FAQs

Answers to your Frequently Asked Questions ("FAQs") are posted on this page. To ask a question, please use our automated form. FAQs will be posted every Wednesday. FAQs will be posted daily during the week prior to the deadline for submitting Pricing Proposals and Qualification Materials.”

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• FAQ-291:
  Step 3 of the NJEDC Solar - Program Guide on the Documents page states:
  
  “If the Owner of the Project is not the same individual or entity as the Host, you must submit one (1) electronic copy in pdf format of the “Host’s Acknowledgement and Certification”, provided as Appendix C to the SREC Purchase and Sale Agreement, signed by the Host. The Owner of the Project may instead submit three (3) originals of Appendix C to the SREC PSA with original signatures from the Host, in which case the Solicitation Manager will transmit these signature pages to the EDC if the Board approves the Proposal for the Project.”
  
  Could you please provide some guidance on this point?
  
  

  The Seller and signatory under the SREC PSA must be the Owner of the Project.  Whether the Developer or the Customer/Host signs the SREC PSA depends on whether the Developer or the Customer/Host owns the Project.
  
  If the Project receives an award from the Board, the Owner of the Project will provide a cash deposit within fourteen (14) days of Board approval. The amount of the cash deposit is $75 per kW, provided that this amount will not be less than $500 and will not exceed $20,000. 
  
  Once the Board Order is no longer subject to appeal, which occurs forty-five days after the date of service of the Board Order, the EDC will provide to the Owner of the Project a final contract (the SREC Purchase and Sale Agreement or “SREC PSA”).  At that point, the Owner of the Project will have five (5) business days to execute and enter into the SREC PSA with the EDC. If the Owner of the Project does not enter into the SREC PSA with the EDC, the Owner of the Project will lose its cash deposit.
  
  While the SREC PSA is signed only after the Board Order on the results is no longer subject to appeal, Appendix C of the SREC PSA must be submitted with the Proposal.  Such a requirement applies if the Host (the entity or individual who owns the premises where the Project will reside) and the Owner (the Owner of the Project and Seller under the SREC PSA) are not one and the same.

  
  
  09/19/2011 in Purchase and Sale Agreement
  
  
• FAQ-290:
  I understand there is a maximum penalty of $20,000 for failing to execute the SREC Purchase and Sale Agreement (“SREC PSA”) after the Final Notice. Is there a penalty for failing to construct the project after executing the SREC PSA? Also, is there a penalty for completing construction of the project after the twelve month deadline?
  
  

  If the Project receives an award from the Board, the Owner of the Project will provide a cash deposit within fourteen (14) days of Board approval. The amount of the cash deposit is $75 per kW, provided that this amount will not be less than $500 and will not exceed $20,000. 
  
  Once the Board Order is no longer subject to appeal, which occurs forty-five days after the date of service of the Board Order, the EDC will provide to the Owner of the Project a final contract (the SREC Purchase and Sale Agreement or “SREC PSA”).  At that point, the Owner of the Project will have five (5) business days to execute and enter into the SREC PSA with the EDC. If the Owner of the Project does not enter into the SREC PSA with the EDC, the Owner of the Project will lose its cash deposit.
  
  The deposit may also be retained by the EDC for failure by the Owner of the Project to satisfy a number of commitments made by the Owner in the SREC PSA, including completing construction of the Project within one year of executing the SREC PSA.  However, this period of one year can be extended following a petition to the Board.  If the Owner of the Project enters into the SREC PSA with the EDC, constructs the Project within one year, and satisfies all other conditions of the SREC PSA as specified in paragraph 11 of Section A to Appendix A of the SREC PSA, the deposit will be returned, without interest, once the Project starts operating.  Please see Section A of Appendix A to the SREC PSA.

  
  
  09/19/2011 in Purchase and Sale Agreement
  
  
• FAQ-289:
  If I am awarded a ten-year contract, what happens to the SRECs generated after the tenth year?
  
  

  In your Pricing Proposal under the SREC-Based Financing Program ("Program"), you will be required to provide (i) a price per SREC; (ii) a number of years for the contract; (iii) the size of the Project; and (iv) the EDC territory in which the Project resides. 
  
  The number of years for the contract (or "Duration") can be between 10 and 15 years.  You may select 10, 11, 12, 13, 14, or 15 years.  If you select 10 years, you may then sell SRECs that are produced after the ten years of the contract on the open market.  Please see section 3.1 of the RFP Rules available on the Documents page of our Web site.

  
  
  09/19/2011 in General
  
  
• FAQ-288:
  How close is RECO to meeting its 3.77 MW target under the SREC-Based Financing Program and will there be another RFP after the September 2011 solicitation (Round 8)?
  
  

  Please note that at this point there is only one solicitation (Round 8) confirmed to take place in 2011 under the Program. The schedule for this solicitation (Round 8) is posted to the Calendar page.  There will only be an additional solicitation with pricing proposals due on December 2, 2011 if the EDCs do not receive a sufficient number of competitive proposals in this current solicitation to fill the remaining capacity planned under the Program.  At this point RECO is looking to procure an additional 154.37 kW; the remainder of RECO's goal has been filled.

