New Jersey unanimously passes bill for automated solar permitting

New Jersey passed “smart solar” permitting legislation to expedite the approval process for residential solar and battery systems. The Senate unanimously passed bill A-5265, which will next head to Gov. Phil Murphy’s desk.

The legislation would require the commissioner to provide departments, enforcing agencies and contractors with the “State Smart Solar Permitting Platform.” The local enforcing agency would then be required to allow applicants to submit permits for residential solar energy systems through either the State Smart Solar Permitting Platform or an alternative automated solar permitting platform that satisfies requirements.

“Easing the solar permitting process is one of those rare wins for all involved – saving time and money for families, solar installers, and local governments alike,” said Assembly State and Local Government Chairman Robert Karabinchak (D). “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. This is truly a win-win-win bill for New Jerseyans at the exact moment we need to provide ratepayers with ways to save money and get more clean energy on the grid.”

Nearly one out of five residential solar projects are canceled before the installation starts, with installers citing permitting barriers as the number one reason for the cancelations, according to Environment America. Adopting smart permitting statewide could result in an additional 200,000 residential solar installations in New Jersey by 2040, which would produce an annual savings of between $422 million and $430 million, according to Brown University Climate Solutions Lab.

So long as the governor does not veto the legislation, the new law would require the state permitting platform to:

perform robust code compliance checks to evaluate proposed residential solar energy systems to determine whether they comply with the requirements of the State Uniform Construction Code;
produce construction documents to be used for inspection and recordkeeping purposes under the code;
instantly release a permit or permit revision to construct a residential solar energy system that is in compliance with code;
be designed to process 75% of submitted residential solar energy system permit applications;
be available for use 24 hours a day;
be provided to the department at no cost or low cost if provided by a third party;
allow electronic signatures for the applications and submitted materials;
provide customer service for navigating the state platform; and
be able to process permit applications for residential solar energy systems and associated equipment.

New Jersey has among the slowest permitting timelines in the country. According to the legislation, New Jersey has the fifth slowest known solar permitting timelines of any state in the country. A report released in February by the Regional Plan Association said New Jersey has the third slowest permitting timelines for residential solar.

Increasing solar installations will save New Jersey ratepayers more than $87 million by 2030 and add more than 560 clean energy jobs, according to a letter signed by 33 organizations in support of the bill.

Estimates vary for how much New Jersey’s permit approvals and related barriers increase average project costs, but according to the coalition’s letter, which cites an upcoming Greenhouse Institute analysis, permit approvals and related barriers add an estimated $3,800 to $4,500 to average project costs. The legislation cites estimates from the Solar Energy Industries Association (SEIA), which found New Jersey typically increases the cost of installing a residential solar energy system by $6,000 to $7,000.

“With energy bills on the rise, one of the most direct ways we can protect communities is by making it easier, faster and more affordable to generate clean energy at home,” said Elowyn Corby, Mid-Atlantic regional director for the Vote Solar Action Fund. “No one should be locked out of the clean energy transition, but an unwieldy permitting process can do just that.

Across the United States, 22% of projects that apply for permits are cancelled, most commonly due to permitting delays, according to the Environment Illinois Research & Education Center and the Illinois PIRG Education Fund.

Bills to remove permitting bottlenecks began popping up across the country this year, but most fell flat. Solar permitting bills failed to pass in Minnesota, Massachusetts, Hawaii, New York and Illinois. Florida’s bill was withdrawn from consideration. Colorado technically passed a bill that, as introduced, would have required automated permitting, but the state’s House of Representatives gutted the bulk of the bill.

However, Texas passed a bill that aims to fast-track residential solar and storage installations. California adopted SolarAPP+ last year, with Maryland following suit later that year (while Maryland’s mandate for automated solar permitting does not specifically require SolarAPP+, the state incentivizes its adoption through grants).

Read about other solar-related bills state lawmakers are debating this legislative session here.

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