Community Solar Energy Program (CSEP)
The Community Solar Energy Program (CSEP) provides incentives to eligible community solar facilities to enable the continued efficient and orderly development of solar electric generating sources throughout New Jersey.
Status
Active program
Schedule
The CSEP online registration portal opened to new registrations on March 6, 2026.
Program Contacts
Relevant Audiences
On this Page
Program Update
Per Board Orderdated September 9, 2026, In the Matter of the Community Solar Program, The Board allowed for a blanket extension of 33 months from the date of conditional acceptance for all existing community solar and remote net metering registrations submitted prior to the effective date of the Board Order September 9, 2026. The administrative 6-month extension is automatically granted as part of this extension.
Furthermore, pursuant to the 2026 CSEP Act the Board waived the SuSI Program rules at N.J.A.C. 14:8-11.5(l) to allow a registrant in the CSEP or RNM market segment that did not reach commercial operation by its deadline to submit a new registration to the ADI Program regardless of whether capacity remains in the relevant megawatt capacity block.
The Board Order also established a new market segment for Large Community Solar Facilities sized over 5 MW (dc) to 20 MW (dc) located on commercial or industrial rooftops, landfills, contaminated sites, and mining sites. Eligible projects may register in the CSEP until December 31, 2028. Projects registering in this capacity block shall also be registered in the capacity block for their EDC or landfill projects as applicable. The SREC-II incentive value for this new market segment will be $30.00. Projects that registered or received awards under another New Jersey solar program prior to September 9, 2026, are not eligible to register in this capacity block under the CSEP unless the Board finds that there is a unique, project-specific reason to allow the project to transfer programs.
Developers that are looking to register under this new market segment must demonstrate to Staff, prior to submitting a registration package, that they are unable to interconnect as a PJM wholesale market participant in Transition Cycle 2 or earlier or as a Qualifying Facility pursuant to applicable orders from FERC and the Public Utilities Regulatory Policies Act of 1978. Such demonstration must include documentation from the EDC that shows the EDC is unable to interconnect the project as a Qualifying Facility and evidence that reasonable modifications to the configuration, size, or point of interconnection that would enable interconnection as a Qualifying Facility are not feasible.
Per Board Order dated March 4, 2026, In the Matter of the Community Solar Energy Program, Order Setting Community Solar Energy Program Megawatt Blocks for Energy Year 2026, the Board expanded the capacity under the Community Solar Energy Program to include an additional 3,000 MW (dc) for Energy Year 2026. Capacity blocks shall roll over to successive energy years until the MW block for that market segment is fully subscribed or until December 31, 2029, whichever comes first. The CSEP online registration portal will open to new registration on the effective date of the Board Order, March 6, 2026.
All community solar projects submitted on or after the effective date of the above referenced Board Order must provide subscribers with a guaranteed bill credit discount of no less than 20 percent, with LMI subscribers receiving a guaranteed bill credit discount of no less than 25 percent. All discounts would apply for the duration of customers’ subscriptions. The guaranteed credit discount would continue to be calculated as a percentage of the bill credits received by the customer based on their subscription size.
This capacity was allocated amongst the four EDC territories.
- 324 MW ACE
- 778 MW JCP&L
- 1,555 MW PSE&G
- 45 MW RECO
- NEW Additional 300 MW as a carve out for solar facilities installed on landfills
About the Program
The Community Solar Energy Program (CSEP) provides incentives to eligible community solar facilities to enable the continued efficient and orderly development of solar electric generating sources throughout New Jersey. The capacity allocation of the CSEP is determined by New Jersey Board of Public Utilities (NJBPU) Board Order.
The Community Solar Energy Program (CSEP) registration portal will open to new registrations onFriday, March 6, 2026, at 12:01 am (EST). Community Solar registrations will be accepted on a first come first serve basis the capacity block for each market segment shall roll over to successive energy years until the MW block for that segment is fully subscribed or until December 31, 2029, whichever comes first. A MW block shall be deemed fully subscribed when the last registration received in the registration portal causes the total capacity of all registrations in that specific EDC block to exceed the capacity allocation for the block.
Current Program Status
Energy Year 2027 CSEP Capacity Block (Effective June 1, 2026 - May 31, 2027):
| EDC Territory | Capacity Blocks MW (dc) | Capacity Subscribed MW (dc) | Available Capacity MW (dc) |
|---|---|---|---|
| JCP&L | 778 | 73 | 778 |
| PSE&G | 1,555 | 212 | 1,343 |
| ACE | 324 | 60 | 264 |
| RECO | 45 | 5.5 | 45 |
| NEW: Landfills | 300 | 0 | 300 |
| *Large Community Solar Facilities defined as over 5 MW (dc) to 20 MW (dc) | 300 | 0 | 300 |
* Large Community Solar Facilities defined as:
- Community solar facilities located on commercial or industrial rooftops, landfills, contaminated sites, and mining sites are eligible for the New Large Community Solar Market Segment
- Market Segment will remain open until December 31, 2028
Clarification on Capacity Allocation:
The 300 MW capacity allocation overlaps with the existing 3,000 MW allocation. Large solar facilities that qualify under either the 300 MW Community Solar Landfill capacity block or the applicable EDC capacity block allocation within the 3,000 MW CSEP allocation will be counted against both applicable categories.
