New Jersey Proposes To Allow Opt-out Enrollments For Certain Community Solar Projects

Also Directs Development Of Options For Consolidated Billing For Community Solar

October 2, 2020

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Reporting by Paul Ring • ring@energychoicematters.com

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The New Jersey BPU has issued a proposed rule by which municipal-owned, 100% low- and moderate-income (LMI) community solar projects may submit an application for a project that automatically enrolls customers and then allows them to "opt-out" from participating in the project (Docket No. QX20090594)

Customers eligible to be enrolled on an opt-out basis by the municipality would be residential customers and affordable housing providers that are LMI customers as defined by the Pilot Program rules

These projects would be required to provide guaranteed savings to subscribers, so as to ensure that participants are not financially harmed by their automatic enrollment, the draft states. Enrollment in the automatic enrollment project may include a requirement for subscribers to pay a monthly community solar subscription fee. However, for the life of the automatic enrollment project, the monthly subscription fee may never exceed the value of the community solar bill credit in each and every month provided on the subscriber's utility bill pursuant to N.J.A.C. 14:8-9.7.

Under the proposal a customer could opt-out at any time.

Under the proposal, the automatic enrollment project shall be owned and operated by the local government for the duration of the project life, defined as no more than 20 years from the date of commercial operation of the project or the period until the project is decommissioned, whichever comes first. "Ownership and operation shall nonetheless permit a period of temporary third-party, tax credit investor ownership in order to maximize the financeability of the automatic enrollment project, subject to appropriate contractual provisions that maintain the local government entity's ultimate control of the automatic enrollment project," the proposal states

"Because affirmative consent of individuals is not possible for this method of subscriber enrollment, the Board proposes to exempt these projects from the provisions at N.J.A.C. 14:8-9.10(b)(1) mandating subscriber enrollment via affirmative consent," the proposal states

Projects not meeting the provisions listed above would not qualify for opt-out enrollment.

Separately, the BPU directed the EDCs to work with Staff to develop options to implement consolidated billing for community solar, and include considerations of what is currently done by other state affiliates. The EDCs shall present actionable recommendations for consolidated billing implementation in a report to the Board, no later than February 26, 2021. (Docket No. QO18060646)

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