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.”

All FAQs

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FAQ-271:
Does the SREC-Based Financing Program provide any pricing guidelines for bid submission?

Unfortunately, neither the Solicitation Manager nor the EDCs can provide any advice or guidelines on the bid that you submit to the Program.

We note that all bidders compete against each other by submitting Pricing Proposals to win a long-term contract (the SREC Purchase and Sale Agreement or “SREC PSA”) with a given EDC (ACE, JCP&L, or RECO). Generally speaking, the evaluation is based on ranking the Projects for an EDC using the Net Present Value (“NPV”) of the payment stream for one SREC. The NPV is determined both on the basis of price and on the length of the contract (from 10 to 15 years). Please see Section 5 of the RFP Rules for more details on the evaluation procedure.

We note that when the Board approves the results of a solicitation, the Solicitation Manager releases the lowest and the average accepted prices by segment (i.e., on the basis of Project size). These information releases are available on the Announcements page of our Web site). These information releases immediately follow and announce the Board decision on the solicitation results. Although past prices may not be indicative of future prices, these information releases provide all publicly available information regarding prices under the Program.

08/16/2011 in General
FAQ-270:
Does a Project need to be completed this year to qualify for the SREC-Based Financing Program?

We assume that you are referring to a new system for which you would be presenting a Proposal in the upcoming solicitation. Although the SREC-Based Financing Program ("Program") is expected to end during 2011, this does NOT mean that you must complete construction of your Project by the end of 2011 to be eligible to participate in the Program.

08/16/2011 in General
FAQ-269:
Are there any time limits for an SREC generated at a particular time to be used for compliance with the Renewable Portfolio Standards?

Under the proposed rules to implement the Solar Advancement Act of 2010, starting with SRECs generated on July 1, 2010, the SRECs may be used for compliance during the RPS Reporting Year during which they are generated as well as two following RPS Reporting Years. For SRECs generated prior to that date, the SREC may be used for compliance during the RPS Reporting Year during which they are generated as well as the next RPS Reporting Year. These rules are not yet final and are subject to change.

08/16/2011 in General
FAQ-268:
Can SRECs be transferred from one corporation to another?

We cannot directly respond to your inquiry without having more information as to the commercial arrangement that you are considering. We can provide the following general information.

First, 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. 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.

Second, Section I of the Terms and Conditions of the SREC PSA provides the terms under which the SREC PSA may be assigned or transferred. Such assignment or transfer (of the entire contract) generally requires the prior written consent of the EDC (although an assignment for financing purposes may proceed without prior consent form the EDC). Such consent will not be unreasonably withheld.

08/16/2011 in Purchase and Sale Agreement
FAQ-267:
I have heard of a program in which a contractor installs solar energy equipment for free, and the homeowner signs a lease and pays a set amount each month. Do you have any information about this type of program?

We are not aware of such a program but we do not maintain a list of installers. The New Jersey Board of Public Utilities does maintain a list of active renewable installers and vendors and recommends that prospective applicants talk with at least three different vendors early in the project development stage. Please visit
this page
for the list of solar installers.

08/16/2011 in General
FAQ-266:
I was unsuccessful in receiving an award for my project in a previous solicitation. What documents do I need to complete in order to bid in the upcoming solicitation?

If your circumstances have not changed since the previous solicitation, that is, the information (about the Project, the NJCEP Application Number, the Owner, the Host, the Customer, and the Developer) is the same as previously submitted, then you are only required to re-submit three (3) originals of the Certifications and Checklist for Qualifications (provided as Appendix 5 to the RFP Rules and available electronically on our Web site) with original signatures by overnight delivery service to: Solicitation Manager, One Gateway Center, Suite 720, Newark, NJ 07102 (Phone: (973) 297-0880 and Fax: (973) 297-0246). We would appreciate, but do not require, a cover letter from you stating that you are re-submitting your Project and confirming that all information regarding the Project, the NJCEP Application Number, the Owner, the Host, the Customer, and the Developer is the same as previously submitted.

If your circumstances have changed since the previous solicitation, then we may require information in addition to the three (3) originals of the Certifications and Checklist for Qualifications (Appendix 5 to these RFP Rules) with original signatures. The Solicitation Manager will make a determination for your particular case based on the information that has changed since the previous solicitation. We invite you to contact the Solicitation Manager by return email correspondence with a description of the circumstances that have changed so that we may determine if additional documents will be required from you.

08/16/2011 in Requirements for Proposals
FAQ-265:
I have recently moved into a new residence, should I wait at least 12 months in order to have 12 months of electric bills to show my electric usage to participate in your Program?

The electric usage is information needed to apply to the SREC Registration Program (“SRP”) administered by New Jersey’s Clean Energy Program. Please direct your inquiries about the SRP directly to the Office of Clean Energy at 1-866-NJSMART or by using the web form on
this page
.

We are the Solicitation Manager for the SREC-Based Financing Program on behalf of ACE, JCP&L and RECO. There is a link between the two programs (the SRP administered by the Office of Clean Energy and the SREC-Based Financing Program administered by us). The link is that, in order to qualify to bid in the SREC-Based Financing Program, Projects must have already first obtain an NJCEP Application Number through a successful Initial Application under the SRP.

08/16/2011 in Requirements for Proposals
FAQ-264:
Can you confirm that the range of accepted bids in the Seventh Solicitation is between $282 and $342? If so, can you explain why our bid, which is within the range of accepted bid, is rejected?

We are unsure of the source for your information on pricing. The only information released by the Solicitation Manager regarding the results of the Seventh Solicitation is available
here
.

You will note that for the segment of Projects above 500 kW and no more than 2 MW, the average SREC price for a ten-year contract is $280.37 and the lowest SREC price is $250.80.

The Solicitation Manager provides, in the notice of rejection, the reason for your Project not receiving an award. If the reason is that pricing was not competitive, please note that this statement relates to the EDC territory in which the Project resides. The Solicitation Manager ranks Pricing Proposals for each EDC territory separately. Other Projects with lower bid prices for your EDC were selected and received an award. The information release provides pricing information only for the Program as a whole (i.e., for all EDCs combined) and not for each EDC separately. It is possible that Projects that receive awards for one EDC have lower bid prices than the Projects that receive awards for another EDC.

08/16/2011 in General
FAQ-263:
Will the SREC-Based Financing Program extend beyond 2012?

The current SREC-Based Financing Program (“Program”) as approved by the Board ends in 2011. We are aware neither of definite plans for the Program to continue nor of statements that the possibility of additional solar initiatives in the future has been eliminated from consideration. Should such information become available, we will update this response in the future.

08/16/2011 in General
FAQ-262:
What is our liability if we submit a Proposal under the Program and received an award for the Project, but we do not proceed to sign the Purchase and Sale Agreement or submit the deposit as required under the Program Rules?

No additional information can be provided other than what is already included in the FAQs on this issue. Each bidder must, with advice from its counsel, make its own determination on any liability associated with submitting a Proposal under the Program and not proceeding with the Purchase and Sale Agreement in the event of an award.

08/16/2011 in Purchase and Sale Agreement

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