Most child care operators don't realize that a new state law makes it easier and cheaper to install solar on their buildings—if they own or control the property.
Most child care owners in New Jersey have never heard of Bill A4959, the Affordable Power Purchase Agreements Extension Act. But if you own or operate a facility on property you control—or if you're considering a real estate investment to house your program—this law changes the economics of going solar.
New Jersey just doubled the maximum length of renewable energy power purchase agreements (PPAs) from 15 years to 30 years. That's the buried provision in A4959, and it matters because it makes solar financing work.
Here's why: Solar systems are expensive upfront. Most child care operators don't have $50,000 to $200,000 sitting around. Instead, they use a power purchase agreement—a contract where a solar company installs panels on your roof for free, and you buy the electricity they produce at a fixed rate, usually lower than your utility bill.
The catch was always the contract length. At 15 years, the math was tight for solar installers and the financing companies backing them. A 30-year agreement lets them spread costs over a longer period, which means lower rates for you and more projects that actually pencil out.
This applies to child care facilities that either own their building or have a long-term lease with landlord permission. It does not help renters in short-term spaces, since solar companies need security that the contract will outlast their investment.
The law specifically covers PPAs on public-entity sites and facilities, so if your child care is operated by a municipality, school district, or other public body, you're in scope. Private operators should check with solar installers about whether they can use the extended terms—some may, depending on their financing partners.
The law also caps how much rates can increase when the PPA is extended. Any rate increase is capped at the greater of two things: the rate you were already paying, or 20 percent below the current retail electricity rate in your area. That protects you from sticker shock.
A4959 became effective immediately upon enactment. The change is codified in Section 6, which amends the New Jersey Local Public Contracts Law (N.J.S.A. C.40A:11-15, subsection (45)(a)).
If you own your facility or have a long-term lease, contact two or three solar installers and ask whether they can now offer 30-year PPAs in New Jersey. Get quotes. The math may have changed in your favor since the last time you looked.
If you rent, talk to your landlord about whether they'd allow solar on the roof. A 30-year PPA is now attractive enough that some landlords say yes.
The New Jersey Child Care Association and other trade groups have published guides to understanding PPAs and solar financing for small businesses. Those resources can help you ask the right questions.
Source: New Jersey Bill A4959, Affordable Power Purchase Agreements Extension Act, Section 6, amending N.J.S.A. C.40A:11-15(45)(a), effective upon enactment.