EPA $156 Million Grant to Provide Solar Power, Lower Energy Costs and Advance Environmental Justice Across New Jersey

EPA $156 Million Grant to Provide Solar Power, Lower Energy Costs and Advance Environmental Justice Across New Jersey

September 5, 2024

Edison, N.J.- The U.S. Environmental Protection Agency has awarded the New Jersey Board of Public Utilities $156 million under the Solar for All Program to develop long-lasting solar programs that enable low-income and disadvantaged communities to benefit from solar power. This award is part of EPA's historic $27 billion Greenhouse Gas Reduction Fund created under President Biden's Inflation Reduction Act.

EPA Regional Administrator Lisa F. Garcia, Rep. Frank Pallone and NJBPU President Christine Guhl-Sadovy stood together with local elected officials, solar developers, and local leaders at a rooftop community solar site in Edison, N.J. The gathering highlighted the transformative impact this award will have on New Jersey communities by lowering energy costs for families, creating good-quality jobs in underserved communities, advancing environmental justice and tackling the climate crisis.

"EPA's Solar for All initiative will help ensure that clean energy solutions reach and benefit the communities most affected by climate change," said EPA Regional Administrator Lisa F. Garcia. "This grant will enable New Jersey communities to adopt solar power, lower greenhouse gas emissions, and create green jobs."

"The EPA's $156 million investment in New Jersey's Board of Public Utilities is a game-changer that will help low-income and disadvantaged communities have access to clean, renewable solar energy," said Senator Cory Booker. "This funding through the Biden-Harris administration's Solar for All Program was made possible by the Inflation Reduction Act, legislation passed by Congressional Democrats that is helping our nation tackle the climate crisis, save families money on their energy bills, and pave the way for a more equitable and sustainable future for our most vulnerable communities. Every community, regardless of income, should be able to participate in and benefit from the transition to clean energy."

"Projects like the one in Edison are exactly what I envisioned when I fought to include these critical climate investments in the Inflation Reduction Act," said Congressman Frank Pallone (NJ-06). "It's fitting that a town named after one of the greatest minds in electricity is now leading the way in energy innovation. This initiative will make clean energy accessible to everyone, especially in low-income and disadvantaged communities, while creating jobs and saving families money. I remain as committed as ever to ensuring that these community solar projects continue to grow and benefit New Jersey and the entire country."

"Thanks to the Biden Administration's landmark Inflation Reduction Act and Greenhouse Gas Reduction Fund, New Jersey will further its nation-leading efforts to achieve bold climate action and clean energy equity," said New Jersey Board of Public Utilities President Christine Guhl-Sadovy. "New Jersey's $156 million Solar for All award will result in significant emissions reductions and millions of dollars in energy bill savings, including for thousands of low-income disadvantaged community households."

The State of New Jersey through NJBPU designed its New Jersey Solar for All to tackle the major barriers that have prevented the adoption of solar energy by low-income and disadvantaged households. Funding through the EPA Solar for All program will support the development of residential solar, multi-family housing solar and storage, residential-serving community solar, and technical assistance and workforce development. The State expects the program to accelerate the energy transition in underserved communities by serving tens of thousands of households in low-income and disadvantaged communities.

Today's event took place at a rooftop community solar project currently under construction in Edison, N.J. The project, which is being constructed by Solar Landscape and is sited on a building owned by Prologis, received tax credits from the Inflation Reduction Act. It serves as a model for the type of projects NJBPU will undertake with its EPA Solar for All funding support. Once complete, the project will serve about 440 local households, at least half of which are low-to-moderate income. The 2.82-megawatt capacity system will save each household over $250 per year, lowering energy bills by a total of more than $111,000 per year for subscribers.

Background

NJBPU is among 49 state-level recipients to receive a total of approximately $5.5 billion under the EPA Solar for All program. In addition, there are six awards to serve Tribes totaling over $500 million and five multistate awards totaling approximately $1 billion.

A complete list of the selected applicants can be found on EPA's Greenhouse Gas Reduction Fund Solar for All website.

EPA estimates that the 60 Solar for All recipients will enable over 900,000 households in low-income and disadvantaged communities to deploy and benefit from distributed solar energy. This $7 billion investment will generate over $350 million in annual savings on electric bills for overburdened households. The program will reduce 30 million metric tons of carbon dioxide equivalent emissions cumulatively, from over four gigawatts of solar energy capacity unlocked for low-income communities over five years. Solar and distributed energy resources help improve electric grid reliability and climate resilience, which is especially important in disadvantaged communities that have long been underserved.

Solar for All will deliver on the Biden-Harris Administration's commitment to creating high-quality jobs with the free and fair choice to join a union for workers across the United States. This $7 billion investment in clean energy will generate an estimated 200,000 jobs across the country. All selected applicants intend to invest in local, clean energy workforce development programs to expand equitable pathways into family-sustaining jobs for the communities they are designed to serve. At least 35% of selected applicants have already engaged local or national unions, demonstrating how these programs will contribute to the foundation of a clean energy economy built on strong labor standards and inclusive economic opportunity for all American communities.

