Almost a year since the idea was proposed, New Jersey’s rate counsel and the Newark-based Public Service Electric and Gas Co. (PSE&G) have reached a provisional agreement that could create a $100 million solar energy pilot program in the state.
Under the agreement, PSE&G would create a subsidiary to provide loans to residential and commercial customers for the installation of solar energy systems. The loans would be paid back, in part, through the sale of solar energy credits generated by the systems.
The Record reported that the compromise agreement includes lowering interest rates for customers from 11.1% to 6.5% and the inclusion of state oversight.
The agreement is open to further negotiation, but is expected to go before the New Jersey Board of Public Utilities this month.
"This agreement establishes a promising pilot program that we hope will encourage the development of solar energy," Stefanie A. Brand, director of the Division of Rate Counsel, said. "We were successful in getting the company to agree to improve the program to provide greater consumer protections and increased ratepayer benefits."
A PSE&G spokesperson said, "If the settlement is approved by the board, we will move as quickly as possible to begin offering solar loans to developers and customers."
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