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.”

General

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FAQ-258:
The July 14, 2011 Board Order says there were 191 applications submitted totaling 40.4 MW for the sixth solicitation. Of these, 106 were approved for a capacity of 16.6 MW while 85 rejected for a capacity of 22.4 MW. The total of all projects accepted and rejected is 39 MW while the number of applications totals 40.4 MW. Why do these figures not agree?

This is because of the circuit constraints for ACE. When we report the capacity of the applications received, we report the sum of the project sizes for all applications. However, ACE determined that some of the circuits for the proposed projects were closed or constrained. The approved project quantities reflect the constrained sizes for the projects approved.

08/09/2011 in General
FAQ-255:
Could you please confirm that an interconnection application cannot be filed prior to the New Jersey Board of Public Utilities’ announcement of results, expected on October 26, 2011?

We confirm that to be eligible under the Program, the Owner must not request interconnection prior to the Board Order on the results of the solicitation. Currently the Board meeting to consider the results of this solicitation is expected on October 24 (this is a change from October 26) so that the Board Order on the results of the solicitation would be expected within a few days after that date.

The date of the Board meeting is subject to further change and is generally posted here.

08/09/2011 in General

FAQ-254:
It appears that only ten-year contracts were awarded in the June 2011 solicitation. Have fifteen-year contracts been discontinued?

No. If you submit a Pricing Proposal under the SREC-Based Financing Program ("Program"), you will be required to provide (i) a price per SREC; (ii) a number of years for the contract; (iii) the size of the Project; and (iv) the EDC territory in which the Project resides. The number of years for the contract (or "Duration") can be between 10 and 15 years. Please note that the Program does not require that you select 10 OR 15 years; rather, you may select 10, 11, 12, 13, 14, or 15 years. Please see section 3.1 of the RFP Rules available on the Documents page of our Web site.

The pricing results are quoted in terms of NPV and are converted for purposes of the information release into an average price for an illustrative ten-year contract. This does not mean that all Projects that received an award are for a duration of ten years.

The pricing results are quoted in terms of NPV because Projects are ranked according to NPV. The price is then converted to a given duration of 10 years because a given NPV can correspond to different $/SREC prices for different durations and different EDCs. For example, suppose that the NPV for a JCP&L Project is $2,649.75. The SREC prices for the different durations allowed under the Program are provided below:

NPV	Duration	Cumulative Factor	Price/SREC
$2,649.75	10 years	7.0660	$375/SREC
$2,649.75	11 years	7.5475	$351.08/SREC
$2,649.75	12 years	7.9980	$331.30/SREC
$2,649.75	13 years	8.4196	$314.71/SREC
$2,649.75	14 years	8.8141	$300.63/SREC
$2,649.75	15 years	9.1832	$288.54/SREC

The price per SREC is obtained by dividing the NPV by the Cumulative Factor (equivalently, the NPV is obtained by multiplying the price/SREC by the Cumulative Factor). The Cumulative Factors for each EDC are provided in Section 5.1 of the RFP Rules.

As you can see from this table, a given NPV can translate into different prices/SREC for different durations for a given EDC and thus when releasing pricing on a $/SREC basis a standardized 10-year duration is chosen to provide an apples to apples comparison. The cumulative factor used for purposes of the information release is 7.0713, which is a weighted average of the Cumulative Factors for the three EDCs

08/09/2011 in General

FAQ-252:
How many megawatts have been a.) contracted, and b.) built, through the SREC-Based Financing Program so far?

The Solicitation Manager does not have information about the MWs that have been built thus far through the Program and does not publish statistics on the amount that was contracted. We can nevertheless provide the following guidance.

Generally speaking, any quantity that was planned to be procured in a given RPS Reporting Year for an EDC but that was left unfilled was then added to the procurement goal of the subsequent RPS Reporting Year for that EDC. At the same time, any quantity associated with awards that failed to proceed to contract in a given RPS Reporting Year was also added to the procurement goal of the next RPS Reporting Year for an EDC. The planned quantities for a given RPS Reporting Year are provided in the RFP Rules (generally table 1), which are available on the Archive page of our Web site (under Document Archives). Information regarding the awards under the Program are released after each solicitation and available on the Announcements page; these information releases immediately follow and announce the Board decision on the solicitation results.

You may make various calculations on the basis of these data. For example, the difference between the procurement goal over the entire program and the awards for an EDC as of the end of a given RPS Reporting Year will represent the quantity left to be procured for the remaining RPS Reporting Years for that EDC. To the extent that the actual planned quantity for the remaining RPS Reporting Years in the RFP Rules is higher, the difference represents the quantity associated with awards that did not proceed to contract.

08/09/2011 in General

FAQ-251:
What is the overall megawatt procurement goal for the SREC-Based Financing Program?

