The Residential Development Solar Energy Systems Act, which was signed into law by Governor Jon S. Corzine on March 31, 2009, will require developers to provide significantly more information about renewable energy to buyers. These new obligations will impact the advertising, planning, and building of residential developments in New Jersey.

The act applies to developments with 25 or more units that are intended for owner occupancy. The legislation also requires developers to offer potential buyers the option of installing solar energy systems in cases where the Department of Community Affairs (DCA), in consultation with the Board of Public Utilities (BPU), deems it feasible. The act will take effect 90 days after the DCA adopts technical sufficiency standards.

Developers will be required to disclose in any advertising to prospective buyers

  • The option to install a solar energy system
  • Total cost to install the solar energy system
  • General information about the environmental benefits and cost savings of the solar energy system
  • Information on applicable credits, rebates, or other incentives associated with the installation of the solar energy system

The act is an effort to promote renewable energy and is part of the states Energy Master Plan, which seeks to reduce energy consumption and increase the use of renewable resources. New Jersey is a national leader in solar power and has more active solar projects than any state other than California. Buyers would not be compelled to purchase a solar energy system and, if they elect to do so, would be required to pay for it.

The professionals in Ballard Spahr's Voorhees office are well equipped to assist developers in meeting the additional requirements created by New Jersey's Residential Development Solar Energy Systems Act. Our experience in housing development and financing, as well as environmental law, is extensive.

Copyright © 2009 by Ballard Spahr LLP.
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