New Jersey
Background
With strong leadership from state government (especially the Board of Public Utilties) and local solar advocates, New Jersey has put together some of the best pro-solar policies in the country — and as a result, currently has the second-largest solar program in the nation after California. New Jersey provides financial support through both a public goods charge, giving solar system owners a rebate on their capital costs; and through their Renewable Portfolio Standard, allowing system owners to sell solar renewable energy credits, on a per kWh-generated basis, to local load serving entities.
New Jersey also has the country's best interconnection and net metering policies (PDF). The policy provides net metering for systems up to 2 MW, with no cap on overall enrollment. As a result, the state is smoothing the road for low-cost installations.
Next Steps
From a policy infrastructure perspective, New Jersey has all the key elements. The focus going forward is on successful administration and implementation — which is never an insignificant detail. The state just passed an expansion of the Renewable Portfolio Standard requiring about 1,500 MW of solar by 2020. Finding the appropriate balance of funding between the public goods charge and the RPS will be a challenge going forward. Local advocates are exploring municipal solar programs as well.