The procurement goals for each of the years of the SREC-Based Financing Program ("Program") as well as the totals for the Program are provided in the table below:

	Quantity (MW)
RPS Reporting Year	JCP&L	ACE	RECO	Total
June 1, 2009 – May 31, 2010	23	10	2.267	35.267
June 1, 2010 – May 31, 2011	10	5	0.803	15.803
June 1, 2011 – May 31 2012	9	4	0.699	13.699
Total for Program	42	19	3.769	64.769

08/09/2011 in General

FAQ-249:
I am looking into solar electricity for my home in New York. Can I participate in the Program or do I have to live in New Jersey?

The SREC-Based Financing Program ("Program") is only available to New Jersey residents; Projects in New York or other states are not eligible to participate in the Program.

08/09/2011 in General
FAQ-248:
The response to FAQ-221 states that the SREC-Based Financing Program will terminate after the December 2, 2011 solicitation. Does this mean I can’t participate in the SREC-Based Financing Program if my solar power system is up and running after December 2, 2011?

No, the end of the SREC-Based Financing Program (“Program”) during 2011 does NOT mean that you must complete construction of your Project by the end of 2011 to be eligible to participate in the Program.

First, please note that there is only one solicitation (Round 8) confirmed to take place in 2011 under the Program. The schedule for this solicitation (Round 8) is posted to the Calendar page.

Expressions of Interest are due by 12PM on August 29, 2011; qualification materials and pricing proposals are due by 12 PM on September 2, 2011. There will only be an additional solicitation with pricing proposals due on December 2, 2011 if ACE and JCP&L do not receive a sufficient number of competitive proposals in this current solicitation to fill the remaining capacity planned under the Program.

Second, please note that the Program is intended for "new" Projects. A Project is "new" and eligible under the Program if:
- the Project has completed the Initial Application process under the Renewable Energy Incentive Program ("REIP") or the SREC Registration Program ("SRP") administered by the Board of Public Utilities; and
- the Project is not yet interconnected and the Owner commits not to request interconnection prior to the Board Order on the results of the solicitation.
Thus, construction for the Project need NOT be completed in 2011. However, to submit a Proposal under the Program, you must have completed the Initial Application process under the SRP or the REIP administered by New Jersey’s Clean Energy Program. If you do not already have an SRP or REIP number, you must submit a complete SRP Registration Packet to the Office of Clean Energy no later than August 15 at 4PM EST to enable the Office of Clean Energy to issue an NJCEP Application Number in time for this upcoming solicitation. Instructions for submitting a complete SRP Registration Packet to NJCEP are provided in our announcement of August 3, 2011.

08/09/2011 in General
FAQ-247:
Are SRECs in danger of dropping in value due to an oversupply of solar projects?

Information regarding the awards under the Program, including the lowest and average accepted prices, are released after each solicitation and available on the Announcements page. These information releases immediately follow and announce the Board decision on the solicitation results. Although past prices may not be indicative of future prices, these information releases provide all publicly available information regarding prices under the Program.

There may be other publicly available information regarding SREC prices and it is beyond the scope of our role as Solicitation Manager of the Program to provide a comprehensive list of such sources. However, we do note for your convenience that the New Jersey Office of Clean Energy provides various updates on prices and installed capacity on a regular basis. The information is available here.

08/09/2011 in General
FAQ-246:
What is the timeline for the next solicitation of the SREC-Based Financing Program?

The schedule for the current solicitation (Round 8) is posted to the RFP Website.

Expressions of Interest are due by 12PM on August 29, 2011; qualification materials and pricing proposals are due by 12 PM on September 2, 2011. Proponents are notified if they have received an award after the Board meeting to consider the solicitation results, expected to occur on October 26, 2011.

Please note that to qualify to bid, solar projects must provide an NJCEP Application Number, which is obtained by successfully completing the Initial Application process under the SREC Registration Program (“SRP”) or the Renewable Energy Incentive Program (“REIP”), administered by New Jersey’s Clean Energy Program. To enable the Office of Clean Energy to issue an NJCEP Application Number in time for this upcoming solicitation, you must submit a complete SRP Registration Packet to NJCEP no later than August 15 at 4PM EST.

Instructions for submitting a complete SRP Registration Packet to NJCEP are as follows:

-- Include a simple cover letter with your SRP Registration Packet noting the project is intended for participation in the SREC-Based Financing Program solicitation.

-- The cover letter must be the first page of packet. If there is no cover letter, NJCEP will assume the project is not intended for the solicitation.

If you have submitted an SRP Registration packet that that is pending approval, you must submit a cover letter to let NJCEP know you have already submitted a registration for the solicitation (please include customer/system owner information in the cover letter).

Please direct all questions regarding the SRP directly to NJCEP: 1-866-NJSMART. Information and links for the SRP can be found here.

08/09/2011 in General
FAQ-245:
Is the $0.50/Watt rebate still available for the September 2011 solicitation of the SREC-Based Financing Program?

The EDC Solar Financing Incentive ("ESFI") has been discontinued. More information can be found here.

08/08/2011 in General

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