New Jersey passes revised “smart solar permitting bill”
New Jersey Governor Phil Murphy signed bill A5264, colloquially known as the “smart solar permitting bill,” into law Dec. 22, cutting industrial red tape around the state. The New Jersey Senate and Assembly had previously passed the amended bill by a unanimous vote on Dec. 18.
The new law “will expedite the approval process for residential solar and battery systems,” according to Doug O’Malley, Director of Environment New Jersey. He added that the new law’s implementation will be up to new governor Mikie Sherrill and the state’s Department of Community Affairs (DCA), once Sherrill takes office Jan. 20.
“This is a solar slam dunk that will expand clean energy, reduce air and climate pollution and remove headaches for residents and solar installers,” says O’Malley. “Thank you to Sen. McKeon and Asm. Karabinchak for their leadership and it’s critical that the Department of Community Affairs implements this legislation as quickly as possible in a Sherrill Administration.”
Lawmaker reactions
The new law’s top priority is removing permitting inefficiencies, which can add up to $4,500 to the cost of a typical rooftop solar system in New Jersey. State Senator John McKeon, a Democrat from District 27 and the New Jersey Senate’s prime sponsor of the legislation, says the law “will provide more clean energy to our electric grid and provide more savings for ratepayers,” rather than the state having to rely on outside help.
“Smart solar permitting can bring permitting into the 21st century and reduce costs and burdens on towns and cities,” says McKeon. “We should put people over paperwork so we can get more solar on our rooftops and more savings for ratepayers in our wallets. I look forward to working with the Sherrill Administration and DCA to implement this win for the environment, the electric grid and for all of us.”
Assembly State and Local Government Chairman Robert Karabinchak, a Democrat from District 18, was also a large proponent of the law’s passing. He called the law’s passage a “three-peat win,” saving time and money for families, solar installers, and the local government itself.
“Households are realizing that by going solar they can break free from utility companies and reduce their electricity bills and reduce climate and air pollutants,” says Karabinchak. “This is a big step forward for New Jerseyans at the exact time we need ratepayer relief on utility bills and to get more clean energy onto the grid. I worked closely with DCA on this legislation and I look forward to working with Gov.-elect Sherrill’s Administration and DCA to implement this program.”
Following up a “slam dunk”
Local legislators aren’t the only ones excited about the new law, says Leah Meredith, mid-Atlantic state affairs director for the Solar Energy Industries Association (SEIA). Meredith called the new law “a win-win across the board” for energy affordability in the Garden State.
“Smart solar permitting ensures that New Jersey residents can lower their electricity bills with rooftop solar without being bogged down by costly red tape that can add up to $7,000 to the cost of an average system,” says Meredith. “Importantly, the new process will ensure safety and reliability of these systems.”
The new law comes as a byproduct of recent voting habits by Garden State residents, who elected Sherrill, a champion for clean energy, just earlier this year.
After she takes office in January, Sherill may continue Governor Murphy’s Energy Master Plan to reach 100% clean energy for New Jersey in 2035.
In addition to making that goal more easily achievable, the new law should remove the red tape bogging down many New Jerseyans who are looking to join the clean energy boom in their state.
“This November, New Jersey voters sent a clear message to leaders across the state that energy affordability is a major concern, and that they see solar and storage as part of the solution,” Meredith says. “By making the process of going solar more efficient and affordable, New Jersey leaders are showing voters that their message was heard loud and clear.”
The bill also allows for communities to decouple from the DCA’s standard energy platform, so long as they can find an alternative. The law offers protection and energy affordability to communities across New Jersey, according to Elowyn Corby, Mid-Atlantic Regional Director for Vote Solar Action Fund, ensuring that no one is locked out of the green transition.
“Along with the other members of the NJ Shines Coalition, we’re excited to see this good idea become law – and we’re grateful to Senator McKeon, Assemblyman Karabinchak, and Governor Murphy for making it happen,” says Corby. “Let’s hit the ground running with implementation in 2026, and accelerate progress toward a resilient and equitable New Jersey that works for everyone.”
Sherrill has promised to call for a state of emergency on utility costs as part of her day one duties as governor Jan. 20. This includes regional grid operator PJM, as well as Atlantic City Electric, Rockland Electric, and others, in the governor-elect’s attempt to “transform” the state’s energy outlook through new clean energy generation.
