Announcing the 2015 Delaware SREC Procurement

20 Apr 2015

Delaware's SREC Procurement Program bid is open through April 24th

Delaware’s SREC Procurement Program bid is open through April 24th

This year’s Delaware Solar Renewable Energy Credit (SREC) Procurement Program solicitation bid window opened on Monday, April 13th, 2015, and will remain open until Friday, April 24th at 5:00 pm. The Procurement Program gives new and existing Delaware-sited solar systems an opportunity to bid into a 20-year contract for their SRECs.

Winning bidders in each tier receive their competitive bid price (not a clearing price for the whole auction) for the first 10 years of the contract, and $35/SREC for the last 10 years. This 20-year fixed price contract offers an attractive alternative to selling credits on the sometimes unstable SREC market.

The goals of this year’s Procurement Program are consistent with the goals of past procurements: provide SREC price stability in the state, allow Delmarva another avenue by which to meet their long-term SREC compliance requirements, and encourage solar development in Delaware.

History of Delaware Procurement
The Delaware SREC Procurement Program first began in 2012 through a pilot meant to address the volatility of SREC markets. Systems applied in different tiers based on system size, and winning contracts were granted accordingly. Pricing was administratively set price for smaller systems, or, for larger systems, at the price they bid upon. The 2012 Pilot Program encouraged Delaware solar development by granting 10% SREC price bonus for systems that used Delaware parts or Delaware labor (or double if a system used both). Two mechanisms, tiered structuring by system size and the in-state bonus, have remained constant in all iterations of procurements. By distinguishing between different sized residential or commercial solar systems in terms of bidding tiers, this program model seeks to promote solar development regardless of market sector. The Delaware parts and labor bonus has continued to endorse solar companies working within the state (although solar modules are no longer manufactured in the state).

The 2013 Program and 2014 Program included several key distinctions from the Pilot Program. First, the tiered structuring began develop further by placing new systems and existing systems into separate bidding tiers. This change from the Pilot Program had the marked purpose of encouraging new solar systems to participate, without excluding existing systems that had not yet locked into long-term SREC contracts. Second, a competitive bidding process was implemented for all tiers. This improved upon the Pilot Program’s prior model of administratively setting prices for smaller systems because it offered ratepayers price protection without the need to change the state’s renewable portfolio standard (RPS). With a competitive bidding process, the lowest bids prices win contracts in each tier.

Administratively set pricing and/or winning bids have varied throughout the three year history of procurements. For new residential sized systems, winning bidders in the 2012 Pilot Program were rewarded with a substantial contract: $260/SREC for 10 years, and then $50/SREC after that. The competitive bidding process resulted in substantially lower weighted average prices for new residential sized systems, $46.48/SREC in 2013, and $53.44/SREC in 2014 for the first 7 years of a contract, with administratively set prices for the last 13 years. The full results of previous auctions, divided by tier, are posted on our blog.

First Half of Contract

Second Half of Contract

2012 Pilot Program

$260/SREC* for 10 years

$50/SREC for 10 years

2013 DE Procurement

$46.48/SREC* for 7 years

$50/SREC for 13 years

2014 DE Procurement

$53.44/SREC* for 7 years

$35/SREC for 13 years

2015 DE Procurement

?/SREC for 10 years

$35/SREC for 10 years

*Weighted average winning bid

This Year’s Program
Each year’s procurement continues to evolve from the last, and this year is no exception. While contracts in the 2015 Procurement will continue have 20 year terms, winning bidders will now receive their bid price for the first 10 years of the contract, and $35/SREC for the remaining 10 years, rather than the 7-year/13-year split from the 2013 and 2014 procurements. The 2015 Program continues to have tiers based on existing/new systems and system size, with a set number of SRECs to win bids in each. However, this year, after 9,000 SRECs have been acquired from the five tiers, Delmarva will be able to acquire up to 3,000 additional SRECs from any tier by choosing from the least expensive bids overall. Additionally no bids over $400/SREC will be accepted, in line with the Delaware Solar Alternative Compliance Payment of $400/MWh that Delmarva must pay if it is unable to meet compliance goals.

Five Tiers in the 2015 Solicitation

New Systems
(systems with final interconnection approval after May 5th, 2014)
Tier Nameplate Rating – (DC at STC) SRECs in Tier
N-1 Less than or equal to 30 kW 4,400*
N-2 Greater than 30 kW but less than or equal to 200 kW 2,300
N-3 Greater than 200 kW but less than or equal to 2 MW 2,300
Existing Systems
(systems with final interconnection approval before May 5th, 2014)
Tier Nameplate Rating – (DC at STC) SRECs in Tier
E-1 Less than or equal to 30 kW 4,400 Pool*
E-2 Greater than 30 kW but less than or equal to 2 MW 4,400 Pool*


Eligibility for this year is mostly consistent with past procurements. Any new or existing system with a Delaware certification number (or bid deposit) is eligible. Winning systems must have a revenue grade meter installed to qualify. Systems with SRECs currently under long-term contracts, including participants of the SEU SREC Upfront Purchase Program or systems that have achieved a successful bid in a previous procurement are ineligible to bid in this year’s procurement. For more information, or to apply, please visit SRECDelaware. Final Results of this year’s Program will be announced on April 29th. Sol Systems will continue to monitor developments with regard to the Delaware SREC Procurement Program and in other SREC market nationwide.


Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for 180MW solar projects on behalf of Fortune 100 corporations, insurance companies, utilities, banks, family offices, and individuals. Sol Systems provides secure, sustainable investment opportunities to investor clients, and sophisticated project financing solutions to developers. The company’s tailored financial services range from tax structured investments and project acquisition, to debt financing and SREC portfolio management. Inc. Magazine named Sol Systems on its annual Inc. 500 list of the nation’s fastest-growing private companies for a second consecutive year, ranking it No. 6 in the nation’s top solar companies in 2014. For more information, please visit

Print Page


Bridget Callahan

Bridget Callahan