New Jersey is one small step closer to meeting its renewable energy goals for 2020. Public Service Electric & Gas, the state’s largest utility, plans to invest $773 million towards the largest pole-mounted solar project in the country.

The company asked state regulators today to approve the "Solar 4 All" proposal, which would bring 120 megawatts of solar energy to customers in its service territory. That’s only 1 percent of the power consumed in the state, and only about 7 percent of New Jersey’s goal for power generated from renewable energy by 2020. But that’s still one step closer. If utilities and state regulators don’t start taking such steps now, they may not meet such large goals in the future.

PSE&G will purchase, own and operate the grid-connected solar energy systems, which the company believes will pay itself off in 15 to 20 years with Solar Renewable Energy Certificates, federal tax credits and the 10 to 35 cents additonal paid per month paid by an average residential customers.

Solar panel systems will be installed in four areas – neighborhoods, government buildings, buildings available for development and affordable housing communities. About a third of the solar panels – generating 40 megawatts – will be installed on 200,000 utility poles, street lights and even cell phone towers, with another third going atop government-owned buildings, such as public schools. PSE&G will generate about 35 megawatts from roof-mounted solar systems on the company’s land and will work with developers to find available brownstones and non-profit buildings on which to install panels. Yet another 2 megawatts will come from roof-mounted panels that will provide electricity at affordable housing communities.

This may sound like a lot of money for such a small percentage of energy gained, but it should be thought of as just one component of the complete plan needed to obtain a more diverse renewable energy portfolio.

Plus, this utility has designed the program to help those who need it most – schools and those who live in affordable housing neighborhoods. Local governments will receive a credit on their utility bill equal to the amount of energy generated by the solar panel system, and the residents in the affordable housing neighborhoods will reap savings on their electricity bills.