Permits dual-use solar energy projects to participate in community solar program.*

A2524 2R

[Second Reprint]

ASSEMBLY, No. 2524

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman WILLIAM W. SPEARMAN

District 5 (Camden and Gloucester)

Assemblyman� CLINTON CALABRESE

District 36 (Bergen and Passaic)

Assemblywoman� HEATHER SIMMONS

District 3 (Cumberland, Gloucester and Salem)

Co-Sponsored by:

Assemblywoman Katz, Assemblymen Karabinchak, Kearney,
Assemblywomen Brennan and Bagolie

SYNOPSIS

���� Permits dual-use solar energy projects to participate
in community solar program.

CURRENT VERSION OF TEXT

���� As reported by the Assembly Budget Committee on June
28, 2026, with amendments.

��

An Act
concerning
the community solar energy program
2
and
dual-use solar energy projects,
2

and amending P.L.2018, c.17
2
and P.L.2021, c.170
2
.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

����� 1.�� Section
5 of P.L.2018, c.17 (C.48:3-87.11) is amended to read as follows:

����� 5.�� a.�
No later than 210 days after the date of enactment of P.L.2018, c.17
(C.48:3-87.8 et al.), the Board of Public Utilities shall adopt, pursuant to
the �Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), rules
and regulations establishing a �Community Solar Energy Pilot Program� to permit
customers of an electric public utility to participate in a solar energy
project that is remotely located from their properties but is within their
electric public utility service territory to allow for a credit to the
customer's utility bill equal to the electricity generated that is attributed
to the customer's participation in the solar energy project.

����� b.�� The
rules and regulations developed by the board shall establish:

����� (1)� a
capacity limit for individual solar energy projects to a maximum of five
megawatts per project;

����� (2)� an
annual capacity limit for all solar energy projects under the pilot program;

����� (3)� geographic
limitations for solar energy projects and participating customers;

����� (4)� a
minimum number of participating customers for each solar energy project;

����� (5)� the
value of the credit on each participating customer's bill;

����� (6)� standards
to limit the land use impact of a solar energy project as required in
subsection r. of section 38 of P.L.1999, c.23 (C.48:3-87);

����� (7)� the
provision of access to solar energy projects for low and moderate income
customers;

����� (8)� standards
to ensure the ability of residential and commercial customers to participate in
solar energy projects, including residential customers in multifamily housing;

����� (9)� standards
for connection to the distribution system of an electric public utility; and

����� (10)
provisions to minimize impacts to the distribution system of an electric public
utility.

����� c.�� The
board shall make available on its Internet website information on solar energy
projects whose owners are seeking participants.

����� d.�� The
board shall establish standards and an application process for owners of solar
energy projects who wish to be included in the Community Solar Energy Pilot
Program. The standards for the Community Solar Energy Pilot Program shall
include, but need not be limited to, a verification process to ensure that the
solar energy projects are producing an amount of energy that is greater than or
equal to the amount of energy that is being credited to its participating
customer's electric utility bills pursuant to subsection b. of this section,
and consumer protection measures.� Projects approved by the board shall have at
least two participating customers.

����� The
board may restrict qualified solar energy projects to those located on
brownfields, landfills, areas designated in need of redevelopment, in
underserved communities, or on commercial rooftops.

����� e.�� Subject
to review by the board, an electric public utility shall be entitled to full
and timely cost recovery for all costs incurred in implementation and
compliance with this section.

����� f.��� No
later than 36 months after adoption of the rules and regulations required
pursuant to subsection b. of this section, the board shall adopt rules and
regulations, pursuant to the �Administrative Procedure Act,� P.L.1968, c.410
(C.52:14B-1 et seq.), to convert the Community Solar Energy Pilot Program to a
permanent program.� The board shall adopt rules and regulations for the
permanent program that set forth standards for projects owned by special
purpose entities and nonprofit entities.� The rules and regulations shall also:

����� (1)� limit
the capacity of each solar energy project to a maximum of five megawatts;

����� (2)
(a) establish a goal for the conditional registration of 225 megawatts of solar
energy projects prior to June 1, 2024, with an additional 275 megawatts prior
to June 1, 2024 if qualified applications exceed 225 megawatts, and an
additional 250 megawatts prior to June 1, 2025 if qualified applications exceed
500 megawatts; and

����� (b)� stipulate
that the board shall open registration, by October 1, 2025, for 3,000 megawatts
of solar energy projects in addition to the conditional registration goals
already established pursuant to this paragraph.� The board shall accept and
approve registrations pursuant to this subparagraph until the earlier of
December 31, 2029 or such time as the 3,000 megawatts of solar energy projects
are completely registered.� The board shall set SREC-II levels and guaranteed
bill credit discount levels as appropriate to enable the complete registration
of 3,000 megawatts of solar energy projects by December 31, 2029;

