Bill Text: NJ A5055 | 2026-2027 | Regular Session | Introduced
Bill Title: Establishes solar energy grant program in BPU to provide grants to public schools for solar energy projects; appropriates $15 million.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-05-14 - Introduced, Referred to Assembly Telecommunications and Utilities Committee [A5055 Detail]
Download: New_Jersey-2026-A5055-Introduced.html
Sponsored by:
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
SYNOPSIS
Establishes solar energy grant program in BPU to provide grants to public schools for solar energy projects; appropriates $15 million.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing a solar energy grant program within the Board of Public Utilities, supplementing Title 48 of the Revised Statutes, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Board" means the Board of Public Utilities.
"Department" means the Department of Education.
"Educational services commission" means the same as the term is defined in section 1 of P.L.1968, c.243 (C.18A:6-51).
"Eligible entity" or "eligible applicant" means a New Jersey school district, public school, educational services commission, jointure commission, career or technical school, or community college.
"Eligible project costs" means costs related to the purchase and installation of equipment, permit fees, energy storage, utility interconnection, and any other costs directly related to a solar energy project which are approved by the Board of Public Utilities in consultation with the Office of the Secretary of Higher Education, the Department of Community Affairs, and the Department of Education.
"Eligible solar energy project" means a system containing one or more solar panels and associated equipment, approved by the Board of Public Utilities in consultation with the Office of the Secretary of Higher Education, the Department of Community Affairs, and the Department of Education. "Eligible solar energy project" shall not include a self-funded energy efficiency project that is an energy savings improvement program undertaken pursuant to the provisions of P.L.2009, c.4 (C.18A:18A-4.6 et al.) or P.L.2012, c.55 (C.52:34-25.1 et al.).
"Inflation Reduction Act" means the federal "Inflation Reduction Act of 2022," Pub.L.117-169.
"Jointure commission" means a commission set up by two or more boards of education to carry out jointly by agreement the duties imposed upon them in regard to the education and training of pupils with disabilities.
"Program" means the solar energy project grant program established pursuant to this section.
"Solar panel" means an elevated panel or plate, or a canopy or array thereof, that captures and converts solar radiation to produce electric power.
b. No later than 180 days after the effective date of this act, the board, in consultation with the department, shall establish a program to provide grants to eligible entities to fund eligible solar energy projects. The purpose of the program shall be to assist eligible entities by reducing present and future energy costs, increase resiliency of school energy systems, and take a step towards the State's climate action goals.
c. In order to be eligible for a grant, the applicant shall demonstrate to the board that it is an eligible entity, as defined in subsection a. of this section. The board shall not require the applicant to provide any matching funds in order to be eligible for a grant.
d. Grant awards shall be used by the applicant for eligible project costs related to an eligible solar energy project. The maximum grant amount shall be up to 50 percent of the eligible project costs for the eligible solar energy project.
e. In the event that an eligible entity that received a grant pursuant to this section sells, transfers, or conveys the school facility where the solar energy project is located within 20 years after the date of the award of the grant, the eligible entity that received the grant shall notify the board and the new owner of record shall reimburse the board the amount of the grant related to the solar energy project at the school facility as follows:
(1) if the school facility where the eligible solar energy project is located is sold, transferred, or conveyed to a new owner of record within five years after the date of the award of the grant, the new owner of record shall reimburse the board in an amount equal to 80 percent of the amount of the grant;
(2) if the school facility where the eligible solar energy project is located is sold, transferred, or conveyed to a new owner of record more than five years but less than 10 years after the date of the award of the grant, the new owner of record shall reimburse the board in an amount equal to 60 percent of the amount of the grant;
(3) if the school facility where the eligible solar energy project is located is sold, transferred, or conveyed to a new owner of record more than 10 years but less than 15 years after the date of the award of the grant, the new owner record shall reimburse the board in an amount equal to 40 percent of the amount of the grant; and
(4) if the school facility where the eligible solar energy project is located is sold, transferred or conveyed to a new owner of record more than 15 years but less than 20 years after the date of the award of the grant, the new owner record shall reimburse the board in an amount equal to 20 percent of the amount of the grant.
f. In establishing the grant program pursuant to this section, the board, in consultation with the department, shall:
(1) develop guidelines and procedures for the submission of grant applications, and criteria for the evaluation of such applications;
(2) establish terms and conditions for the awarding of a grant under this section, and monitor grant recipients' compliance with the terms and conditions;
(3) require the recipient of a grant to report to the board information relating to its use of grant funds under the program;
(4) provide technical assistance and information related to funding opportunities through the Inflation Reduction Act;
(5) develop educational materials about using, purchasing, financing, and maintaining eligible solar energy projects;
(6) develop a financial risk and savings report that all eligible solar energy projects shall utilize and update monthly which shall include: the total cost of the eligible solar energy project before any deductible amounts; the total cost of the eligible solar energy project after any deductible amounts; an analysis of energy and cost savings, including a calculation of the kilowatts produced by the eligible solar energy project multiplied by the current cost of electricity per kilowatt hour, subtracted from the total cost of electricity during the same billing period from the previous year; solar renewable energy credit sales and savings; and operations and maintenance costs; and
(7) submit a report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature, during each year in which a grant is awarded, on the effectiveness of the grant program in accomplishing the purposes enumerated in subsection b. of this section.
g. No later than 90 days after the effective date of this section, the board shall publish the guidelines required by paragraph (1) of subsection f. of this section on the board's Internet website.
h. The board, in consultation with the department, may, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to establish and implement the grant program.
2. There is appropriated from the General Fund to the Board of Public Utilities the sum of $15,000,000 to effectuate the provisions of this act.
3. This act shall take effect immediately.
STATEMENT
This bill would establish a solar energy grant program (program), to begin no later than 180 days after the bill's effective date, within the Board of Public Utilities (BPU) to provide grants for school districts, public schools, jointure commissions, educational services commissions, career and technical schools, and community colleges in New Jersey.
The purpose of the program is to assist public schools with reducing present and future energy costs, increase resiliency of school energy systems, and to take a step towards the State's climate action goals. In order to be eligible for a grant, the applicant must be a: school district, public school, jointure commission, educational services commission, State career or technical school, or community college. A grant awarded under the bill would cover up to 50 percent of the eligible solar energy project's eligible costs, which are to be determined by the BPU in consultation with the Office of the Secretary of Higher Education, the Department of Community Affairs, and the Department of Education (DOE).
The bill would require the BPU, in consultation with the DOE, to: develop guidelines and procedures for the submission of grant applications, and criteria for the evaluation of applications; establish terms and conditions for the awarding of a grant and monitor grant recipients' compliance with the terms and conditions; provide technical assistance and information related to funding opportunities through the federal Inflation Reduction Act; develop educational materials about using, purchasing, financing, and maintaining eligible solar energy projects; and develop a financial risk and savings report that all eligible solar energy projects would utilize and update monthly. The BPU would also require the grant recipient to report to the BPU information relating to its use of grant funds under the program. The bill would direct the BPU to submit a report to the Governor and the Legislature, during each year in which a grant is awarded, on the effectiveness of the grant program. Within 90 days of the effective date of the bill, the BPU would be required to publish the guidelines required by paragraph (1) of subsection f. of section 1 of the bill on the BPU's Internet website. The bill would appropriate $15 million, from the General Fund, to effectuate the provisions of the bill.
