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-240:
    A final version of the Bidding form is not available on the website. What should accompany the Bid form besides Project Proposal Sheet and Host Acknowledgment & Certification?

    The Bid Form posted to the Web site is a sample and is provided for illustrative purposes only. A customized Bid Form for each Project for which you have submitted a complete Expression of Interest will be emailed to you by the Solicitation Manager.

    For Qualification Materials, the required information and documents are described in Article 4 of the document entitled RFP Rules. The forms (including the Proposal Summary Sheet and the Certifications and Checklist for Qualifications) that you will need to submit your Qualification Materials are available on the Documents (http://www.njedcsolar.com/documents.cfm) page of our Web site. The Proposal Summary Sheet is submitted by email while the rest of the Qualification Materials are submitted by overnight delivery service.

    An overview of these steps is provided in our Program Guide, which can be found on the Documents page of our web site.



    08/04/2011 in Requirements for Proposals

  • FAQ-239:
    What is a realistic expectation for SREC price sold directly to ACE for 5, 7 or 10 year term?

    The SREC-Based Financing Program ("Program") is a program through which ACE contracts to purchase solar Renewable Energy Certificates ("SRECs") from solar projects for terms from 10 to 15 years. The Solicitation Manager is not aware of ACE purchasing directly SRECs for 5, 7, or 10-year terms and cannot respond directly to this request.



    08/04/2011 in General

  • FAQ-238:
    I understand if deposits are submitted, then they are lost if the project does not move forward, but what happens if the project is cancelled before deposits are submitted?

    As part of the Qualification Materials, the Owner of the Project certifies that it accepts all the terms of the SREC Purchase and Sale Agreement ("SREC PSA") and that the Owner will sign the SREC PSA within five (5) business days of receiving a Final Notice of Award by the EDC. If an Owner receives an award for a Project and the Project is not completed, the Owner is subject to a forfeit of any deposit it has posted. There are no provisions in the SREC Purchase and Sale Agreement (“SREC PSA”), the Stipulation, or in the current RFP documents for additional penalties for breach of the certifications offered in the Qualification Materials.

    However, once the Owner has failed to sign the SREC PSA and forfeited the award, the Owner of such of Project may not re-submit the same Project to the Program at a higher price unless: (a) the Owner of the Project provided the cash deposit for the Project in the previous solicitation within the timeframe required; and (b) the period between the submission of Pricing Proposals is no less than six (6) months. The Owner may resubmit the Project at the same or a lower price.



    08/04/2011 in Purchase and Sale Agreement

  • FAQ-237:
    How do we petition for an extension of time to build a system which is under an existing SREC PSA with JCP&L? Our installation was delayed by weather and it is taking longer than the one year stipulated in the SREC PSA to complete the system.

    Please see Paragraph 3 of Section A of the SREC PSA’s General Terms and Conditions. To extend the one-year period before completion of the Project is required, the Owner of the Project has to formally petition the Board for such an extension. If the Board accepts the petition, this decision would be memorialized under a Board Order. Please contact the Board directly for exact procedures for filing of such a petition.



    08/04/2011 in Purchase and Sale Agreement

  • FAQ-236:
    We aggregate for many of our customers after their projects are built. Can we aggregate for customers that have a long-term SREC contract?

    The SREC Purchase and Sale Agreement (“SREC PSA”) does not contemplate an arrangement whereby several projects are aggregated. Each SREC PSA corresponds to a different project, as specified in Appendix B, with its own specific account with PJM-EIS GATS and its own specific price.



    08/04/2011 in General

  • FAQ-235:
    To confirm that we are reading the rules correctly and are within the Developer Cap across all our projects, if we submit (assuming they are all price competitive proposals) in ACE territory the following system sizes:
    System-1: 174.800 kW
    System-2: 402.500 kW
    System-3: 1,399.780 kW
    Given that we have not submitted on any previous rounds and have no last accepted proposals, will you accept all three of these projects, since the total is 1,977.080 kW ... and 30% of this amount (593.124 kW) does not exceed the planned quantity by 20%? We note that FAQ-234 states that the largest project size for a single project is 1,978.674 kW.


     

    That is incorrect.
     
    The figure of 1,978.674 kW is for the case where a proponent submits a SINGLE project in the ACE territory during the 2012 Reporting Year. The calculation of the developer proceeds differently if a proponent is submitting more than one project.
     