����� (3)� set
geographic limitations for solar energy projects and participating customers;

����� (4)� provide
for a minimum number of participating customers for each solar energy project;

����� (5)� require
the provision of access to solar energy projects for low and moderate income
customers;

����� (6)� establish
standards to ensure the ability of residential and commercial customers to
participate in solar energy projects, including residential customers in
multifamily housing;

����� (7)� establish
a method for determining the value of the credit on each participating
customer's bill;

����� (8)� establish
timeframes for the credit available to the customer;

����� (9)� establish
standards and methods to verify solar electric energy generation on a monthly
basis for a solar energy project;

����� (10)�
establish standards consistent with the land use provisions for solar energy
projects as provided in subsections r., s., and t. of section 38 of P.L.1999,
c.23 (C.48:3-87);

����� (11)�
establish standards, fees, and uniform procedures for solar energy projects to
be connected to the distribution system of an electric public utility;

����� (12)�
minimize impacts to the distribution system of an electric public utility;

����� (13)�
require monthly reporting requirements for the operators of solar energy
projects to the electric public utility, project customers, and the board;

����� (14)�
require reporting by the electric public utility to the operator of a solar
energy project on the value of credits to the participating customer's bills;

����� (15)�
require transferability, portability, and buy-out provisions for customers who
participate in community solar energy projects;

����� (16)�
establish requirements and standards that provide for the auditing and
enforcement of a solar energy project's compliance with the provisions of this
section and the rules and regulations adopted pursuant thereto, including the
project's compliance with commitments related to providing access to solar
energy projects to low- and moderate-income customers and bill crediting;
2
[
and
]
2

����� (17)�
allow, in a form and manner to be determined by the board, low- and
moderate-income residential customers to self-attest to the customer's income
as an acceptable income verification method for participation in a solar energy
project
2
; and

�����
(18)
notwithstanding subsection d. of this section and paragraph (10) of this
subsection, after the effective date of P.L.��� , c.���� (C.������� ) (pending
before the Legislature as this bill) allow the participation of dual-use solar
energy projects with a maximum capacity of five megawatts that are approved by
the board as part of the dual-use solar energy pilot program or the successor
dual-use solar energy permanent program established by the board pursuant to
section 1 of P.L.2021, c.170 (C.48:3-87.13), provided that the board may
specify certain categories or types of dual-use solar energy projects that are
not eligible for participation in the community solar energy program
2
.

����� g.��
2
(1) Only dual-use solar energy projects that apply
after the effective date of P.L.��� , c.���� (C.������� ) (pending before the
Legislature as this bill) for participation in the dual-use solar energy pilot
program or a successor dual-use solar energy permanent program established by
the board pursuant to section 1 of P.L.2021, c.170 (C.48:3-87.13) and are
approved to participate in either program shall be eligible to participate in
the permanent community solar energy program.

�����
(2)
A dual-use solar energy project participating in the community solar energy
program shall be required to comply with all requirements of both the
applicable dual-use solar energy program and the community solar energy program
that are in effect at the time of the dual-use solar energy project�s
registration in the respective programs.

�����
h.�
The board may, in its discretion, establish different incentive levels within
the community solar energy program for different categories of solar energy
projects based on project characteristics including, but not limited to, the
project size and the pre-existing land use and land cover of the property on
which the solar energy project is sited.

�����
i.
2
As used in this section:

�����
�Dual-use

1
[
or
agrivoltaics solar facilities�
]

solar
energy project�
1

means

1
[
energy
generation facilities that produce electric power from solar photovoltaic
panels located on unpreserved farmland in agricultural or horticultural
production that ensures the continued simultaneous use of the land below and
adjacent to the panels for agricultural or horticultural production
]

the same as that term is defined in section 1 of
P.L.2021, c.170 (C.48:3-87.13)
1
.

����� �Solar
energy project� means a system containing one or more solar panels and
associated equipment.

����� �Solar
panel� means an elevated panel or plate, or a canopy or array thereof, that
captures and converts solar radiation to produce electric power, and is
approved by the board to be included in the Community Solar Energy Pilot
Program.

����� �Solar
power� includes flat plate, focusing solar collectors, or photovoltaic solar
cells and excludes the base or foundation of the panel, plate, canopy, or
array.

