Committee backs bill to require smart permitting for residential solar; supporters tout speed, municipalities raise implementation concerns

The committee favorably released A5264 after a long hearing featuring industry advocates, environmental groups and municipal officials who urged technical refinements.

The bill would require the Department of Community Affairs (DCA) to establish and administer a state smart solar permitting platform within one year of the bill’s effective date. The platform would be required to automatically perform plan reviews for residential solar energy systems and instantly release permits or permit revisions for code‑compliant residential systems. The draft requires the platform to perform robust code compliance checks, produce construction documents, be designed to process about 75% of systems on the market, be available 24 hours a day, and allow electronic signatures. Local enforcing agencies would either accept applications through the state platform or implement an alternative platform that meets the same statutory requirements; those local agencies implementing alternatives would file documentation and annual reports with DCA.

Supporters, including the Solar Energy Industries Association (SEIA), Permit Power, Vote Solar Action Fund and industry trade groups, described permitting delays as a major barrier to residential rooftop deployment and said a smart permitting platform such as SolarAPP+ (a US Department of Energy‑endorsed platform) has already issued tens of thousands of permits in other jurisdictions. Steven Pope of SEIA said delayed permits contribute significantly to cancelations and business exits: “Approximately 20% of New Jersey residential solar installations are canceled once initiated and permitting delays are cited as the largest contributing factor to those cancellations.” Witnesses said installers would upload licenses and project specifications and that SolarAPP+ and like systems require proof of appropriate contractor licensing.

Municipal and contractor witnesses, including the New Jersey League of Municipalities and the New Jersey Independent Electrical Contractors (represented by Eric DeJezaro), expressed concerns. The League said many municipalities believe current permitting protects residents and that DCA is already working on electronic permitting. Electrical contractor representatives urged careful drafting around who may perform electrical interconnection work (panel upgrades, breaker derates) and asked the bill require a licensed electrical contractor with a business permit to be responsible for electrical portions of a project; they also opposed any statutory language that could allow waivers of National Electrical Code requirements for the sake of instant permitting.

Lawmakers discussed potential burdens on small, rural municipalities, the possibility of providing model ordinances and training, and concerns about automatic penalties for noncompliance. Supporters and the sponsor said SolarAPP+ is free to jurisdictions and that installer fees typically cover platform costs; they argued smart permitting saves staff time and reduces cancellations. The sponsor asked municipalities to work with DCA and the sponsor’s office on technical fixes.

After testimony and discussion, the committee moved and released the bill as amended on the record; members recorded varied votes in the roll call. The bill was referred for further consideration.