The Delaware Public Service Commission (DE PSC) approved the Delaware Procurement Program’s 2013 solicitation on January 22, 2013. The 2013 Program for Procurement of Solar Renewable Energy Credits was developed by the Renewable Energy Taskforce on behalf of Delmarva Power & Light Company. Following the DE PSC’s approval, it was announced that applications will be accepted between March 25 and April 12, 2013, and winners will then be announced on April 19, 2013.
The program structure is slightly different from the 2012 Pilot Program, and will include separate tiers for new and existing systems, and a competitive bidding process for all tiers.
2013 Program Tiers
The 2013 Program will include 5 total tiers, as well as a spot market purchases tier for a limited number of SRECs. Three tiers will be designated for new systems and two tiers will be designated for existing systems. Each tier will then be categorized by nameplate capacity.
The 2013 program will procure a total of 7,000 SRECs, which equates to around 5.83 MW of projects, between the two tiers combined, in addition to 1,000 SRECs being procured as spot market purchases. The SEU, however, may, subject to certain limitations, accept bids from a lower tier to fill the requirements of a higher tier.
Competitive Bidding in All Tiers in the 2013 Program
Unlike the 2012 Pilot Program, smaller systems will not receive an administratively set price. Instead, all tiers will bid competitively to provide price protection to the ratepayers. The standard agreement for all systems will be 20 years, much like the 2012 Pilot Program. The first 7 years of the contract will be at the competitively bid and accepted SREC prices. The remaining 13 years will be fixed at $50 per SREC.
Sol Systems will continue to track the progress of the 2013 Program for Procurement of Solar Renewable Energy Credits and will inform our installer partners and customers shortly with further information on how Sol Systems can act as your Owner Representative.
If you have a commercial project that is being bid into the DE Procurement Program, and is looking for financing, please contact our team at firstname.lastname@example.org or (888) 235-1538 ext. 2. Our team would be happy to discuss your project with you and assess financing opportunities should you be awarded an SREC contract through the DE Procurement Program.
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.