STATE OF DELAWARE
FOR THE PROCUREMENT OF
SOLAR RENEWABLE ENERGY CREDITS
The Delaware Pilot Program for the Procurement of Solar Renewable Energy Credits was designed by Delmarva Power and the Delaware Sustainable Energy Utility and was successfully piloted in 2012 utilizing a software platform developed by SRECTrade, Inc. The purpose of the program is to provide long-term SREC contracts for solar projects that are eligible to meet Delaware’s Renewable Portfolio Standard’s solar-carve out.
Both existing and proposed projects are eligible, however they must meet the following conditions:
- Existing projects – Must have an “Accepted Completed Solar System Interconnection Application” dated Dec 1, 2010 or later.
- Proposed projects – Must commence operation within 12 months of the award date.
- All projects – Must not have received supplemental funding from a public source, other than grants associated with the Delaware Green Energy Program (“GEP”) or grants in lieu of the investment tax credit.
The Pilot Program is broken into tiers based on system size as follows:
|Tier||Size (kW)||Number of SRECs/year||Percentage of Total SRECs|
|2a||50 – 250||2,000||9.1%|
|2b||250 – 500||2,000||9.1%|
|3||500 – 2,000||4,500||20.4%|
*The procurement of SRECs for Tier 4. for the 2011 compliance year was satisfied in full with the purchase of SRECs from the Dover Sun Park Project. Accordingly, the process for procuring SRECs from Tier 4 projects is not included in the initial pilot SREC Procurement Pilot Program.
Pricing is based on tier per the table below. Tier 1 and 2a will receive a fixed price, with systems that received a GEP grant under the program in effect prior to Dec 10, 2010 receiving a slightly lower Alternative payment. On the solicitation bid date, Tier 1 and 2a systems will be able to enter their systems into the solicitation. The online platform will accept applications for a minimum of 5 business days after the solicitation bid date, and if not fully subscribed after 5 days, it will remain open until it is fully subscribed. No preference is given to participants based on order of submission during the first 5 days; if the solicitation is oversubscribed the winning bidders are determined by a lottery with preferences given to systems that have claimed the Delaware Equipment Bonus and/or Delaware Workforce Bonus. The full details of this lottery are explained in further detail here.
Tier 2b and 3 systems will be subject to competitive pricing. All participants will enter fixed dollar amount bids for the first 10 years of the solicitation, and awards will be made to the projects with the lowest bids at their bid prices until the tranche is filled. The program is not obligated to award contracts to any bid above $280. Further details on the bid allocation process can be found here.
All contracts for all tiers will be 20 year standardized contracts with payments per the table below. Contract terms are not negotiable, and tier 2b and 3 bid prices must be the same for each of the first 10 years.
|Tier||Size (kW)||Years 1-10||Years 10-20|
|1||<50||$260/SREC Base, $235/SREC Alternative||$50|
|2a||50 – 250||$240/SREC Base, $175/SREC Alternative||$50|
|2b||250 – 500||Bid Price||$50|
|3||500 – 2,000||Bid Price||$50|
All bidders will be required to set up an account at www.srecdelaware.com and complete the Bid Application to participate in the Solicitation. Proposed systems are required to submit a bid deposit equal to $100/kW (DC) of the nameplate rating of the system before their bid is valid. This deposit will be returned upon proof of successful completion of the project within the 1 year allowable window, or upon completion of the Solicitation if their bid is unsuccessful. Existing systems are not required to pay a bid deposit.
Tier 3 projects will additionally be required to submit performance credit support in addition to a bid deposit. This will be in the form of cash or a letter of credit and will be in the amount of 5% of the value of the first year estimated SREC quantity. This performance credit support must remain in effect for the first 10 years after the system goes online, at which point the requirement will drop to 10% of the value of the estimated SREC quantity for the 11th year of the agreement. This requirement will remain in effect for the remaining 10 years of the contract.
BIDDER QUALIFICATIONS / AGENT REQUIREMENTS
Bids for systems with an aggregate nameplate rating of at least 100 kW must be submitted by an applicant that owns, leases, controls, or is the direct assignee of all SRECs created by that system.
Bids for systems with an aggregate nameplate rating of less than 100 kW must be submitted by an applicant that owns, leases, controls, or is the direct assignee of all SRECs created by that system AND at least one other system. This Owner Representative or a replacement must remain in place for the duration of the 20 year contract.
This requirement is designed to require smaller systems to make use of an agent, while larger systems can optionally use an agent or manage their system themselves. The program will be designed so that smaller systems who use an agent will have individual access to their facility within the agent account. Agents and/or owners may designate payment either direct to the owner or to be passed through the agent.
TABLE OF CONTENTS
PREFACE: Application for Approval
2.2 Banking of SRECs
2.3 Bonus for Use of In-State Equipment or Workforce
4.1 Public Solicitations
4.2 Owner Qualifications
4.3 Eligible Projects
4.4 Ongoing Program Evaluation
5.1 General Requirements
5.2 Estimated Output
5.3 Bid Deposit
6.1 Term of Agreement
6.2 SREC Quantity
6.4 Utility Interconnections
6.5 Guaranteed On-Line Date; Delay Liquidated Damages
6.8 Conditions Precedent
6.9 Performance Credit Support
6.10 Project Maintenance; Inspections
6.11 Excused Performance
6.12 Default Provisions
6.14 Replacement of Owner Representative
7.1 Tier 1 and Tier 2-A Solicitations
7.2 Tier 2-B and Tier 3 Solicitations
7.3 Reduction in Capacity
8.1 Resource Allocation
*Note these forms are for informational purposes only – the actual forms will be completed online.