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-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-216:
    Under the SREC PSA, can the Owner of the Project assign the revenues to a third party as repayment for a loan?

    Please see Section I (the letter i) of the General Terms and Conditions (Appendix A to the SREC PSA). This section specifically allows for assignment for financing purposes without prior consent from the EDC.



    05/26/2011 in Purchase and Sale Agreement

  • FAQ-213:
    Is a change in location permissible under the terms of the SREC PSA?

    A change in location of the Project (to a different address and to a different customer account) is not permissible under the terms of the SREC PSA. The SREC PSA specifies in "Background, Section D" that the purchaser has agreed to purchase and the seller agreed to sell SRECs "generated by the Seller's Project". The Seller's Project is as specified in Appendix B. Appendix B is a "Description of Seller's Project, Specification of Location of Seller's Project and Details Regarding the Size, Type, Manufacturer, and Related Details Regarding the Qualified Solar Photovoltaic Generating Unit." This precludes moving the location of the Project or changing the details that are specified in Appendix B once the SREC PSA is signed. The Agreement to buy SRECs is tied to the Seller's Project as described in Appendix B and does not apply if the Seller's Project is no longer as described in Appendix B. Please note further that the information to complete Appendix B is provided as part of the Qualification Materials submitted with the Proposal; when bids are evaluated, the EDCs ensure that there are no circuit issues and the location of the project is feasible as planned. This assumes that the project location will remain the same through the term of the SREC PSA.



    05/26/2011 in Purchase and Sale Agreement

  • FAQ-212:
    Is the SREC-Based Financing Program a voluntary alternative to selling SRECs on the open market?

    Participation in the SREC-Based Financing Program is voluntary. You may build a solar facility and sell SRECs in the open market if you desire.

    05/26/2011 in Purchase and Sale Agreement

  • FAQ-192:
    I received an award in the June 2010 Solicitation but was not able to move forward at that time. What are my options now that substantial time has passed since the granting of the 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 the Owner of a Successful Project does not enter into the SREC PSA within the expected timeframe, the Owner has failed to uphold a commitment made in the Qualification Materials, and the Owner will lose the cash deposit that was due fourteen (14) days after the New Jersey Board of Public Utilities' approval of the awards for the solicitation.

    The Owner of a Successful Project has the option to re-submit a Proposal for the same Successful Project in a future solicitation under the following conditions. The Owner may re-submit a Proposal for the same Successful Project at the same or at the lower price; in that case, the Owner should ask the Solicitation Manager to specify the documents that will be required to have the Project re-considered. The Owner may not re-submit a Proposal at a higher price for the same Successful Project unless: (a) the Owner of the Project provided the cash deposit for the Successful Project in the previous solicitation within the timeframe specified in Paragraph ‎1.2.20; AND (b) the period between the submission of Pricing Proposals is no less than six (6) months. Please note that a Project is the “same” Project as a previously Successful Project if the Projects are in the same location and have the same NJCEP Application Number.



    05/20/2011 in Purchase and Sale Agreement

  • FAQ-189:
    How will the price of the SRECs that I am selling to the EDC be determined?

    If your Project receives an award, the price that you will receive for each SREC over the term of the SREC Purchase and Sale Agreement is the price that you submitted in your Pricing Proposal.



    02/17/2011 in Purchase and Sale Agreement

  • FAQ-188:
    If the owner of the SREC PSA is a PPA provider and prior to installation the host decides they'd like to use a different PPA provider, is assignment of the SREC Purchase and Sale Agreement possible? And If so, what is the process for transferring ownership of the SREC PSA?

    We assume that by owner of the SREC Purchase and Sale Agreement ("SREC PSA") you are referring to the owner of the Project, who is also the signatory to the SREC PSA. We also assume that you are inquiring about the process for transfer of ownership once the Project has received an award and the Owner has fully executed the SREC PSA. In that case, assignments of the SREC PSA are possible as long as the conform with Section I of the SREC PSA. In particular, such assignments require the written consent of the EDC. Please see this section of the SREC PSA for further details.



    02/17/2011 in Purchase and Sale Agreement

  • FAQ-182:
    If my Project received and award in a prior solicitation, but I did not proceed to contract within the timeframe specified in the RFP Rules, can I still execute the SREC PSA at this time?

    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 the Owner of a Successful Project does not enter into the SREC PSA within the expected timeframe, the Owner has failed to uphold a commitment made in the Qualification Materials, and the Owner will lose the cash deposit that was due fourteen (14) days after the New Jersey Board of Public Utilities' approval of the awards for the solicitation.  

    The Owner of a Successful Project has the option to re-submit a Proposal for the same Successful Project in a future solicitation under the following conditions.  The Owner may re-submit a Proposal for the same Successful Project at the same or at the lower price; in that case, the Owner should ask the Solicitation Manager to specify the documents that will be required to have the Project re-considered.  The Owner may not re-submit a Proposal at a higher price for the same Successful Project unless:  (a) the Owner of the Project provided the cash deposit for the Successful Project in the previous solicitation within the timeframe specified in Paragraph ‎1.2.20; AND (b) the period between the submission of Pricing Proposals is no less than six (6) months.  Please note that a Project is the “same” Project as a previously Successful Project if the Projects are in the same location and have the same NJCEP Application Number.



    02/16/2011 in Purchase and Sale Agreement

  • FAQ-181:
    Section P.2 of the SREC PSA (on page A-9) states that the agreement must uphold a form of "rate treatment and cost recovery" for the purchaser that is no worse for the purchaser than was provided for as of the date hereof. If SREC market value were to fall below contracted price over the terms of this 10 year agreement, is it feasible that Purchaser shall have ability to terminate contract if the parties fail to obtain new terms of agreement during the commencement of good faith negotiations?

    A key premise of the stipulation establishing the SREC-Based Financing Program (“Program”) was that the EDCs recover all Program costs.  Revenues received from selling SRECs will defray a portion of these costs and the Board Order approving the stipulation and authorizing the Program establishes a RGGI rate rider that provides for the recovery of all costs not defrayed by SREC sales.  The contractual provision to which you refer would only come in to play in the event that the RGGI rate rider, or a similar mechanism, was not continued in a way that enabled the EDC to recover the costs under the Program.  Under the current regulatory framework, a decline in the SREC value in itself does not provide the ability to terminate the contract to the Purchaser. 



    02/16/2011 in Purchase and Sale Agreement

  • FAQ-179:
    Regarding FAQ-164, is there a specific form of assignment required, or would something along the lines of the following be sufficient to assign the proceeds? For good and valuable consideration, receipt of which is acknowledged, I (we) hereby assign, transfer and deliver to _________ (the “Assignee”), all rights of payment that I (we) have under the Solar Renewable Energy Certificate Purchase and Sale Agreement with [Jersey Central Power & Light Company]. Date of Agreement: Annual SREC Generation Capacity: IN WITNESS WHEREOF, the parties have executed this Agreement: [signatures of assignor and assignee]

    As noted in FAQ-164, the assignment of benefits under the SREC Purchase and Sale Agreement (“SREC PSA”) would occur after the Board has made the award to the Project, after the Board Order is no longer subject to appeal, and after the SREC PSA has been executed (in the mid-May 2011 timeframe for the current solicitation). We will transmit your proposed assignment language to the EDCs for their review. We will update this response as soon as we have additional information. 



    02/16/2011 in Purchase and Sale Agreement


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