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

Go to Page:    1 (Newest)    2    3    4    5    6 (Oldest)    | << Back to FAQ Categories


  • FAQ-49:
    Is the discount rate used only to find the Net Present Value (“NPV”) and rank bids or does it also affect payments to Owners of Successful Projects?

    The discount rate is only used in the formula to calculate the factor used to determine the NPV.  The payment to the Seller under the SREC PSA is the price of the SREC submitted in the Pricing Proposal.



    02/22/2010 in Purchase and Sale Agreement

  • FAQ-45:
    If our system is under repair and cannot deliver the SRECs as stated in the SREC PSA for a particular month, will there be a make-up opportunity?

    There are no make-up opportunities under the SREC Purchase and Sale Agreement ("SREC PSA"). Please see Section 8 of the SREC PSA, which states that during each Contract Month, the Seller is paid for all SRECs that are produced by the Seller’s Project, if any, and transferred to the EDC. If no SRECs are transferred during a Contract Month due to technical or other problems with the installation, there is no payment to the Seller and no opportunity to make up the quantity of SRECs that would have been delivered had the Project been operational.



    02/22/2010 in Purchase and Sale Agreement

  • FAQ-44:
    Is there a commitment to sign the SREC Purchase and Sale Agreement (“SREC PSA”) as part of the Proposal? Are there any penalties for me if my project is selected for an award and I do not sign the SREC PSA?

    As part of the Qualification Materials, the Owner of the Project must certify 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 being given a Final Notice of Award by the EDC. The EDC provides this Final Notice to the EDC no earlier than forty-five (45) days after the date of service of the Board Order. There is no provision to release the Owner from its promise to execute the SREC PSA, regardless of the reason.

    If an Owner receives an award for a project, a cash deposit is due fourteen (14) days after the New Jersey Board of Public Utilities’ approval of the awards for the solicitation. The Owner is subject to a forfeit of any deposit it has posted if the Project is not completed.

    Finally, any Owner that received an award for a Project and that did not enter into the SREC PSA within the required timeframe will be unable to resubmit a Proposal for the same Project at a higher price unless: (a) the Owner of the Project provided the cash deposit for the Successful Project in the previous solicitation within the required timeframe; and (b) the period between the submission of Pricing Proposals is no less than six (6) months.



    03/01/2010 in Purchase and Sale Agreement

  • FAQ-43:
    Our Company is in the process of executing the SREC contracts. However, the listed signatory is unavailable to sign them. How do we proceed?

    For questions and issues regarding the execution of the SREC PSAs, please contact directly the EDC concerned. The Solicitation Manager will provide upon request by a Company having received an award under the Program the contact information for the execution of the contract with the relevant EDC.



    07/20/2010 in Purchase and Sale Agreement

  • FAQ-41:
    Do the EDCs have a “regulatory out” under the SREC Purchase and Sale Agreement (“SREC PSA”)?

    The SREC PSA, which can be found on the Documents page of the web site, is based on the assumption that the EDC will have the ability to recover the cost of the Program from its customers. Section P of the General Conditions defines the circumstances where there could be changes in the regulatory context under which the EDC may no longer have the ability to recover the cost of the Program and under which the SREC PSA may be modified or terminated.



    02/22/2010 in Purchase and Sale Agreement

  • FAQ-40:
    Are any payments received before the generation of SRECs?

    There is no payment to a winning bidder in advance of the generation of SRECs. Through the SREC-Based Financing Program (“Program”), each EDC is contracting solely to purchase Solar Renewable Energy Certificates (“SRECs”) from solar projects. If your bid is approved, the price that you get for all SRECs transferred to the EDC will be the price you bid.

    The EDC is not contracting to finance the project in any other way. In particular, the EDC is not contracting to provide financing during the construction phase, is not contracting for the energy or capacity associated with the solar project.



    02/22/2010 in Purchase and Sale Agreement

  • FAQ-13:
    The Appendix C (Host's Acknowledgement and Certification) reads "The undersigned is the owner of the Facility at which ____, the Seller named in the Solar Renewable Energy Certificate Purchase and Sale Agreement dated ____, 20__ with..." This form needs to be signed by the Host and submitted as part of the qualification materials. Can I confirm with you that I do not need to complete the date because the SREC Purchase and Sale Agreement (“SREC PSA”) will not have been signed when we submit the document?

    Yes, that is correct. Please submit Appendix C, leaving blank the dated portion of the following section: "... named in the Solar Renewable Energy Certificate Purchase and Sale Agreement dated ____, 20__ with...".

    The SREC PSA will be signed after the Seller is notified that the Board has approved the Seller's Pricing Proposal. According to Section 4.1.7. of the RFP Rules, "... if the Proponent becomes a Successful Proponent, the Owner of the Project will sign the SREC PSA within five (5) business days of being given a Final Notice of Award by the EDC (The EDC will give such notice no earlier than forty-five (45) days after the date of service of the Board Order, as further explained in Article 5)." The date can be filled when the SREC PSA is executed.



    02/22/2010 in Purchase and Sale Agreement

  • FAQ-12:
    Why is there such a long gap expected in the schedule between the announcement of the results and execution of the SREC Purchase and Sale Agreement (“SREC PSA”)?

    Once there has been an award, it is subject to appeal by parties in the proceeding. The gap is to ensure that the contract pursuant to the award is only signed once the Order from the BPU is final and no longer subject to appeal.



    02/22/2010 in Purchase and Sale Agreement

  • FAQ-11:
    Are any of the contract terms negotiable?

    No. The contract is approved by the New Jersey Board of Public Utilities and is not negotiable. All bidders would be signing the same contract. This SREC Purchase and Sale Agreement is posted to the Documents page of the web site.



    02/22/2010 in Purchase and Sale Agreement

  • FAQ-10:
    If a Project receives an award under your Program and an SREC Purchase and Sale Agreement is executed, can the applicant then transfer that award to a Power Purchase Agreement (“PPA”) provider, assuming the project will continue to be performed at the applicant's site?

    The SREC Purchase and Sale Agreement (“SREC PSA”) must be executed by the owner of the Project. The owner of the Project is directly responsible for all obligations under the terms of the SREC PSA and the owner of the Project will receive all payments under the SREC PSA. Please see Section I of the Terms and Conditions for 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. Such consent will not be unreasonably withheld.



    02/22/2010 in Purchase and Sale Agreement


Go to Page:    1 (Newest)    2    3    4    5    6 (Oldest)    << Back to FAQ Categories