On May 1, 2013, the Delaware Procurement Program announced the final results for their 2013 program. The results show a significant decrease in the contracted price per SREC as compared to the 2012 Pilot Program’s pricing.
This year, the Delaware Public Service Commission approved a new structure for the program which resulted in a competitive bid process for all tiers. This differs from the structure of the 2012 Pilot Program, which included an administratively set price for projects under 250 kW and a competitive bid process for projects above that size. The set price was an attractive, guaranteed price of $260/SREC or $240/SREC for the first 10 years of the contract.
After the 2012 Pilot Program concluded, a Taskforce convened to analyze the results of this program and subsequently released a report to determine the structure for the 2013 Program. This report and analysis indicated a potential concern over the cost to the ratepayer if the participating utility, Delmarva Power, continued to enter into contracts at such high prices in subsequent years. Consequently, a competitive bid process was issued for the 2013 procurement to create more competitive and cost-effective pricing.
The competitive bidding process significantly brought down the prices of Delaware SRECs entering into the program. Specifically, projects under 200 kW, who would have received $260 or $240/SREC in the 2012 program, saw prices fall to an average contracted rate of $46.48/SREC for new systems (with final interconnection approval after April 2, 2012) and $34.59/SREC for existing systems (with final interconnection approval before April 2, 2012), only about $15 and $3 more than current spot market prices, respectively. Pricing for projects above 200 kW was reduced by as much as $114/SREC for existing projects and as much as $103/SREC for new system.
2013 Delaware Procurement Program Results
2012 Delaware Procurement Program Results
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 firstname.lastname@example.org for more information.
About Sol Systems
Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals.
For more information, please visit www.solsystemscompany.com.