2014 Delaware Procurement Program Solicitation Results in Surprisingly Higher Pricing than 2013

23 Jun 2014

On May 28, 2014, the results for the 2014 SRECDelaware Procurement Program were announced. This is the second year that the newly structured program has been in place; the Delaware Public Service Commission approved the new structure of the program in 2013, which implemented a competitive bid process for all tiers for the first 7 years of the contract and a set price of $50/SREC for the remaining 13 years of the contract. However, with the 2014 program, the set price for the remaining 13 years of the contract has decreased to $35/SREC. The 2012 Pilot Program that preceded the current Procurement Program differed in structure, with administratively set prices at $260/SREC for years 1-10 and $50/SREC for years 11-20 for projects under 250 kW and a competitive bidding process for anything larger. In 2013, the competitive Procurement Program resulted in lower SREC prices for successful bidders, as compared to the administratively set Pilot Program. In 2013, SRECDelaware also held a Spot Market Auction for owners of existing SREC’s generated since July 2009, which additionally produced low SREC prices.

 Unlike many competitively bid programs in other states, in 2014, the Procurement Program saw an increase in winning SREC bid prices, but not back up to the levels that projects would have received in the Pilot Program. For projects smaller than 30 kW, prices rose to an average contracted rate of $53.44/SREC for new systems (interconnection approval after April 12, 2013) and $53.44/SREC for existing systems (interconnection approval before April 12, 2013), increasing from $46.48/SREC and $34.59/SREC, respectively, in 2013. Pricing for existing projects above 30 kW also rose to an average contracted rate of $53.44/SREC, an increase from the 2013 rate of $39.29/SREC.  Finally, pricing for new projects between 30kW – 200 kW increased only $2.24/SREC and new projects between 200kW – 2 MW almost doubled increasing from $51.13/SREC in 2013 to $98.73/SREC.

2014 Delaware Procurement Program Results

table 1

2013 Delaware Procurement Program Results
table 2

2012 Delaware Procurement Program Results

table 3

Sol Systems will continue to track any further developments in regards to this Program and will inform our installer partners and customers with further information as necessary. Sol Systems currently offers our Sol Brokerage SREC solution for photovoltaic systems located in Delaware. Please email info@solsystemscompany.com for more information.

About Sol Systems
Sol Systems is a renewable energy finance firm that provides secure, sustainable investment opportunities to investor clients, and sophisticated project financing solutions to developers.  Founded in 2008, Sol Systems focuses on meeting the industry’s most critical solar financing needs, including tax structured investments, capital placement, debt financing, and SREC portfolio management. To date, the company has facilitated financing for thousands of distributed generation solar projects and hundreds of millions in investment on behalf of Fortune 100 corporations, utilities, banks, family offices, and individuals. For more information, please visit www.solsystems.com.

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Erica Nangeroni

Erica Nangeroni