New Jersey, United States [RenewableEnergyWorld.com] New Jersey’s Public Service Electric and Gas Company (PSE&G) announced that it will begin offering its solar loan program to residential customers. The company officially launched the residential program after making a compliance filing with the New Jersey Board of Public Utilities. The program, one the first of its kind in the country, will help homeowners install solar energy systems on their homes by giving them up 60 percent of the cost for the system.
The residential component of the program follows the successful implementation in April of a solar investment program for non-residential customers. A total of US $105 million in loans is available to PSE&G’s electric customers. After obtaining agreement from a collaborative stakeholder group on loan documents for the residential customers, PSE&G said that is now ready to begin accepting residential applications.
Under the new program, residential electric customers in single family homes may qualify for these loans to borrow 40 to 60 percent of the total cost of a solar installation project, depending upon the efficiency of the solar system. PSE&G would provide the loans directly to customers. The remainder of the project cost is funded by the customer, who may also take advantage of other financial incentives that may be available such as the federal tax credit.
Financing to support the development of up to 6 megawatts of solar power in the residential program is available on a first come, first served basis during the next two years. The loans would be paid off using solar credits that are created from the solar energy the systems produce. The credits, known as Solar Renewable Energy Credits (SRECs), are valued at a minimum price of US $475 or at market value, whichever is higher, for purposes of loan repayment.
“These loans will permit our residential customers to have easier, more affordable access to financing the installation of solar energy systems,” said Ralph LaRossa, president and COO of PSE&G. “This residential loan program will further spur investment in solar power in New Jersey and help meet the state’s goal of having 20 percent of the state’s energy needs generated from renewable sources by 2020.”