�����
2
[
h.����������� Notwithstanding the provisions of this
section or any other law, rule, regulation, or order to the contrary,

1
a
1

dual-use

1
[
or agrivoltaics solar facilities
]

solar energy project
1

shall be eligible for participation in the
community solar energy program and shall be admitted, upon registration, into
the community solar market segment of the small solar facilities incentive
program established pursuant to section 3 of P.L.2021, c.169 (C.48:3-116).
]
2

(cf:
P.L.2025, c.135,
1
[
s.5
]

s.1
1
)

�����
2
2.� Section 1 of P.L.2021, c.170 (C.48:3-87.13) is
amended to read as follows:

����� 1.
a. No later than 180 days after the date of enactment of P.L.2021, c.170
(C.48:3-87.13 et al.), the Board of Public Utilities, in consultation with the
Secretary of Agriculture, shall adopt, pursuant to the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and
regulations establishing a "Dual-Use Solar Energy Pilot Program" to
permit the construction, installation, and operation of dual-use solar energy
projects that are connected to the distribution or transmission system owned or
operated by a New Jersey public utility or local government unit and located on
unpreserved farmland, while maintaining the affected land in active
agricultural or horticultural use.

����� b.�� The
rules and regulations developed by the board, in consultation with the
Secretary of Agriculture, for the Dual-Use Solar Energy Pilot Program shall
establish:

����� (1)� a
10 megawatt, as measured in direct current, capacity limit for each individual
dual-use solar energy project;

����� (2)�
[
annual
]

pilot program application period
capacity
targets, such that the total capacity of all dual-use solar energy projects
approved under the pilot program shall not exceed 200 megawatts, as measured in
direct current, for all dual-use solar energy projects approved under the pilot
program, except as otherwise provided pursuant to subsection e. of this
section;

����� (3)� financial
incentives available to dual-use solar energy projects approved pursuant to the
pilot program
, which financial

incentives may be designed to stack with any incentives available in the
board�s other solar energy programs, provided that any financial incentives
designed to stack are set at a level that takes into account both the
additional costs associated with being a dual-use solar energy project and all
the revenue streams available to the dual-use solar energy project in the
board�s other solar energy programs
;

����� (4)� a
prohibition on siting a dual-use solar energy project on prime agricultural
soils and soils of Statewide importance, as identified by the United States
Department of Agriculture's Natural Resources Conservation Service, which are
located in Agricultural Development Areas certified by the State Agriculture
Development Committee, unless the project is in association with a research
study undertaken in coordination with a New Jersey public research institution
of higher education, as approved by the board in consultation with the
Secretary of Agriculture;

����� (5)� a
prohibition on siting a dual-use solar energy project on any of the following
unless the board, in consultation with the Department of Environmental
Protection and the Secretary of Agriculture, grants a waiver based on unique
factors that make the project consistent with the character of the specific
parcel:

����� (a)� land
located within the preservation area of the pinelands area, as designated in
subsection b. of section 10 of P.L.1979, c.111 (C.13:18A-11);

����� (b)� land
designated as forest area in the pinelands comprehensive management plan
adopted pursuant to P.L.1979, c.111 (C.13:18A-1 et seq.);

����� (c)� land
designated as freshwater wetlands, as defined pursuant to P.L.1987, c.156
(C.13:9B-1 et seq.), or coastal wetlands, as defined pursuant to P.L.1970,
c.272 (C.13:9A-1 et seq.); or

����� (d) land
located within the Highlands preservation area as designated in subsection b.
of section 7 of P.L.2004, c.120 (C.13:20-7);

����� (6)� the
requirement that the land on which the dual-use solar energy project is
installed continues to be actively devoted to agricultural or horticultural
use;

����� (7)� the
requirement that the project comply with all applicable federal, State, or
local laws, rules, regulations, or ordinances;

����� (8)� an
application process for owners who wish to develop a dual-use solar energy
project as part of the pilot program, including such fees or deposits as shall
be determined by the board; and

����� (9)� criteria,
consistent with the provisions of paragraph (1) of subsection c. of this
section, for evaluating and scoring proposed projects to determine which
projects should be allowed to participate in the pilot program and be awarded
incentives pursuant to paragraph (3) of this subsection.

����� c.
(1) An owner proposing a dual-use solar energy project shall submit an
application to the board before constructing, installing, or operating the
project.� The board shall consult with the Secretary of Agriculture in the
review and approval of all dual-use solar energy projects under the Dual-Use
Solar Energy Pilot Program.� In reviewing and making decisions on dual-use
solar energy projects, the board and secretary shall give consideration to
criteria including, but not limited to:

����� (a)� proposals
for monitoring the quality of agricultural or horticultural use of the land;

����� (b)� the
incentive level sought by the applicant;

����� (c)� geographic
location;

����� (d) interconnection
planning;

����� (e)� proposals
for minimizing negative impacts to farmland;

����� (f)� proposals
to address decommissioning;

����� (g)� proposals
for addressing stormwater runoff and other environmental issues;

����� (h)� technical
feasibility;

����� (i)�� technical
innovation;

����� (j)�� the
quality of any research committed to during the evaluation period; and

����� (k)� any
other criteria as may be deemed advisable by the board.

