PSE&G has committed to provide approximately $105 million toward the financing of solar photovoltaic system installations over the next two years. This is all part of PSE&G’s continuing efforts to encourage the development and installation of clean, renewable energy technologies. The Solar Loan Program is expected to spur additional investment in the State’s solar industry. 

PSE&G will implement a Solar Loan Program across all customer classes within its electric service territory, with segments for residential, multi-family/affordable housing, municipal/not-for-profit, and commercial/industrial (C&I) customers. A major goal of the program is to reduce the overall cost of project development, installation, financing and maintenance, while providing the best solar energy value for all stakeholders. The borrower will repay the loans with Solar Renewable Energy Certificates (SRECs) or cash. For the purpose of this program, the SRECs will have an established floor value of $475 during the loan repayment period. The value will not drop below $475, but could be higher if the SREC market price goes above the floor price.  The borrower will repay the loan over a 15-year period. For consumer loans the repayment period will be 10 years.  If the loan is paid off early, PSE&G will have the option to purchase SRECs through a call option, at a price of 75% of the market price.  PSE&G will retain the call option through the end of the original loan term (15 years for non-residential loans, 10 years for residential loans to consumers).

The Solar Loan Program is comprised of the following segments, for a total of 30 MW:

Loan applications will be accepted on a first-come, first serve basis until 30 MW of projects have been developed or 2 years have expired, whichever comes first.  The loan will provide financing for a portion of the overall project cost.

Customer Segment Details
There will be a cap of 25% on any single developer/customer of the total Program amount (i.e., 30MW). In addition, there will be a cap on any single developer/customer of 25% within any one program segment. The caps will apply to all affiliated entities (e.g., if developer “A” has an affiliate “B”, A and B together may not exceed 25% of any segment or 25% of the total 30 MW).
For the first year of the Program there will be hard caps of 9 MW (30%) for the Municipal/Not-for Profit segment, 9 MW (30%) for the Residential segment and the Multi-Family/Affordable Housing segment combined, and 12MW (40%) for the C&I segment. Based on market conditions and the status of projects accepted into each segment during the initial year, PSE&G reserves the right to convert these percentages into “soft” caps starting in the second year of the Program. The Program will have soft caps of 6MW (20%) of the total 30MW block for the Residential segment, and 3MW (10%) for the Multi-family/Affordable Housing segment.

Commercial and Industrial – 12MW (40%):
This segment is available to commercial and industrial installations that are not covered by the segments below. 

Municipal Segment/Not-For-Profit Segment – 9MW (30%):
This segment is available to municipalities, schools, other units of local government (government entities), and non-profit organizations.

Multi-Family/Affordable Housing Segment – 3MW (10%):
The Multi-family/Affordable Housing segment will target existing multi-family, new construction and single family homes.
PSE&G will originate loans for the Multi-Family/Affordable Housing segment based on income guidelines established in the NJ Housing and Mortgage Financing Agency (NJHMFA) funding programs for multi-family affordable housing projects. NJHMFA’s multi-family affordable housing income limits vary based on household size and housing type.

Residential – General Segment – 6MW (20%):
PSE&G is now accepting loan applications in the Residential sector.