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-159:
Is it correct that under Section J of the Purchase & Sale Agreement there is no remedy for default other than contract termination? Thus, if the EDC decides to default and terminate the contract, there is no recourse for the Seller? I'm not clear how it will facilitate financing since it appears the EDC can effectively stop performing under the contract at any time. Am I reading this correctly?
Your reading of this provision is incorrect.The EDC cannot default and terminate the contract. Under the SREC PSA, only the non-defaulting party is allowed to terminate the contract. If the EDC were to fail to pay, the seller could suspend performance. Should the EDC default, the seller's remedy is to enforce the EDC's obligation to make the payments agreed to under the contract. Please note that the EDC is a regulated entity and the contract will have been approved by the New Jersey Board of Public Utilities.
02/08/2011 in Purchase and Sale Agreement
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FAQ-158:
My system is installed and operating, but I have not received my approval under the SRP or receive my NJCEP number. Does it appear that I am interconnected? If so, does that mean that the project is no longer eligible under the SREC Based Financing Program?
It is not possible to make a complete determination on the basis of the facts you cite.What the Program specifies is that a Project must not be interconnected when the Proposal is submitted and that the bidder must not request interconnection prior to the Board Order on the results of the solicitation. Generally there are two steps to interconnection. The first step is the filing of an initial application that provides to the EDC the details of the system to be installed.A Project Owner may complete the first step and still be eligible for the Program.The second step occurs after the system is installed. At that point, an application for authorization to operate and permission to interconnect is filed. It is this second and last step that cannot be undertaken if the Project is to maintain eligibility for the Program. Please contact ACE so that you may make a definite determination of whether the Project is interconnected (i.e., whether the second step is complete).If it is interconnected, the Project is not eligible under the Program.
02/08/2011 in Requirements for Proposals
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FAQ-157:
I understand that the bidder must not request interconnection prior to the Board Order on the results of the solicitation. At what point may construction begin and how far can the construction go without violating program rules for eligibility.
The Program specifies only when construction must be completed and does not specify when construction may begin. Please see the SREC PSA, Appendix A, General Terms and Conditions, Paragraph 3. This Paragraph states that the EDC will have the right to terminate the SREC PSA if the Project is not fully constructed and able to deliver SRECs within one year of the execution of the SREC PSA. However, as you note, a project must not be interconnected when the Proposal is submitted and that the bidder must not request interconnection prior to the Board Order on the results of the solicitation. There are two steps to interconnection. The first step is the filing of an initial application that provides to the EDC the details of the system to be installed. The second step occurs after the system is installed. At that point, an application for authorization to operate and permission to interconnect is filed. It is this second and last step that cannot be undertaken if the Project is to maintain eligibility under the Program.
02/08/2011 in General
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FAQ-156:
Are there minimum credit requirements of the owner of the system or credit requirements of the system beneficiary under the SREC Based Financing Program?
There are no credit requirements under the Program. Please note that the SREC-Based Financing Program ("Program") is not a loan program. Rather, each Electric Distribution Company ("EDC"), namely 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 ("SREC PSA"), and not for energy or capacity associated with the Project.
06/08/2011 in Requirements for Proposals
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FAQ-155:
I understand that only "behind the meter" installations are considered in the SREC-Based Financing Program. Will a solar farm be eligible to participate in the program if there is an EDC meter that totalizes the energy generated by the system, and if the system is interconnected to PJM and the energy flowed back to the grid? If the system is not eligible, please advice on any necessary modifications in order to design a system that is eligible for this program?
The SREC-Based Financing Program is only open to projects that can qualify for net metering and to Owners that agree to net metering. Without being all inclusive, in order to qualify for net metering, the expected annual generation from the solar facility must be equal to or less than the anticipated annual consumption by an end user on the premise or behind the meter, with the meter being the revenue meter that the utility uses to measure electricity consumption by the end use customer. Hence if a solar facility was designed to produce 1000 MWH a year of energy, in order to qualify for net metering and the SREC Based Financing Program, it would be required to be connected to a customer that was anticipated to use at least 1000 MWH of energy a year. Your question seems to imply that the solar farm will not provide energy to an end-use customer but would consistently produce electricity that flowed off premises to the grid. This project is not eligible. The change you would need to make is to locate your facility on the premise of a customer who uses at least as much power in a year as the facility produces and directly connect the facility to that customer's load so that on a net basis, over the course of the year, energy would not flow to the grid.
02/08/2011 in General
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FAQ-154:
Can two individuals sign for the submission of the Proposal to the SREC-Based Financing Program?
Yes, two individuals can sign for the submission of the Proposal to the SREC-Based Financing Program. You may provide both signatures in the space provided or submit an extra page with the additional signature. For example, if two individuals are both Owners of the Project, and both Owners want to sign the certifications in Section 3 of the "Appendix 5 - certifications and Checklist", the two individuals could either: (a) submit three (3) originals and sign on the same page; or: (b) submit three (3) originals each, with each original bearing the signature of one individual.
02/04/2011 in General
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FAQ-153:
Regarding prior round results, please provide the average prices of the awarded projects by duration (i.e., for 10-year vs. 15-year contracts)?
The SREC-Based Financing Program requires that, after each solicitation, the average price and the lowest price among Projects that receive awards be released. No information is provided specifically by duration i.e., for a 10-year or for a 15-year contract. You can find the results information through the Announcements page of our Web site; the results were released as part of the announcement that the Board had approved the results of a round of bids. Alternatively, you may also consult the Board Order approving the results of a particular round of bids, which provide the results for that round. The Board Orders can be found on the Documents page of the Web site under the heading "Results and Board Approvals".
02/04/2011 in Purchase and Sale Agreement
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FAQ-152:
Where can I find a list of solar installers in New Jersey?
The New Jersey Board of Public Utilities maintains a list of active renewable installers and vendors and recommends that prospective applicants talk with at least three different vendors early in the project development stage. Please visit the following page for the list of solar installers: http://www.njcleanenergy.com/findavendor.
02/04/2011 in General
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FAQ-151:
The Project Proposal Summary Sheet calls for a description of the equipment, including the name of the manufacturer. Is this description binding?
The description of the equipment should be based on the best information available to the Proponent at the time that the Proposal is submitted to the SREC-Based Financing Program. If the Project receives an award under the Program, information from the Project Proposal Summary Sheet is used to prepare Appendix B to the SREC Purchase and Sale Agreement. The Owner of a Successful Project would provide to the EDC any updated information in the preparation of Appendix B with the understanding that any change in information would be non-material and would not affect in any way the Project's eligibility to participate in the Program or to receive an award. A substitution in the equipment for a similar item would likely be such a non-material change. Any such change should be provided to the EDC prior to the full execution of the SREC PSA.
02/04/2011 in Evaluation of Proposals
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FAQ-150:
What are the planned quantities for this upcoming round (Round 6)?
The planned quantities for this upcoming solicitation (Round 6) are the following:
JCP&L: 5,876.052 kW
ACE: 11,933.267 kW
RECO: 2,376.400 kW
The planned quantities total 20,185.719 kW.
01/27/2011 in General
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