As Energy Costs Rise, Community Solar Set to Deliver Relief When It’s Needed Most
TRENTON, NJ — Today, Governor Phil Murphy took a historic step toward energy affordability and equity for New Jersey’s residents by signing into law legislation (S4530 / A5768) that will unlock an additional 3,000 megawatts (MW-dc) of community solar—enough to power more than half a million households across the state.
This landmark policy follows a string of record-breaking electricity capacity prices in the PJM region, which are forecast to continually drive up electricity bills for families and small businesses. In a state where building new transmission is slow, costly, and spatially limited, New Jersey is charting a smarter course by investing in distributed, local solutions that can go to work now. The move also positions the state to maximize clean energy buildout before the federal Investment Tax Credit begins to phase out under the OBBB Act.
“Today, we are taking immediate and far-reaching steps to lower energy costs for every household in New Jersey,” said Governor Murphy in a statement from his office’s release. “By accelerating the process for bringing new sources of energy online and rapidly building new energy storage facilities, we will meet growing demand while also making life more affordable for our state’s families. As part of this process, we are going to create good-paying, union jobs and build a cleaner, more resilient future for every New Jerseyan.”
“With Governor Murphy’s signature, New Jersey just cemented itself as a national leader in energy affordability and equity. This law doesn’t just build solar, it builds economic opportunity, consumer choice, and resilience for the communities that need it most,” said Charlie Coggeshall, Mid-Atlantic Director for the Coalition for Community Solar Access (CCSA). “We owe a special thank you to Governor Murphy, Senators Gopal and McKeon, Assemblywomen Peterpaul and Donlon, Assemblyman Karabinchak, and others in the New Jersey Legislature for getting this done. It’s also important to recognize that the path to this milestone was enabled by Governor Murphy’s consistent leadership on clean energy, the vision and championing of community solar by Senator Bob Smith, and the strong administrative role played by the Board of Public Utilities.”
Community solar allows residents—including renters, small businesses, and those without rooftop access—to subscribe to a nearby solar project and receive guaranteed bill savings. It’s clean energy that doesn’t require a home investment or upfront costs. The new legislation cements New Jersey’s leadership on energy equity by continuing the state’s requirement that at least 51% of subscribers be low- to moderate-income (LMI) households—ensuring those most impacted by rising energy costs see the greatest benefit.
Key provisions of the new law include:
- Releasing 3,000 MW of new community solar capacity by October 1, 2025, to be registered by December 31, 2029;
- Maintaining an existing program requirement that guarantees bill credit discounts to subscribers; and
- Empowering the Board of Public Utilities (BPU) to set appropriate SREC-II levels to ensure full subscription and market participation.
New Jersey already has roughly 180 MW of community solar online and over 720 MW in the pipeline, saving customers a minimum of 10–20% and in some cases over 40% on their monthly bills, while delivering clean energy through locally developed projects that stimulate the state’s economy. This new law builds on that foundation, offering a pathway to rapidly scale a proven clean energy solution.
As electricity costs continue to rise, especially for LMI households who spend a disproportionate share of their income on energy, community solar offers an immediate and scalable answer. The program will be a key tool in meeting New Jersey’s clean energy goals, expanding access, and easing the energy burden on working families.
Across the nation, 19 states and the District of Columbia have already adopted policies enabling third-party community solar programs. Additionally, Microsoft, Google, Walmart, Starbucks, Rivian, Wendy’s, and T-Mobile are just a few of the Fortune 500 companies that have signed agreements with community solar developers to invest in projects across the country. Companies and states across the nation recognize that, as they look to meet rising energy needs, ambitious clean energy goals, community solar, and distributed energy resources are answering the call.
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About CCSA
CCSA is a national trade association representing over 125 community solar developers, businesses, and nonprofits. Together, we are building the electric grid of the future where every customer has the freedom to support the generation of clean, local solar energy to power their lives. Through legislative and regulatory advocacy, and the support of a diverse coalition — including advocates for competition, clean energy, ratepayers, landowners, farmers, and environmental justice — we enable policies that unlock the potential of distributed energy resources, starting with community solar. For more information, visit https://www.communitysolaraccess.org and follow the group on X (Twitter), LinkedIn, and Youtube.