"Now that the Board has approved our proposal, we will move as quickly as possible to begin offering solar loans to developers and customers," said Ralph LaRossa, president and COO of PSE&G. "We welcome this new opportunity to play a strong role in meeting the state's aggressive renewable and conservation goals, and reduce carbon emissions."

Initially the program will only be available to non-residential customers. PSE&G needs approval from the NJ Department of Banking and Insurance to provide direct loans to residential customers. There are also plans to review residential loan documents with a group of stakeholders before the program is offered to residential customers.

Filed with the New Jersey Board of Public Utilities (BPU) last April, the innovative proposal was the first of a number of new plans the company announced during 2007 as part of a long-term, comprehensive strategy to combat climate change.

Since then, PSE&G has invested in hybrid vehicles and biofuel, as well as energy efficient wires and transformers. The utility has also proposed a carbon abatement pilot program that would provide energy-saving measures suchas home energy audits, programmable thermostats, attic insulation and high- efficiency lighting upgrades to residential and business customers.

PSE&G's solar program addresses the goals put forth by the state through the Energy Master Plan process, and by the BPU through the renewable portfolio standard (RPS). Both call for the ability to meet 20 percent of the State's energy needs with renewable energy by the year 2020. Solar is a Class I renewable energy supply resource and is specifically called for as a clean source of renewable energy in the state's goals.

The proposal was reviewed by a stakeholder working group, which included BPU staff, the Department of the Public Advocate, solar developers and installers, large energy users, and other electric and gas utilities. These discussions led to a settlement agreement that resolves various issues, paving the way for today's approval by the BPU. The program had received strong support from the solar industry, environmental advocates and the business community when it was first unveiled last year.

The program will support the development of 30 megawatts of solar power, designed to fulfill about 50 percent of the RPS requirements in PSE&G's service area for the energy years 2009 and 2010. That's enough electricity to power 24,000 homes and, in terms of CO2 emissions, is the equivalent of removing about 3,700 cars from the road.