New Jersey Resources (NYSE: NJR) reported May 7 that NJR Clean Energy Ventures (NJRCEV) during the first six months of fiscal 2015 (October 2014-March 2015), placed into service $41.6 million of ground-mounted commercial solar systems in New Jersey, totaling 16 MW.
Subsequent to the second fiscal quarter, in April, NJRCEV placed into service a $1.3 million, 0.4-MW net-metered system at the Franklin Township Board of Education in Hunterdon County, New Jersey. Currently, NJRCEV has two commercial solar projects under construction, both of which are expected to be placed in service this summer. These include a grid-connected system in North Hanover totaling 6 MW, representing an approximate investment of $15.8 million, and a 3.9-MW grid-connected system in Harmony, New Jersey, which has an approximate investment of $11.6 million.
During the latest quarter, NJRCEV’s residential solar portfolio grew to over 30 MW. The Sunlight Advantage provides savings to eligible homeowners through both roof- and ground-mounted solar systems with no upfront installation or maintenance costs. NJRCEV currently expects to invest approximately $32 million in residential solar systems in fiscal 2015, compared with $31.5 million in fiscal 2014.
During the quarter, NJRCEV announced the completion of the Carroll Area Wind Farm. The project, NJRCEV’s second wind farm in operation, has a total capacity of 20 MW and represents an investment of approximately $42 million. The project’s entire energy output, capacity benefits and renewable attributes will be sold through a 25-year power purchase agreement (PPA) with MidAmerican Energy, Iowa’s largest energy company. The wind farm qualifies for federal production tax credits (PTC), which are based on a kilowatt-hour output. All PTCs generated by the Carroll Area Wind Farm will be utilized by NJR.
Construction continues on NJRCEV’s third onshore wind project, the Alexander Wind Farm, located on 7,000 acres of land in Rush County, Kansas, approximately 120 miles northwest of Wichita. NJRCEV will invest about $85 million to construct, own and operate the wind farm with a total capacity of 48 MW. Energy and renewable attributes produced at the Alexander Wind Farm will be sold under two separate long-term agreements. The Kansas City Board of Public Utilities has signed a 20-year PPA for approximately 50% of the energy. Yahoo! Inc., the global Internet company, has signed a 15-year agreement to offset much of its energy usage in the Great Plains region. NJRCEV expects the Alexander Wind Farm to also qualify for federal PTCs, which will be utilized by NJR. NJRCEV expects this project to be placed in service in the fall of 2015.
New Jersey Resources is a Fortune 1000 company with five primary businesses: New Jersey Natural Gas, which operates and maintains over 7,000 miles of natural gas transportation and distribution infrastructure; NJR Energy Services, which manages a portfolio of natural gas transportation and storage assets; NJR Clean Energy Ventures, which invests in, owns and operates solar and onshore wind projects with a total capacity of over 130 MW; NJR Midstream, which serves customers from local distributors and producers to electric generators and wholesale marketers through its equity ownership in a natural gas storage facility and a transportation pipeline; and NJR Home Services, which provides heating, central air conditioning, standby generators, solar and other indoor and outdoor comfort products to residential homes and businesses throughout New Jersey.