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-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-42:
    How much refundable deposit is necessary? When is it due?

    Please see Section 5.2.8. of the RFP Document, which states, "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. The deposit will be returned, without interest, at the Commencement Date (as defined in the SREC PSA) or will be forfeited in accordance with General Term and Condition A.11 of the SREC PSA."

    The cash deposit is due 14 days after the approval of the bid by the New Jersey Board of Public Utilities. The deposit will be refunded on the Commencement Day without interest in accordance with the SREC Purchase and Sale Agreement ("SREC PSA"), found on the Documents page of the web site. This deposit is specified in the Stipulation and is approved by the Board.



    02/22/2010 in General

  • 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-39:
    If we fail to complete a project or fail to complete a project in a timely manner for which we have received an award under the Program due to factors outside of our control, will we lose the associated deposit?

    If you receive an award for a project under the SREC-Based Program (“Program”) and the project is not completed, you are subject to a forfeit of any deposit that has been posted, regardless of the reason.

    We understand that there may be uncertainty surrounding a Project that may be resolved over time. We note that the deposit is required fourteen days after the Board decision on the results of the solicitation. The RFP Calendar is available on the Calendar page of the web site. Please note that the scheduled date for the Board decision is not a certain date, but is an estimate based on the guidelines provided in the Stipulation.



    02/22/2010 in General

  • FAQ-37:
    My project is located in JCP&L territory. Can you explain the bid evaluation process?

    Please see the presentation entitled “SREC-Based Financing Program Update” under the Documents page of this web site for a review of the process for project selection. The Pricing Proposal must consist of a single price that will be paid for each SREC delivered to JCP&L (a sample bid form can be found on the Documents page of the web site). The pricing proposals will be ranked according to the net present value (“NPV”) of payments under the SREC Purchase and Sale Agreement (“SREC PSA”) for each annually delivered SREC. The SREC PSA can be found on the Documents page of the web site. The discount rate applied for JCP&L will be 6.87%. For a term of 10 years, the factor applied to the price of an SREC to determine the NPV is 7.0660. For example, if the price is $375, the NPV would be $2,650 ($375 x 7.0660). Terms of 10 to 15 years will be considered. The factors that would apply for terms of 11 to 15 years are: 7.5475, 7.9980, 8.4196, 8.8141, and 9.1832 respectively. Please note that in addition to ranking the pricing proposals using the NPV, the evaluation used by the Solicitation Manager will entail a 20% developer cap and an assessment of the competitiveness of the pricing. The Solicitation Manager may recommend that the full MW solicited not be awarded based on the competitiveness of the pricing.



    10/09/2010 in Requirements for Proposals

  • FAQ-36:
    How does the Solicitation Manager determine whether a bid is competitive?

    The determination of the competitiveness of bids is part of the evaluation process of the SREC-Based Financing Program ("Program") and is confidential. However, the Stipulation approved by the Board of Public Utilities ("Board") contains important details regarding the recommendation by the Solicitation Manager of whether the prices submitted are competitive. The Stipulation states, with respect to the evaluation of the competitiveness of the bids, that the Solicitation Manager receives input from the EDCs, Staff and Rate Counsel on a cap and that this cap will consider, among other things, the lowest SREC price bid, the SACP, and the distribution of SREC prices for all projects submitted. The Solicitation Manager submits its recommendations to the Board and the Board determines the awards under the Program.

    Please see section 7 and section 12 of the Stipulation, which describe this process in more detail. The Stipulation can be found on the Documents page of our web site, under the heading “Documents from the NJ CEP - Utility Financing Programs page”.



    02/22/2010 in Evaluation of Proposals

  • FAQ-35:
    We plan to install the equipment ourselves. Would this affect us negatively in competing for an award under the Program?

    Projects that are able to meet the eligibility requirements of the Program and for which all materials are submitted (including an Expression of Interest, a qualification package, and a Pricing Proposal) are ranked exclusively based on the Net Present Value ("NPV") of payments under the SREC Purchase and Sale Agreement ("SREC PSA"). We suggest that you consult our Program Guide for an overview, and then consult the RFP Document and the SREC PSA for a more detailed description of the requirements under the Program; all documents are available on the Documents page of our web site.



    02/22/2010 in General

  • FAQ-34:
    What are the RECO factors for determining Net Present Value?

    The RECO factors for determining the Net Present Value (“NPV”) of a RECO bid can be found in Table 4 of Section 5.1.4 of the RFP Rules. The RECO discount rate is 7.68%. The cumulative factors for 10, 11, 12, 13, 14 and 15 years are 6.8079, 7.2510, 7.6625, 8.0447, 8.3996, and 8.7292, respectively.



    02/22/2010 in Evaluation of Proposals

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