The New Jersey Board of Public Utilities recently approved a plan for Newark, N.J.-based Public Service Electric & Gas (PSE&G) to provide approximately $105 million toward the financing of solar installations in New Jersey over the next two years through its Solar Loan program. The loans could pay for 40% to 60% of the cost of the installation of solar systems, with the rest being paid off by the electricity the panels produce. PSE&G wants to generate 30MW of power through the pilot program.
PSE&G would provide loans to developers or customers to cover approximately 40% to 60% of the cost of a solar installation project, depending on the projected output of the solar energy system and the cost of the system. The borrower would repay the principal, plus interest, over 10 years for residential customers and over 15 years for all other borrowers.
In addition, owners of solar energy systems can repay loans with Solar Renewable Energy Certificates (SRECs), which are created every time the system generates solar electricity. It is issued once a solar facility has generated 1000kWh (1MWh), through either estimated or actual metered production. Owners may also be eligible for a federal investment tax credit. For more information on PSE&G’s Solar Loan program, visit the company’s Web site: www.pseg.com/solarloan.