In New Jersey, thanks to state law, solar power is becoming cost effective. Understanding the system: In July 2009, state law mandated that New Jersey electricity companies produce at least 20 percent of their power by renewable means by 2020. To reach that goal, companies now pay people who have photovoltaic solar panels on their grid with tradable certificates called Solar Renewable Energy Credits, or SRECS. Solar-array owners receive a SREC for every megawatt hour they produce, and the Board of Public Utilities maintains a page at www.njcleanenergy.com to track prices, which vary daily. In April 2010, SRECs averaged $573.77.
PSE&G loans you money
Public Service Electric & Gas management decided to loan homeowners a certain percentage of the cost of their photovoltaic array, based on the amount of power it will produce, and the homeowner would pay the utility back with the SRECs, rather than cash.
Susanna Chu, the director of PSE&G’s Renewables and Energy Solutions Solar Loan Program, said homeowners earn an SREC for every 1,000 kilowatt hours (or one megawatt hour) of energy produced. PSE&G will buy those SRECs from residential customers at the going price when the loan is made or at the market rate, whichever is higher. Customers receive regular statements showing how fast the loan is being paid. Full story in APP.
A long story short its cap and trade in N.J, which is not a good thing it regulates the electricity co. to how much they can produce. the few that have these panels are cashing in but it will mean higher bill for the rest of us Cap and Trade is bad
It is a form of Cap & Trade. The Powerlutions guy explained it to me.