  
  
  09/19/2011 in General
  
  
• FAQ-287:
  For the September 2011 solicitation, if I submit a project for RECO that is larger than RECO’s planned quantity of 154.31 kW, can the system be partially awarded for 154.31 kW? In other words, can I break up the project into two parts—one part that is 154.31 kW and another part that is the remaining size of the project?
  
  

  The planned quantity for RECO in this upcoming solicitation is 154.31 kW.  The RFP Rules state that when the Solicitation Manager makes the initial selection of bids, the first rejected Project is the first Project for which the quantity selected exceeds the planned quantity by more than 150 kW, or the first Project for which the Price is not competitive, whichever comes first.  Thus, under this initial selection a project of up to 304.31 kW could initially be selected for RECO.  The Board determines the awards and the final selection of Projects for each EDC.
  
  If you submit a Proposal for a Project, the Proposal must be for the entire Project so that if the Owner received an award under the Program, the Owner would sell all SRECs produced by the Project to an EDC.  A partial purchase of a Project is not possible under the Program.
  
  We assume from your question that if you "break up" the installation into two parts, there would be two systems in the same location.  Under the Program, a Project is tied to a given EDC meter (and given customer account) and to a given NJCEP Initial Application number (obtained under either the Renewable Energy Incentive Program ("REIP") or the SREC Registration Program ("SRP")).  You may submit a Proposal for one or both of these Projects, as long as each Project is tied to a different EDC meter, and each Project has a different NJCEP Initial Application number.  Please note that any Project submitted to the Program must also otherwise satisfy all requirements under the Program.  Please consult the RFP Rules available on the Documents page of our Web site for the complete requirements under the Program.

  
  
  09/19/2011 in General
  
  
• FAQ-286:
  We are developing two projects at one location for the same host. The projects have two separate SRP numbers, and will be tied to two different EDC meters and utility company account numbers. I have read FAQ #66 and want to confirm that these are considered two separate "Projects" and, as such, we can submit a different SREC bid price for each Project. Please confirm.
  
  

  That is correct.

  
  
  09/01/2011 in Requirements for Proposals
  
  
• FAQ-285:
  Is Round 8 the last solicitation under the Program or will there be another round?
  
  

  Please note that there is only one solicitation (Round 8) confirmed to take place in 2011 under the Program. The schedule for this solicitation (Round 8) is posted to the Calendar page.  There will only be an additional solicitation with pricing proposals due on December 2, 2011 if the EDCs do not receive a sufficient number of competitive proposals in this current solicitation to fill the remaining capacity planned under the Program.  At this point RECO is looking to procure an additional 154.37 kW; the remainder of RECO's goal has been filled.

  
  
  09/01/2011 in General
  
  
• FAQ-284:
  How does the increase in the EDC-specific quantities for the September 2011 solicitation provided in your August 17, 2011 announcement affect the 2012 Reporting year planned quantities and the application of the Developer Cap?
  
  

  The planned quantities for the 2012 RPS Reporting Year are provided in Table 1 of the RFP Rules dated August 17, 2011. Please note that these planned quantities were announced by the Board and have not changed. Please also note that, under the Developer Cap, the capacity of Projects awarded to a Developer or group of affiliated Developers may exceed 20% of the planned quantity for an EDC but by no more than 150 kW or 30% of the last accepted Project, whichever is greater.

  
  
  08/27/2011 in General
  
  
• FAQ-283:
  Please clarify the terms “Owner”, “Customer” and “Host” as used under the Program.
  
  

  The “Owner” is an individual or company that owns the Project and who would be the Seller under the SREC Purchase and Sale Agreement should the Project be successful under the Program. A “Host” is an individual or entity that owns the premises or facility where the Project will reside. A “Customer” is a ratepayer in ACE’s, JCP&L’s or RECO’s service territory at the premises or facility where the Project will reside; the name on the utility bill is the Customer’s

  
  
  08/27/2011 in General
  
  
• FAQ-282:
  Are Solar Renewable Energy Certificates (“SRECs”) assignable under the SREC-Based Financing Program?
  
  

  Under the SREC Purchase and Sale Agreement (“SREC PSA”), the party that owns the Project and the party that receives the SRECs and sells the SRECs to the EDC must be one and the same. In that sense the SRECs are NOT assignable. Although many commercial arrangements can be accommodated within the Program, the assignment of SRECs to a party other than the Owner of the Project is not contemplated by the SREC PSA.

  Assignment of the SREC PSA itself is contemplated under Section I of its Terms and Conditions. Such assignment or transfer generally requires the prior written consent of the EDC. Such consent will not be unreasonably withheld.

  
  
  08/27/2011 in Purchase and Sale Agreement
  
  

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