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.”

Purchase and Sale Agreement

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  • FAQ-301:
    We received an award in the most recent solicitation, and we provided the wrong Owner name in our qualification materials. Can we change the name of the Owner in the SREC Purchase and Sale Agreement?


    Unfortunately, the name of the Owner and signatory to the SREC Purchase and Sale Agreement (“SREC PSA”) cannot be changed and must correspond to the information regarding the Owner provided in the qualification materials for the Project.  (We are assuming that the error that you mention is a change from say, Company X to Company Y, and not a typographical error such as changing "Geoge" to "George".)  The qualifications of the Project were assessed given the information provided, which includes the identity of the Owner of the Project, and the Project received an award from the Board on the basis of this information.  The Owner named in the Proposal is the only individual or entity that can execute the SREC PSA. 

    Once the SREC PSA is signed, the Owner of the Project may assign the SREC PSA under the terms of the contract.  Please see Section I of the Terms and Conditions of the SREC PSA, which provides the terms under which the SREC PSA may be assigned or transferred.  Such assignment or transfer 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.



    11/17/2011 in Purchase and Sale Agreement

  • FAQ-298:
    When will we receive the results for our bid in the September 2011 solicitation?


    At its agenda meeting of November 9, 2011 (instead of October 24 as previously scheduled), the Board rendered its decision regarding the results of the last solicitation (Round 8 with bids due on September 2).  All participants should now have received a notification regarding their Projects.  Please contact us (973 297 0880) if you have not received notification regarding your Project at this point.



    11/17/2011 in Purchase and Sale Agreement

  • 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-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

  • FAQ-272:
    If we sign the SREC Purchase and Sale Agreement (“SREC PSA”) for a project, how and when does the EDC pay money to us?

    Under the SREC Purchase and Sale Agreement ("SREC PSA"), the Owner receives the price it bid for each SREC generated by the Project and transferred to the EDC over the term of the contract. The term of the SREC PSA is specified in the bid and can be from 10 to 15 years. Payments for the transferred SRECs are made quarterly during the term of the contract. Thus, such payments begin after interconnection of the Project and after SRECs are transferred to the EDC.



    08/27/2011 in Purchase and Sale Agreement

  • 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-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

  • FAQ-244:
    Is there a penalty for withdrawing a Project from the SREC-Based Financing Program once it receives an award and prior to the execution of the SREC Purchase and Sale Agreement?

    There is no penalty for withdrawing from the Program prior to receiving an award. 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.



    08/08/2011 in Purchase and Sale Agreement

  • 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


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