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-119:
    Am I committed to building the Project if I submit a Pricing Proposal?

    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 Owner 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.

    All relevant documents can be found on the Documents page of the Web site.



    10/11/2010 in Purchase and Sale Agreement

  • FAQ-118:
    When can a Successful Proponent in the SREC-Based Financing Program request interconnection? The RFP Rules state that a Successful Proponent would not be able to do so until the Board Order on the results of the solicitation. Is that the date that the Order is issued or is it the date when the Board Order becomes final and no longer subject to appeal?

    A Proponent may request interconnection after the Board Order on the results of the solicitation has been issue.  The Board Order is issued typically within a few days of the Board renders a decision on the results of the RFP.  The calendar on the RFP Web site provides the date at which Board is expected to render its decision.  The Proponent is not required to wait until the Board Order becomes final.



    10/11/2010 in General

  • FAQ-117:
    The maximum Project size used to be 500 kW.  It is now 2,000 kW.  Can you confirm this?

    Yes.  The BPU Board Order dated January 3, 2011 changed the maximum Project size to 2,000 kW.  The Board Order can be found on the Documents page of the Web site.



    10/11/2010 in Requirements for Proposals

  • FAQ-116:
    Are payments for SRECs considered taxable income? Do the EDCs issue a 1099 for the value of SRECs?

    Please consult your tax advisor regarding any taxes that may apply to payments for SRECs sold as well as any tax credits or allowable expenses that may be available. We would assume that the revenue from selling SRECs must be reported to taxing authorities.

    The EDCs have not determined whether they will issue a 1099. The EDCs will, as part of normal business practices, make all required reports to tax authorities and obtain any taxpayer information required for that purpose.



    10/11/2010 in General

  • FAQ-115:
    If we submit a bid in advance of the deadline, can we then change our bid price if we resubmit the Pricing Proposal prior to the deadline?

    Yes. Please see Section 3.2.9 of the RFP Rules, which states, "A Bid Form submitted by a Proponent for a Project supersedes any previously submitted Bid Forms submitted by that Proponent for that Project. The Solicitation Manager evaluates only the last Bid Form for a Project submitted before the deadline that is complete and consistent with the requirements of Section 3.1." Thus you may change your bid amount for a Project by resubmitting a complete and consistent Bid Form with the new amount before the deadline.



    06/04/2010 in Evaluation of Proposals

  • FAQ-114:
    Do you include solar thermal (e.g., hot water system. space heating and cooling ) in your program?

    No. The New Jersey Board of Public Utilities limited this program to Solar Photovoltaic Systems that generate SRECs. Solar thermal systems are not part of the Program.



    06/04/2010 in Requirements for Proposals

  • FAQ-113:
    Is the SREC-Based Financing Program a loan program?

    The SREC-Based Financing Program ("Program") is not a loan program and does not provide payments specifically to offset the cost of the installation of solar panels. Rather, each EDC (ACE, JCP&L, and RECO) is contracting through this Program to purchase Solar Renewable Energy Certificates ("SRECs") from solar projects. This, in turn, provides a stable revenue stream to facilitate independent financing through loans or other financing mechanisms for renewable projects development and installation. Each EDC only contracts for the purchase of SRECs for the term of the SREC Purchase and Sale Agreement, and not for energy or capacity.



    06/04/2010 in General

  • FAQ-112:
    Does the SREC-Based Financing Program allow the EDC to enter into long term agreements with a locked in price for SRECs from a Project?

    Through the SREC-Based Financing Program ("Program"), each Electric Distribution Company ("EDC"), namely ACE, JCP&L, and RECO, is contracting to purchase solar Renewable Energy Certificates ("SRECs") from solar projects. The Owner of a project that receives an award under the Program enters into a standard contract, the SREC Purchase and Sale Agreement (“SREC PSA”). Under the 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. This stable revenue stream provided by the SREC PSA can facilitate independent financing through loans or other financing mechanisms for renewable projects development and installation. Each EDC only contracts for the purchase of SRECs for the term of the SREC Purchase and Sale Agreement, and not for energy or capacity associated with the Project.



    03/01/2010 in Purchase and Sale Agreement

  • FAQ-111:
    Do any of the EDCs provide incentives to offset the installation cost of solar panels?

    The SREC-Based Financing Program ("Program") is not a loan program and does not provide payments specifically to offset the cost of the installation of solar panels. Rather, each EDC (ACE, JCP&L, and RECO) is contracting through this Program to purchase solar Renewable Energy Certificates ("SRECs") from solar projects. This, in turn, provides a stable revenue stream to facilitate independent financing through loans or other financing mechanisms for renewable projects development and installation. Each EDC only contracts for the purchase of SRECs for the term of the SREC Purchase and Sale Agreement, and not for energy or capacity associated with the Project.



    02/26/2010 in General

  • FAQ-110:
    Will there be other solicitations after the current one?

    Generally, the SREC-Based Financing Program (“Program”) is expected to be available for three (3) years starting in the Fall of 2009 and concluding in the second quarter of 2012. In each RPS Reporting Year of the Program, the Solicitation Manager will conduct a maximum of three (3) solicitations. Each of the first two (2) solicitations in a given RPS Reporting Year will target to purchase approximately half of the planned quantity for that RPS Reporting Year. The third solicitation in an RPS Reporting Year will be conducted if the first two (2) solicitations do not procure the full planned quantity for the RPS Reporting Year.



    02/26/2010 in General

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