Low- and Moderate-Income Subscribers

One of the most distinctive features of New Jersey's program is its subscriber mix requirement. Every community solar project must serve at least fifty-one percent low- and moderate-income subscribers, measured by subscribed capacity. That standard ranks among the most ambitious low-income mandates of any state community solar program in the country.

The requirement directly addresses a long-running critique of solar subsidies, that the bulk of benefits flow to wealthier households with the capital and credit to install rooftop systems. By tying community solar expansion to LMI participation, New Jersey ensures that the new capacity produces real savings for households that most need them.

Subscriber Savings

LMI subscribers in New Jersey community solar projects typically see bill credits that exceed their subscription costs, producing net monthly savings. Non-LMI subscribers also receive savings, though usually at a smaller margin. Because most projects offer subscriptions with no long-term commitment and no up-front cost, the product is an accessible way for households to participate in the clean energy transition.

Participating utilities, including PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric, handle the billing mechanics. Subscribers see a line item on their bill indicating the solar credit they earned that month.

Siting and Project Types

The Board prioritizes projects built on rooftops, parking lot canopies, brownfields, and landfills rather than on greenfield sites where solar could compete with farmland or open space. That preference aligns with New Jersey's broader clean energy goals and with local concerns about preserving the state's limited undeveloped acreage.

Subsequent program expansions allocated additional capacity specifically for landfill and brownfield sites, recognizing the added engineering complexity and cost of building on those properties. Giving developers a dedicated carve-out helps unlock sites that would otherwise struggle to compete with easier rooftops and greenfield locations.

Why the Program Matters for Homeowners

For New Jersey homeowners, community solar offers a way to cut electric bills without installing panels on their own homes. Many older homes have roofs in poor orientation for solar, tree shade that limits production, or roof conditions that would require replacement before installation. Community solar bypasses all of those issues.

Homeowners who have already installed rooftop solar can still subscribe to a community project if their net metering agreement allows additional credit sources, though most rooftop owners have already covered their electric use with their own system. Community solar is most valuable to renters, condo owners, and homeowners who cannot put panels on their own property.

How to Subscribe

Homeowners interested in community solar can visit the New Jersey Board of Public Utilities community solar page for a list of currently enrolling projects. Subscribers sign up with the developer, provide their utility account number, and begin receiving credits once the project reaches commercial operation. Most projects require no down payment, no contractor visits to the home, and no long-term commitment beyond a short notice period to cancel.

LMI-eligible households often receive priority placement in available capacity, and in some cases the subscription carries no subscription fee at all, meaning the full value of the bill credit flows to the subscriber.

Broader Clean Energy Context

New Jersey has set aggressive clean energy goals, including targets for renewable power and electrification of heating and transportation. Community solar is one piece of a broader strategy that also includes offshore wind development, utility-scale solar auctions, residential solar incentives, and energy storage procurements. Together, these programs aim to decarbonize the state's electric grid while keeping energy affordable for consumers at every income level.

Looking Ahead

The strong early response to the permanent program has already prompted the Board to consider future expansions, including a multi-thousand-megawatt expansion of total program capacity. For homeowners paying close attention to electricity bills, the growth of community solar creates new opportunities every year to lock in savings while supporting the state's clean energy transition.

NJ Community Solar Program Tops 300 MW in New Applications