Governor Mikie Sherrill Enacts S4162 Expanding Solar Power Purchase Agreements for Public Schools

TRENTON, NJ — Governor Mikie Sherrill signed Senate Bill 4162 into law, enacting the Affordable Power Purchase Agreements Extension Act to allow local boards of education, county colleges, and municipal governments to execute 25-year solar and clean energy power purchase agreements (PPAs).

Lowering Property Taxpayer Burdens with Clean Energy Contracts

The enacted legislation expands New Jersey’s legacy 15-year statutory contracting limit to 25 years, aligning municipal procurement law with the multi-decade lifespan of modern commercial rooftop solar panels and battery storage systems. The extended contract terms enable third-party solar developers to finance zero-upfront-cost solar canopy installations over public school parking lots and municipal rooftops, locking in fixed clean power rates 30% below standard electric utility tariffs.

Governor Sherrill noted that the legislation provides win-win fiscal relief, helping local public school districts cut energy bills while advancing New Jersey's clean energy standards.

School Boards and Solar Industry Endorsements

The New Jersey School Boards Association (NJSBA) praised the measure for providing predictable long-term utility budget stability.

Mid-Atlantic Solar & Storage Industries Association (MSSIA) projected the law will unlock $350 million in private commercial solar investment across municipal properties.

Procurement Guidance Rollout

The New Jersey Board of Public Utilities (BPU) and Department of Community Affairs will issue updated model PPA contracts by October 2026.