NEW JERSEY RESOURCES CORP

CEV actively pursues opportunities in the renewable energy markets, which includes the development, construction and operation of net metered and grid-connected commercial solar projects. In addition, CEV enters into various long-term agreements, including PPAs, to supply energy from commercial solar projects.

Capital expenditures related to clean energy projects are subject to change due to a variety of factors that may affect our ability to commence operations at these projects on a timely basis or at all, including logistics associated with the start-up of commercial solar projects, changes to U.S. trade policy and the impact tariffs and other costs and assessments may have on equipment used to construct, generate, and deliver clean energy, such as timing of construction schedules, the permitting and regulatory process, any delays related to electric grid interconnection. Other factors include economic trends, changes in law, governmental policies, or incentives that support clean energy projects, unforeseen events and the ability to access capital or allocation of capital to other investments or business opportunities. CEV is also subject to various risks, which may include our ability to identify and develop commercial solar asset investments, impacts to our supply chain and our ability to source materials for construction.

The primary contributors toward the value of qualifying clean energy projects are tax incentives, RECs and electricity sales. Changes in the laws and regulations related to the ITC and/or relevant state legislation and regulatory policies affecting the market for solar renewable energy credits could significantly affect future results.

In July 2025, OBBBA was signed into law, which modifies several pre-existing provisions of the Inflation Reduction Act and other laws, including the phase-out of certain clean energy tax credits. In order to be eligible for ITCs, solar facilities must be placed in service by December 31, 2027, unless construction begins before July 4, 2026, and must satisfy the prohibited foreign entity material assistance requirements, unless construction begins before December 31, 2025.

In July 2025, the President of the U.S. issued a federal executive order directing the Secretary of the Treasury to provide revised guidance on determining the beginning of construction for renewable energy projects for purposes of claiming ITCs. In August 2025, the IRS released further guidance to clarify the beginning of construction for renewable energy projects deemed to have started construction on or after September 2, 2025.

While there have been no material impacts to the Company’s financial position or results of operations as of June 30, 2026, resulting from the change in law and revised IRS guidance, these changes may impact our ability to identify, develop and source materials to construct future projects in a way that meets the new requirements established for the ITC framework.

CEV placed five commercial solar projects in service, totaling 44.4 MWs, during the three months ended June 30, 2026, with related expenditures of approximately $123.8M. CEV placed eight commercial solar projects in service totaling 57.8 MWs during the nine months ended June 30, 2026, with related expenditures of approximately $154.0M. CEV placed two commercial solar projects in service totaling 19.3 MWs during the three months ended June 30, 2025, with related expenditures of approximately $55.0M. CEV placed five commercial solar projects in service totaling 32.0 MWs during the nine months ended June 30, 2025, with related expenditures of approximately $83.7M. CEV has approximately 537 MW of commercial solar capacity in service as of June 30, 2026.

CEV may enter into transactions to sell certain of its commercial solar assets concurrent with agreements to lease the assets back over a period of five to eight years. The Company will continue to operate the solar assets and is responsible for related expenses and entitled to retain the revenue generated from RECs and energy sales. ITCs and other tax attributes

Part I

associated with these solar projects transfer to the buyer if applicable; however, the lease payments are structured so that CEV is compensated for the transfer of the related tax incentives. Accordingly, for solar projects financed under sale leasebacks for which the assets were sold during the first five years of in-service life, CEV recognizes the equivalent value of the ITC in other income on the Unaudited Condensed Consolidated Statements of Operations over the respective five-year ITC recapture periods, starting with the second year of the lease. CEV received proceeds of approximately $51.3M and $74.5M during the three months ended June 30, 2026 and 2025, and approximately $100.6M and $100.3M during the nine months ended June 30, 2026 and 2025, respectively, in connection with the sale leaseback of commercial solar assets. As an alternative, CEV may evaluate other structures to monetize the value of ITCs, such as the direct transfer of ITCs to a third party in exchange for cash.

In July 2026, CEV received additional proceeds of $37.4M in connection with the sale leaseback of two commercial solar assets.

CEV operated a residential solar portfolio, which provided qualifying homeowners with the opportunity to have a solar system installed at their home in exchange for monthly lease payments and with no installation or maintenance expenses. In November 2024, CEV completed the sale of its residential solar portfolio, and related assets and liabilities to a third party for a purchase price of $132.5M. See Note 16. Dispositions in the accompanying Unaudited Condensed Consolidated Financial Statements for more details.

For solar installations placed in-service in New Jersey prior to April 30, 2020, each MWh of electricity produced creates an SREC that represents the renewable energy attribute of the solar-electricity generated that can be sold to third parties, predominantly load-serving entities that are required to comply with the solar requirements under New Jersey's renewable portfolio standard.

Following the close of the SREC market in New Jersey, the BPU established the TREC as the successor program to the SREC program. TRECs provide a fixed compensation base multiplied by an assigned project factor in order to determine their value. The project factor is determined by the type and location of the project, as defined. All TRECs generated are required to be purchased monthly by a TREC program administrator as appointed by the BPU.

In July 2021, the BPU established a new successor solar incentive program. This ADI program provides administratively set incentives for net metered projects of 5 MW or less. RECs generated through the production of electricity under this program are known as SREC IIs.

In December 2022, the BPU established the CSI program, which provides incentives to larger solar facilities. It is open to qualifying grid supply solar facilities, non-residential net metered solar installations with a capacity greater than 5 MW, and eligible grid supply solar facilities installed in combination with energy storage. Pricing is determined based on a competitive bid solicitation process.

REC activity for the nine months ended, consisted of the following:

(1)TREC and SREC II inventory balances are due primarily to the timing of generation and when RECs are delivered to the state administrator.

Part I

CEV hedges its expected SREC production through the use of forward sales contracts. The following table reflects the hedged percentage of our projected inventory of SRECs related to CEV's in-service solar assets at June 30, 2026:

(1)Energy years are compliance periods for New Jersey's renewable portfolio standard that run from June 1 to May 31.

There are no direct costs associated with the production of RECs by our solar assets. All related costs are included as a component of O&M on the Unaudited Condensed Consolidated Statements of Operations, including such expenses as facility maintenance and broker fees.

CEV’s financial results are summarized as follows:

Net loss decreased approximately $6.5M during the three months ended June 30, 2026, compared with the three months ended June 30, 2025, due primarily to the following factors:

•$7.1M increase in operating revenues due to higher REC sales; and

•$5.3M increase in other income, net due primarily to the recognition of ITCs associated with solar sale leaseback financing transactions; partially offset by

•$2.2M increase in interest expense, net of capitalized interest due to higher outstanding debt;

•$2.0M increase in income tax expense related to higher operating income; and

•$1.9M increase in depreciation expense as a result of additional solar assets being placed into service.

Net income decreased approximately $33.3M during the nine months ended June 30, 2026, compared with the nine months ended June 30, 2025, due primarily to the following factors:

•$56.1M decrease due to the gain on the sale of the residential solar portfolio in the prior period;

•$6.4M increase in interest expense, net of capitalized interest due to higher outstanding debt; and

•$4.1M increase in depreciation expense as a result of additional solar assets being placed into service; partially offset by

•$14.5M increase in operating revenues due to higher REC sales;

•$10.1M decrease in income tax expense related to lower operating income; and

•$6.6M increase in other income, net due primarily to the recognition of ITCs associated with solar sale leaseback financing transactions.