The Solar for All program also advances President Biden's Justice40 Initiative, which set the goal that 40% of the overall benefits of certain federal climate, clean energy, affordable and sustainable housing, and other investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. All the funds awarded through the Solar for All program will be invested in low-income and disadvantaged communities.

The program will also help meet the President's goal of achieving a carbon pollution-free power sector by 2035 and net-zero emissions economy by no later than 2050.

The 60 selected applicants have committed to delivering on the three objectives of the Greenhouse Gas Reduction Fund: reducing climate and air pollution; delivering benefits to low-income and disadvantaged communities; and mobilizing financing to spur additional deployment of affordable solar energy. Solar for All selected applicants are expanding existing low-income solar programs and launching new programs. In at least 25 states and territories nationwide, Solar for All is launching new programs where there has never been a substantial low-income solar program before. In these geographies, Solar for All selected applicants will open new markets for distributed solar by funding new programs that provide grants and low-cost financing for low-income, residential solar.

What They Are Saying

"As we transition to a clean energy economy, it is critically important that all communities reap the benefits. Community solar installations in overburdened communities improve local air quality and public health, while reducing energy costs for families and creating good local jobs," said New Jersey Environmental Protection Commissioner Shawn M. LaTourette. "DEP is grateful to our federal partners and the Murphy Administration for our joint commitment to reducing greenhouse gas emissions, a commitment clearly demonstrated by investing in programs like Solar for All to better protect the environment we share."

"As the effects of the climate crisis intensify, it's imperative that we continue to bring crucial clean energy projects online," said New Jersey Senator Bob Smith. "Through this unprecedented federal funding, New Jersey will continue to expand its growing solar industry, which remains at the core of our comprehensive climate action strategy."

"NJBPU's expansion of solar programs through the federal Greenhouse Gas Reduction Fund will benefit low-income families and environmental justice communities," said New Jersey Senator Patrick Diegnan. "This program will provide needed funding to lower energy costs for disadvantaged communities and will enhance air quality for all residents of our state. It will also create thousands of good-paying jobs while addressing our climate crisis."

"This funding is a crucial step forward in our efforts to ensure that every resident, regardless of income or zip code, can benefit from clean energy. It is a major win for our community, allowing us to expand access to solar power, lower energy costs for families, and invest in a cleaner, healthier environment," said 18th Legislative District Assemblyman Robert J. Karabinchak. "I am proud to see New Jersey leading the way in renewable energy. This grant will empower us to bring solar energy to foster a more sustainable future and a stronger local economy."

"I am incredibly proud to stand alongside my state and local colleagues as we celebrate this $156.1 million grant from the U.S. EPA that will be used to expand solar programs for low-income and disadvantaged communities. It is no secret that our low-income residents face the highest risk of bearing the worst of the negative effects brought on by climate change. Which is why this funding is crucial to our ability as your State Government to live up to our responsibility to not only protect all our residents from the scourge of climate change, but also to ensure that none of our fellow New Jerseyans are left behind as we transition to more sustainable and ultimately more affordable forms of energy production," said 18th Legislative District Assemblyman Sterley S. Stanley. "I commend the entirety of our federal delegation and all those who worked to make this incredible funding a reality and I look forward to bearing witness to the incredible growth that this funding will facilitate for our communities!"

"The Township of Edison is proud to welcome the Biden and Murphy Administrations as they unveil historic funding to spur clean energy investment and cost-savings, especially for residents in our great town," said Township of Edison Mayor Sam Joshi. "We look forward to seeing the success of this project here in Edison replicated in communities across the state."

"Community solar installations on commercial rooftops are America's most shovel-ready clean energy option," said President of Solar Landscape Mark Schottinger. "Projects like this one are creating real world benefits today: creating jobs, reducing costs and advancing America's clean energy economy. Thanks to the EPA, the Murphy Administration and companies like Prologis, community solar is a proven model that can be replicated nationwide, delivering on the promise of an affordable, equitable energy future."

"Rooftop solar projects like this one enable Prologis customers to reduce their emissions, benefit local communities by gaining access to renewable energy, and improve grid resilience," said Prologis Senior Vice President and Market Officer Mike Sacro. "Approximately 89MW of community solar will be built on Prologis rooftops in New Jersey between now and spring 2026, with the majority of the energy benefitting low-moderate income residents through community solar discounts."

"This grant will enable low-income and overburdened communities to take advantage of clean, renewable solar power to mitigate climate change and clean up our air. Not only will community solar help our environment, but it will bring real savings to New Jersey residents and provide good-paying, family-sustaining jobs in the clean-energy economy," said Ed Potosnak, executive director of the New Jersey League of Conservation Voters. "Solar energy has the potential to meet 30-40% of energy capacity needs in New Jersey by 2050. We commend Governor Murphy and the staff at the BPU for pursuing this grant to advance community solar and create healthier communities while providing financial savings for residents who live with energy insecurity."

"The New Jersey Sierra Club is excited to see the EPA's selection of the NJBPU to receive Solar for All federal funding. These are crucial dollars that will make our transition to clean energy more just and more inclusive for New Jerseyans by expanding access to solar power," said Anjuli Ramos-Busot, director of the Sierra Club New Jersey Chapter. "This is what energy justice looks like in practice, and we hope to see more investments like this in the future to make clean energy and clean air a right rather than a privilege."

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