For example, a 10 MW (dc) large community solar landfill project will be counted against both the Community Solar Landfill capacity block (300 MW) and the Large Community Solar capacity block (300 MW) leaving 290 MW (dc) remaining in each. Similarly, a 10 MW (dc) large community solar rooftop project in a specific service territory will reduce the Large Community Solar market segment from 300 MW to 290 MW and the same 10 MW will also be deducted from the relevant EDC capacity block allocation.
Capacity blocks for projects that previously participated in the TI Program:
The solar capacity for any new CSEP registration for solar facilities that previously participated in the TI Program that were unable to complete by the established deadline can participate in the CSEP. The capacity for these solar facilities will not be counted toward the 275 MW (dc) set out in the above table. Community Solar projects that participated in the TI Program must commit to the guaranteed bill credit discount consistent with that indicated in their original Community Solar Pilot Program application to be exempt from the above capacity limits.
The table below reflects capacity for new registrations in CSEP that previously participated in the TI Program:
| Capacity Subscribed MW (dc) |
|---|
| 37.995 MW |
Eligibility Requirements
Solar facilities may be sited on the following site types: (1) Rooftops (2) Carport and Canopies (3) Floating Solar (4) Contaminated Sites and Landfills defined at N.J.S.A. 58:10B-1 and N.J.A.C 14:8-1.2 and (5) Mining Sites, defined as a sand mine, gravel pit, or mine on land classified as “Extractive mining” in Level II of the modified Anderson classification system within the most recent Land Use/Land Cover GIS data layer produced by the NJDEP, exclusive of forested land.
Any CSEP Registration with a solar facility sized over 5 MW (dc) will automatically be rejected.
Solar developers participating in the CSEP are required to post escrow with the Board in an amount of $40.00 per kilowatt of DC nameplate capacity of the solar facility.
Solar project owners or their developers must follow the interconnection process required by New Jersey law at N.J.A.C. 14:8-1 through 14:8-5.9 and facilitated by their Electric Distribution Company (EDC).
The solar equipment must be new. N.J.A.C. 14:8-11.4 (c) The equipment used in an CSEP-eligible facility must be new; that is, none of the equipment may have been used prior to the installation. (Racking, meter, inverter, modules).
Solar facilities must be connected to a distribution or transmission system owned or operated by a New Jersey public utility.
Solar facilities receiving incentives that are 1 MW (dc) or greater in size are subject to the Prevailing Wage Act N.J.S.A. 34:11-56.25, et seq.
All community solar projects must reach permission to operate on or before the expiration date noted in the CSEP acceptance letter.
Solar facilities on contaminated site or landfills are subject to New Jersey Solar Erosion and Sediment Control Act N.J.S.A. 4:24-39 et seq, its implementing rules at N.J.A.C. 2:90 and NJDEP’s Stormwater Management rules under N.J.A.C. 7.8.
CSEP does not permit dual-use solar facilities on farmland.
Community Solar Facilities are prohibited in the CSEP from "Commencing Construction," (defined as obtaining permission to operate or PTO) prior to receipt of acceptance into the CSEP program. Solar facilities that obtain PTO prior to the issuance of the CSEP acceptance letter will be required to petition the Board of eligibility in the CSEP program.
Incentive Amounts
Community solar facilities up to 5 MW registered in the CSEP program are eligible to generate SREC-IIs at the incentive levels below:
$90
CSEP Registrations submitted in the CSEP online portal on or before April 29, 2025
$80
CSEP Registrations submitted in the CSEP online portal on or after April 30, 2025
$60
CSEP Registrations submitted in the CSEP online portal on or after March 6, 2026
$30
CSEP Large Community Solar Facilities, registrations submitted on or after September 9, 2026.
SREC-IIs have a 15 year qualification life
Community Solar Facilities are not eligible for a public adder
Program Documents
Initial Registration Requirements
CSEP Initial Registration ChecklistCSEP Community Engagement and Acquisition Plan FormCSEP Registration Certification Form (PDF)CSEP Milestone Reporting Form (Quarterly Report)*Community Solar Permit FormNJ Department of Environmental Protection Permit Readiness ChecklistContaminated Site and Landfill Eligibility Verification Form (if applicable)*A CSEP Milestone Reporting Form is required to be submitted with the initial CSEP registration package and quarterly thereafter, up until the submission of the Final As-Built (Post Construction Certification) Package.
Identifying Deficiencies in your CSEP Registration Package
As the CSEP Registration is reviewed, it will either be accepted or deemed incomplete. This document explains how the CSEPI Program Team identifies minor and major deficiencies within your CSEP Registration packet.
An initial registration period will run from April 30, 2025, to May 13, 2025 at 11:59 PM EST, during which all registrations may be submitted and will be considered tied with respect to time of submission. In the event that a capacity block has received registrations to be fully subscribed during this period, as a tiebreaker, projects will be reviewed in the order of the guaranteed bill credit discount, starting with the highest discount.