    Specifically, the RFP Rules state that the combined awards across all solicitations in a given RPS Reporting Year for a given EDC (ACE or JCP&L) that are associated with any one Developer, or any combination of affiliated Developers under the same majority ownership, do not exceed 20% of the planned quantity for that EDC in that RPS Reporting Year by more than the larger of: (a) 150 kW; or (b) 30% of the system size of the last accepted Proposal associated with that Developer (or any combination of affiliated Developers under the same majority ownership).
     
    Please consider the following examples.
     
    Example 1. A proponent submits a bid for a single project in ACE's territory with a size of 1,800 kW and a price of $400/SREC. 
    -- The size of the project (1,800 kW) exceeds 20% of the planned quantity (1385.072 kW) by 414.928 kW. 
    -- The last accepted project is the only project with a size of 1,800 kW.
    -- The larger of: (a) 150 kW; and (b) 30% of the system size 0.3*1,800 kW = 540 kW; is: 540 kW
    -- The award exceeds the planned quantity by less than 30% of the system size (414.928 < 540). 
    The proponent does NOT exceed the developer cap. 
     
    Example 2. A proponent submits a bid for two projects, one with a size of 450 kW at a price of $500/SREC and another with a size of 1,350 kW at a price of $400/SREC. Both projects are for a duration of 10 years. Note that the total combined size is 1,800 kW, the same as in the first example.
    -- The size of the projects (1,800 kW) exceeds 20% of the planned quantity (1385.072 kW) by 414.928 kW. 
    -- The last accepted project, assuming both projects are competitive, would be the 450 kW project since it has a higher price. 
    -- The larger of: (a) 150 kW; and (b) 30% of the system size 0.3*450 kW = 135 kW; is: 150 kW
    -- The awards exceed the planned quantity by MORE than 150 kW (414.928 > 150).
    The proponent DOES exceed the developer cap and the 450 kW project could be rejected for that reason.
     
    Example 3. A proponent submits a bid for two projects, one with a size of 450 kW at a price of $400/SREC and another with a size of 1,350 kW at a price of $500/SREC. Both projects are for a duration of 10 years. Note that the total combined size is 1,800 kW, the same as in the first example.
    -- The size of the projects (1,800 kW) exceeds 20% of the planned quantity (1385.072 kW) by 414.928 kW. 
    -- The last accepted project, assuming both projects are competitive, would be the 1350 kW project since it has a higher price. 
    -- The larger of: (a) 150 kW; and (b) 30% of the system size 0.3*1350 kW = 405 kW; is: 405 kW
    -- The awards exceed the planned quantity by MORE than 30% of the system size (414.928 > 405).
    The proponent DOES exceed the developer cap and the 1350 kW project could be rejected for that reason.
     
    What these examples illustrate is that it is not only the total amount of capacity across projects that matters but also how that capacity may be distributed across one or several projects. Although your projects add up to less than 1,978.674 kW, the three projects together exceed the developer cap. Again, the figure of 1978.674 applies only to a SINGLE project.
     
    For example, if system 3 has a price of $400, system 1 has a price of $450, and system 2 has a price of $500:
    -- The size of all three projects (1,977.08) exceeds 20% of the planned quantity (1385.072 kW) by 592.008 kW. 
    -- The last accepted project, assuming all projects are competitive, would be system 2. 
    -- The larger of: (a) 150 kW; and (b) 30% of the system size 0.3*402.5 kW; is: 150 kW
    -- The awards exceed the planned quantity by MORE than 150 kW (592.008 > 150) Thus system 2 could be rejected for developer cap reasons. Further, considering just systems 1 and 3:
    -- The size of the projects (1574.58 kW) exceeds 20% of the planned quantity (1385.072 kW) by 189.508 kW. 
    -- The last accepted project, assuming both projects are competitive, would be system 1. 
    -- The larger of: (a) 150 kW; and (b) 30% of the system size 0.3*174.8 kW; is: 150 kW
    -- The awards exceed the planned quantity by MORE than 150 kW (189.508 > 150).
    Thus system 1 could also be rejected for developer cap reasons.
     

    Maintaining the sizes for systems 1 and 2 at their current levels, the maximum size for system 3 to keep all three systems under the cap when system 3 is the last accepted project would be 1153.960 kW. In that case the sum of all three system sizes is 1731.260 kW, which exceeds 20% of the planned quantities by 346.188 kW, which is equal to 30% of the last accepted system size. Maintaining the sizes of systems 1 and 2 at their current level, the maximum size for system 3 to keep all three systems under the cap when system 3 is NOT the last accepted project would be 957.772 kW. In that case the sum of all three system sizes is 1535.072 kW, which exceeds 20% of the planned quantity by 150 kW.

