The solar power industry just got a big jolt in the arm, not in California, but in New Jersey.

Thanks to a $515 million investment by PSE&G, New Jersey will retain its status as the nation’s second-largest solar power generator. California is first. The investment will generate 80 megawatts of solar power capacity and reduce the state’s greenhouse gas emissions.

Under the Solar 4 All program, PSE&G will spend $314 million to build solar gardens on top of its buildings, as well as on schools, municipal buildings, low-income housing and closed garbage dumps. It’s also hoping to use the solar gardens to encourage business to invest in economic development zones.

The second part of the Solar 4 All project is installation of small solar arrays on the state’s 200,000 utility poles. The $200-million contract went to New Jersey-based Petra Solar, which will build the world’s largest pole-attached solar system. The 40 megawatts from these units will be sold into the wholesale grid. Petra says the contract will create 100 new green jobs in the Garden State. Click here for details. Photos of the pole-mount arrays are here.

Full details of the PSE&G solar program are here.

Granted, New Jersey’s not particularly known as a sunny state, like Arizona, California, and Florida, but that really doesn’t matter for solar power. The Solar Energy Industries Association says solar can work in a variety of areas. Click here for solar FAQS. And, the industry says solar investments usually pay for themselves in four years. Click here for the association’s myth-buster page.

However, PSE&G says its solar project will raise residential electric bills between $1.20 and $4 a year.

Other alternative and energy efficiency programs promoted by PSE&G include:

• $150 million in loans to help pay for 30 megawatt solar gardens on business, residential and municipal building rooftops
• $240 million to provide energy audits at small businesses, hospitals and homes, and
• $50 million to replace mercury vapor street lights with induction fluorescent lights.

Reason for all the investment: State law requires that 22.5% of New Jersey’s electricity be supplied by renewable sources by 2020.