Green Jersey

PSE&G’s ‘Solar 4 All’ awaits approval

Photo by Mark Lovretin/PSEG.

by Jennifer Weiss

PSE&G unveiled a five-year, $773 million plan to expand solar energy in New Jersey last week, one that would provide solar power to homes, public schools and municipal governments across the company’s broad coverage area.

The proposal by the state’s largest utility would put a dent in the renewable-energy mandate of the state Energy Master Plan. It also would create hundreds of jobs and eliminate 1.7 million tons of CO2 emissions, PSE&G says — the equivalent of taking nearly 310,000 cars off the roads for one year.

The plan awaits approval by the state Board of Public Utilities and was announced in advance of a move by the federal government to increase tax cuts and spending for renewable energy initiatives, including solar. The federal economic stimulus bill to be signed by President Obama tomorrow includes $20 billion for renewable-energy tax incentives.

PSE&G intends to pay for the project with bonds and internally generated funds, said spokesman Michael Jennings. Ratepayers’ monthly bills would rise 10 cents in the first year and as much as 35 cents in subsequent years to help cover the costs. PSE&G would be able to sell the electricity and renewable energy credits, and would be eligible for federal tax credits.

If approved, PSE&G’s proposal would install solar panels on about 1 in 4 utility poles in PSE&G’s coverage area and every town and school district would get an installation on a building of its choosing, according to the company. It would also satisfy almost 7 percent of the state’s renewable energy requirements by 2020.

“PSE&G, with its access to capital markets and the ability to wait for an extremely long time to make back its investment with a return, is a logical choice to engage in this kind of activity,” Jennings said.

The utility hopes to begin work on the project within the year.

A similar, smaller-scale proposal in North Carolina was shot down by state regulators who determined that Duke Energy was unfairly burdening its customers with rate hikes to pay for the project when it could get solar through third-party providers more cheaply.