     



    08/04/2011 in Evaluation of Proposals

  • FAQ-234:
    The ACE Territory Developer Cap is 1,385.072 kW, and there is the provision of Section 5.1.19 margins for developer caps: (a) 150 kW; or (b) if the Program is undersubscribed in the prior Reporting Year, 30% of the system size of the last accepted Proposal associated with that Developer (or any combination of affiliated Developers under the same majority ownership). What is the largest single system size that a developer can bid in ACE Territory?

    The maximum system size for a single Project in ACE's territory for this 2012 RPS Reporting Year is 1,978.674 kW. All projects that have a size that exceeds this maximum will automatically be rejected.

    The planned quantity for ACE is 6,925.359 kW. This maximum size ensures that the size of the Project (1,978.674 kW) does not exceed 20% of the planned quantity (1385.072 kW) by more than 30% of the system (593.602 kW).

    Please note that the above applies in the case where a proponent submits a SINGLE project in the ACE territory. Please see FAQ-235 for additional information if a proponent is submitting more than one project in the ACE territory.



    08/04/2011 in Evaluation of Proposals

  • FAQ-233:
    I understand there is a 2 MW eligibility cap for participation in the SREC-Based Financing Program. I further understand that the 20% developer cap will be applied to projects in the ACE service territory. Because my project is located in ACE's service territory, must I limit project size to approx 1.4 MW (i.e., 20% of the planned quantity for ACE in RPS Year 2012) in order to maintain eligibility for participation in the SREC Based Financing Program?

    The maximum system size for a Project in ACE's territory for this 2012 RPS Reporting Year is 1,978.674 kW. All projects that have a size that exceeds this maximum will automatically be rejected.
     

    The planned quantity for ACE is 6,925.359 kW. This maximum size ensures that the size of the Project (1,978.674) does not exceed 20% of the planned quantity (1385.072 kW) by more than 30% of the system (593.602 kW). 



    06/08/2011 in Requirements for Proposals

  • FAQ-231:
    The announcement regarding the bid results of the sixth solicitation dated April 4, 2011 implies that the average price was about $400 per SREC. Does that mean I could expect to receive about 10 years * 19 SRECs/year * $400 / SREC = $76,000 if I were accepted in the upcoming solicitation?

    Your calculation is accurate for a price of $400/SREC and a production of 19 SRECs per year. 
     
    As you note, while $400/SREC was approximately the average price in the sixth solicitation; this does not mean that such a price will result in an award in the upcoming solicitation for any given EDC territory.   Further, we would also note that payments are made quarterly on the basis of the SRECs actually generated by the Project and transferred to the EDC over the term of the SREC PSA. The term of the SREC PSA, which is specified in the bid, can be from 10 to 15 years. 


    06/08/2011 in Requirements for Proposals

  • FAQ-230:
    What are the rules surrounding changes in system size for projects that received an award in the first five rounds of the SREC Based Financing Program (for example a project awarded in the August 2010 solicitation)? Section 5.2.12 of the RFP Rules for the February 2011 solicitation (Round 6) addresses this point, but the same provision is not found in the RFP Rules of prior solicitations.

    Please see Paragraph 5.2.12 of the RFP Rules that provide the details of changes in Project size. These details are as follows.

    After execution of the SREC Purchase and Sale Agreement (""SREC PSA""), the Owner may request that the EDC approve a modification in the size (kW) of the actual constructed Project (compared to the size provided in the Proposal) of up to 10%. The EDC will approve such a modification provided that the Project continues to satisfy all other requirements related to this Program and that this modification: (a) does not change the segment to which the Project belongs; (b) does not cause the Developer Cap to be exceeded; and (c) does not cause the Project to exceed 2 MW.
     
    The Board noted administrative changes to the Program in its Order dated January 3, 2011 approving the results of the fifth solicitation. The Board stated that these changes would be implemented for the sixth solicitation under the Program. Consequently, Owners of Projects that received an award in the sixth solicitation or later (with results approved on March 31, 2011 or later) may request a modification to the size of the actual constructed Project from the EDC with which it entered in the SREC PSA in accordance with the rules above.


    06/08/2011 in General

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