NOTE:Please be advised, if your CSEP Registration package is rejected and the EDC capacity block has been fully subscribed, you will no longer be eligible to submit a new CSEP registration in this capacity block. The CSEP online portal will be closed for new registrations under that EDC block, and you will be required to wait until the next capacity block is opened to submit a new registration.
CSEP Final As-Built (Post Construction Certification) Package
CSEP Final As-Built ChecklistCSEP Final As-Built Technical WorksheetPost-Construction NJDEP Compliance FormExtension Policy
Per Board Orderdated September 9, 2026, In the Matter of the Community Solar Program, The Board allowed for a blanket extension of 33 months from the date of conditional acceptance for all existing community solar and remote net metering registrations submitted prior to the effective date of the Board Order September 9, 2026. The previous administrative 6-month extension is automatically granted as part of this extension.
CSEP Extension Request ChecklistExtension Requests will be reviewed and considered on a case-by-case basis and should include supporting documentation of extenuating circumstances for the delay in completing the facility, evidence that the facility has made progress towards completion, and demonstrations of the likelihood of timely and successful completion of the solar facility. When deciding on the extension request, CSEP team will consider whether the registrant has submitted timely quarterly milestone reporting forms. If the extension is granted, the CSEP will provide a new registration expiration date six months from the expiration on the original conditional CSEP Acceptance Letter.
SeeSolar Proceedingsfor previous Board Orders regarding extension requests.
Escrow Requirements
The Board requires that the registrant post escrow with the Board in an amount of $40.00 per kilowatt of DC nameplate capacity of the solar facility. Public entities and community-based organizations, which must be entities registered under section 501(c)(3) of the Internal Revenue Code, would be exempt from this requirement subject to Board Staff approval. The escrow amount will be reimbursed to the registrant in full upon receipt of permission to operate (“PTO”) and submission of a CSEP Post-Construction Certification (Final As-Built package, pursuant to N.J.A.C. 14:8-11.5(j). Projects seeking an exemption should email, Community.Solar@bpu.nj.gov, with justification for an exemption with evidence of public entity or non-profit status. The escrow amount shall be forfeited to the State if the facility does not commence commercial operation before the conditional registration expires. The Program Administrator sent instructions for how to make the required escrow deposit to conditionally accepted projects on June 30, 2026. Per Board Orderdated September 9, 2026, escrow payments are due on March 9, 2027 for currently-registered projects; thereafter new registrations will have escrow due within 10 business days of receipt of conditional registration.
Automatic Enrollment
Local governments are now permitted to create and manage municipal community solar automatic enrollment projects. Interested municipalities may enroll subscribers who reside within the municipality for the projects without affirmative consent of the customer, provided that certain requirements are met. Regulations regarding municipal community solar automatic enrollment projects may be found at N.J.A.C. 14:8-9.6(l).
To register a new or existing community solar project as a municipal automatic enrollment project, a local government must pass an ordinance or resolution authorizing the specific project application or stating its intention to convert or manage the specific project as a municipal community solar automatic enrollment project. The ordinance or resolution must also identify the mechanism by which it intends to select new customers to be enrolled. The resolution or ordinance should be uploaded with the project’s registration in the CSEP registration portal and also emailed to the Board for approval at board.secretary@bpu.nj.gov and Community.Solar@bpu.nj.gov .
Automatic enrollment projects shall be owned and operated by the local government or served by the local government as its subscriber organization for the duration of the project life. At least 80 percent of capacity shall be subscribed by or reserved for LMI subscribers.
The local government must mail written notice to all to all selected subscribers of their enrollment in the community solar project no less than 90 days before the subscribers receive their first bill credits, followed by a second notice no later than 30 days before the subscribers receive their first bill credits. A draft of the notice and envelope, as well as any subsequent revisions, shall be submitted to Board staff at Community.Solar@bpu.nj.gov and the New Jersey Division of Rate Counsel for comments, revisions, and approval at least 60 days prior to their intended use. Required elements of the notice are listed in the program rules.
Residents selected to be automatically enrolled in an approved community solar project shall be guaranteed bill credit discounts delivered by consolidated billing and shall have the opportunity at any time to opt out of the enrollment and to enroll in competing subscription opportunities.
Questions regarding automatic enrollment may be sent to Community.Solar@bpu.nj.gov.
Utility Information
Related Resources
All community solar subscriber organizations wishing to operate in New Jersey are required to register with the New Jersey Board of Public Utilities. View the list of currently registered community solar subscriber organizations here.
Solar ProceedingsThis page contains links to proceedings for all solar programs administered by New Jersey's Clean Energy Program.
Solar Activity ReportsNew Jersey's Clean Energy Program solar activity reports provide detailed information for all solar projects that are installed and currently under development in New Jersey. Solar activity reports and data are posted on the fourth Wednesday of every month at 2:00pm EST for the previous reporting month.
SuSI Registration and Payment for SREC-IIsThis page details the four-step process registrants must follow in order to enlist a solar generation facility with the SuSI program, PJM-GATS, and the SREC-II payment administrator.