Delaware launched a new SREC Pilot Procurement Program aimed at bringing stability and consistency to the Delaware SREC market.  After experiencing and acknowledging the potential for volatility in SREC markets, Delaware designed this SREC pilot procurement program to avoid and adjust for those failures in order to maintain a viable and stable market.  For any Delaware systems that qualify, this procurement program will provide them with a chance to lock into a fixed price for any SRECs their system produces over the course of the 20 year SREC contract.

Submission of Applications

Beginning on Monday, April 2, the program will be open for submissions from all facilities and will subsequently close either when the program is filled or on Friday, April 6 at 5:00pm EST.  All bidders must create an account and submit their applications through the Pilot Procurement Website (www.srecdelaware.com).  Application requirements vary depending on the system size and information on these applications is available here.  Systems that are less than 100kW must have an agent or aggregator as their Owner Representative in order to participate in the pilot procurement.  Systems that are greater than 100kW have the option to use an agent, similar to the smaller systems, but it is not required.

No preference is given to systems based on order of submission; however, if the solicitation is oversupplied, then the winning bidders will be determined based on a lottery with preferences given to systems that have claimed the Delaware Equipment Bonus and/or Delaware Workforce Bonus.

The Delaware Equipment Bonus provides a 10% credit to solar systems that have bought solar panels built by Delaware companies.  In addition, there is a similar 10% credit for systems installed by Delaware workers.

Who Qualifies?

Both existing facilities and proposed facilities are eligible; however, existing facilities must have an “Accepted Completed Solar System Interconnection Application” on or after December 1, 2010.

The program is then broken down into four (4) tiers based on system size, both for qualification and for pricing:

Tier Size (kW) Number of SRECs/year Percentage of Total SRECs
1 <50 2,972 13.4%
2a 50-250 2,000 9.1%
2b 250-500 2,000 9.1%
3 500-2,000 4,500 20.4%
4* >2,000 10,600 48%

*The procurement of Tier 4 SRECs for Compliance Year 2011 were procured in full from the Dover Sun Park project. (www.srecdelaware.com)

Pricing

Pricing for contracts will vary based on system size.  All contracts will be 20 year standardized contracts and contract terms are not negotiable.  Below you will see the pricing for each Tier:

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

For more information, please check out the SRECDelaware website.  Sol Systems will look to register all of our customers that qualify for this procurement.  Please reach out to the Sol Systems customer service team with any questions (info@solsystemscompany.com or (888) 235-1538).

About Sol Systems
Sol Systems is a solar energy finance and development firm that was built on the principle that solar energy should be an economically viable energy solution. With thousands of customers and hundreds of partners throughout the United States, Sol Systems is the largest and oldest SREC aggregator. We provide homeowners, businesses, solar installers, and developers with sophisticated financing solutions that help make solar energy more affordable. Sol Systems also helps energy suppliers and utilities manage and meet their solar RPS requirements efficiently by providing them with access to diverse portfolios of SRECs. For more information, please visit http://www.solsystemscompany.com.

Category