While New Jersey surpassed California as the United State's number one solar market only seven months ago, the weakening of the renewable energy credit market has caused prices to drop by more than 80 percent.
The bill signed into law by the governor enjoyed bipartisan support in the New Jersey legislature. It will move up the start of a mandatory renewable energy production quota by four years and would lower the price ceiling for credits that electricity producers must use to comply with the quota.
With the new law, utilities serving Garden State customers will be required to get 2.05 percent of their power from solar projects starting in 2014, and 4.1 percent by 2028.
The law also establishes a ceiling price on renewable energy credits, a move intended to stabilize prices across the solar market.
It also changes the renewable energy quota from a fixed megawatt requirement to a variable percentage each year, and also allows developers to bank, or hold onto RECs, for five years instead of three.
According to the Solar Energy Industries Association, these moves will rectify the current oversupply of solar renewable energy credits in the state.
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