Public Service Electric and Gas Company (PSE&G) today received approval from state regulators to expand its innovative solar loan program by approximately $143 million to finance the installation of an additional 51 megawatts of solar energy systems on homes, businesses and municipal buildings throughout its electric service area.
Since the utility's initial Solar Loan Program was approved by the New Jersey Board of Public Utilities in April 2008, customers have applied for loans totaling $105 million that would result in 30 megawatts of installed solar capacity. Today's new initiative will result in a total of $248 million available for loans and 81 megawatts of solar power for New Jersey.
PSE&G would provide loans to developers or customers to cover about half of the cost of a solar installation project, depending on the projected output of the solar energy system and the cost of the system. The borrower would repay the principal, plus interest, over 10 years for residential customers and over 15 years for all other borrowers, a considerably longer investment timeframe than traditional lenders are willing to provide for solar installations.
The remaining project cost would be funded by the owner of the solar system. The owner may also be eligible for a federal investment tax credit and rebates from the NJ Clean Energy Program.