����� The
review shall also consider whether the selected projects are of varying sizes,
and, collectively, involve diverse types of agricultural and horticultural
production.� The board, in consultation with the Secretary of Agriculture,
shall, within 180 days after receipt, approve, disapprove, or approve with
conditions an application submitted pursuant to this section.

����� (2)� An
owner who receives approval from the board pursuant to this section shall
obtain all necessary permits and other approvals as may be required pursuant to
federal, State, or local law, rule, regulation, or ordinance, prior to the
construction of the dual-use solar energy project.

����� d.�� The
Secretary of Agriculture may request that the board suspend or revoke an
approval issued pursuant to this section for a violation of any term or
condition of the approval or any provision of this section.

����� e.�� The
Dual-Use Solar Energy Pilot Program shall continue for 36 months after the
adoption of the rules and regulations required pursuant to subsection a. of
this section, except that the board may extend the pilot program by no more
than two additional 12-month periods if the board, in consultation with the
Secretary of Agriculture, determines that such extensions are necessary to
adequately evaluate the performance of the projects selected for construction
as part of the Dual-Use Solar Energy Pilot Program.� If the board extends the
Dual-Use Solar Energy Pilot Program, it may increase the total capacity limit
of all projects under the program by no more than 50 megawatts, as measured in
direct current, per additional 12-month period.

����� f.��� Notwithstanding
any law, ordinance, rule, or regulation to the contrary, a dual-use solar
energy project approved pursuant to this section shall be a permitted use
within every municipality.

����� g.�� No
later than 36 months, or no later than 48 or 60 months if applicable due to
extensions of the Dual-Use Solar Energy Pilot Program pursuant to subsection e.
of this section, after adoption of the rules and regulations required pursuant
to subsection a. of this section, the board, in consultation with the Secretary
of Agriculture, shall adopt rules and regulations, pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),
to convert the Dual-Use Solar Energy Pilot Program to a permanent program as
part of the permanent successor to the solar incentive program established
pursuant to P.L.2021, c.169 (C.48:3-114 et al.).� The rules and regulations for
the permanent program shall set forth standards for dual-use solar energy projects
that take into account the results of the pilot program and any research
studies on the efficacy of dual-use solar energy in New Jersey, and shall
include, but not be limited to:

����� (1)� a
capacity limit for individual dual-use solar energy projects;

����� (2)�
[
a
]
total
[
annual
]
capacity
[
limit
]

limits to be set on an annual or other periodic
basis
;

����� (3)� provisions
to protect New Jersey's prime agricultural soils and soils of Statewide
importance, as identified by the United States Department of Agriculture's
Natural Resources Conservation Service, which are located in Agricultural
Development Areas certified by the State Agriculture Development Committee, and
provisions to protect the State's agricultural and horticultural diversity;

����� (4)� standards
for:� installation and decommissioning techniques that minimize negative
impacts to farmland, which may include the posting of a performance bond for
decommissioning; impervious coverage; and water management, including, but not
limited to, water recapture and filtration;

����� (5)� provisions
to ensure the continued active agricultural or horticultural use of land on
which dual-use solar energy projects are installed;

����� (6)� siting
criteria and restrictions, which may differ from those established pursuant to
section 6 of P.L.2021, c.169 (C.48:3-119) to the extent necessary to accomplish
the purposes of the dual-use solar energy program;
[
and
]

����� (7)� an
application process, including such fees, escrows, or deposits as shall be
determined by the board
; and

�����
(8)
an incentive structure designed to support the development of dual-use solar
energy projects in New Jersey, taking into account the benefits and costs to
ratepayers and the State�s electric transmission and distribution system, and
the costs and revenue streams associated with different project types
.

����� h.�� As
used in this section:

����� "Dual-use
solar energy project" means the energy generation facilities, structures,
and equipment for the production of electric power from solar photovoltaic
panels located on unpreserved farmland in agricultural or horticultural
production that ensures the continued simultaneous use of the land below and
adjacent to the panels for agricultural or horticultural production.

����� "Owner"
means the owner of the unpreserved farmland, the owner of the dual-use solar
energy project, or a representative duly authorized to act on the owner's
behalf.

����� "Preserved
farmland" means the same as the term is defined in section 4 of P.L.2009,
c.213 (C.54:4-23.3c).

����� "Unpreserved
farmland" means any land that is valued, assessed, and taxed pursuant to
the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et
seq.), and is not preserved farmland.
2

(cf:
P.L.2021, c.170, s.1)

����
2
[
2.
]
�
3.
2
��� This
act shall take effect immediately.