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
April 30 - May 13, 2025: Initial Registration Period
Program currently open to registrations in RECO and JCP&L utility territories only.
Program Contacts
Relevant Audiences
On this page
Program Update
Board Staff is working toward recommendations on the implementation of L. 2025, c. 135, which directs the Board to open for registration 3,000 MW of community solar projects. Board action is pending and is anticipated soon.
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 determinedby New Jersey Board of Public Utilities (NJBPU) Board Order.
Per Board Order April 23, 2025 the Board allocated capacity under the Community Solar Energy Program to include an additional 250 MW (dc) on top of the 225 MW allocated in 2024. This capacity will be allocated amongst the four Electric Distribution Companies (EDCs):
- 72 MW for JCP&L
- 144 MW for PSE&G
- 30 MW for ACE
- 4 MW for RECO
Current Program Status
The CSEP registration manager received more than 650 MW of project registrations during the initial registration period for energy year 2025. After the initial registration period, the PSE&G and ACE capacity blocks were oversubscribed. A tie breaker process was used, and projects were reviewed in order beginning with the highest offered bill credit discount until the allocated capacity was exceeded. As multiple projects in ACE would have met the capacity target with the same bill credit discount, these were reviewed in order of the date and time of submission. The threshold for acceptance was 41.07% in the PSE&G block and 35.07% in the ACE block. The CSEP online portal is closed to new registrations in the PSE&G and ACE territories.
The RECO and JCP&L capacity blocks have available capacity, and new registrations can now be submitted in the CSEP online portal under these two utility territories.
Energy Year 2026 CSEP Capacity Block (Effective June 1, 2025 - May 31, 2026):
| EDC Territory | Capacity Blocks MW (dc) | Capacity Subscribed MW (dc) | Available Capacity MW (dc) |
|---|---|---|---|
| JCP&L | 73 | 71.1 | 1.9 |
| PSE&G | 147 | 149 | Closed |
| ACE | 30 | 32 | Closed |
| RECO | 7.8 | 5.5 | 2.3 |
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. (link to resource card)
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). (link to resource card on interconnection)
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
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 FormCSEP 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
CSEP solar facilities accepted in the CSEP may be eligible for one 6-month extension. The registrant may apply for an extension for any solar installation that cannot complete the installation and submit a complete Final As-Built (Post Construction Certification) package with permission to operate from the Electric Distribution Company in the CSEP online registration portal on or before the expiration date noted in the CSEP Acceptance Letter.
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.
Any CSEP solar facility that would like to submit a request for a second extension must submit a petition to the NJBPU, for consideration. Instructions on how to file a petition can be found at How to File a Petition.
Per Board Order dated August 13, 2025, projects that have been conditionally approved as of August 20, 2025 (effective date of the Board Order) will receive an additional 9-months from the date of their original expiration date noted in their conditional acceptance letter. CSEP solar facilities that were granted a 6-month extension in CSEP will be given an additional 9-months from their new expiration date noted in their extension letter.
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, communitysolar@njcleanenergy.com, 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. For solar facilities awarded a conditional registration in Energy Year 2024, evidence of escrow is due one year after a project receives a notice of conditional registration. The Board is in the process of obtaining an escrow agent and will notify conditionally accepted projects how to post escrow in the coming months.
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 communitysolar@njcleanenergy.com .
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 communitysolar@njcleanenergy.com 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 communitysolar@njcleanenergy.com .
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.