Note: The SREC procurement program will accept applications from March 25 to April 12, 2013. The summary below is intended to reflect the 2013 program as described in the Public Service Commission Staff Report and Order No. 8281. More information on bid requirements, the application process and payments amounts are available on the program web site.
The Delaware Solar Renewable Energy Certificate (SREC) Procurement Program is designed to assist in the creation of a market for SRECs and to provide a mechanism for the procurement of SRECs to ensure that retail electricity suppliers meet the requirements set forth in Delaware's Renewable Energy Portfolio Standards Act (REPSA). The 2013 SREC Procurement Program is designed to cover only one year, the 2013 compliance year.
The program utilizes a public solicitation for SRECs for different tiers of solar generators based on capacity. The Sustainable Energy Utility (SEU), contracted with SRECTrade, will administer all aspects of the bid process for each utility that decides to participate. Delmarva Power is the only participating utility at this time; therefore, the estimates for procurement are based Delmarva Power’s projected need for SRECs in compliance year 2013. Delmarva proposes to purchase 8,000 SRECs through the 2013 Procurement Program. The 2013 program will have three components:
- New Systems – 4,000 SRECs
- Existing Systems – 3,000 SRECs
- Spot Market Purchases – 1,000 SRECs
New systems are defined as having a final interconnection approval after the first date of the preceding auction process (i.e. April 2, 2012 for compliance year 2012). Existing systems are defined as having a final interconnection approval date before the first date of the preceding auction process (i.e. April 2, 2012 for compliance year 2012).
Existing projects must have an “Accepted Completed Solar System Interconnection Application” dated December 1, 2010, or later. Proposed projects are required to begin operating within one year of the award date. All projects are prohibited from receiving supplemental funding from a public source, other than grants associated with the Delaware Green Energy Program (“GEP”) or grants in lieu of the investment tax credit.
||Number of SRECs per year
||% of total SRECs
Each program tier will have different applicable pricing, bid rules and other contract terms and conditions. Applicants can submit an application for only one tier; however, under certain limitations the SEU may accept bids from a lower tier to fill the requirements of a higher tier.
All system tiers are subject to competitive bid pricing. There will be no administrative pricing for any tier, and grant amounts will not be considered in determining winning bids. All contracts have a 20-year term with payment amounts indicated below. All applicants must submit fixed dollar amount bids for the first 7 years, after which from years 8 to 20 a price of $50 per SREC will be paid out. Contract terms are non-negotiable.
In September 2011, Delmarva Power & Light filed an application with the Delaware Public Service Commission to seek approval of a pilot program for the procurement of SRECs. Through this application, Delmarva sought approval to implement a pilot program calling for the SEU to acquire, through an open procurement process, the SRECs needed for Delmarva Power to purchase its minimum number of SRECs for compliance year 2011 as set forth in state's RPS. Delmarva submitted a compliance filing for the State of Delaware Pilot Program for the Procurement of Solar Renewable Energy Credits in February 2012, as required by PSC Order No. 8093.
The 2012 pilot program created a multi-tiered solicitation for long-term SRECs that included multiple system sizes and customer classes under 20 year SREC purchase contracts. Standard offer contracts were awarded to systems less than 250 kW for years 1-10, with a preferential rate of $50 per SREC for years 11-20. Systems 251 kW to 2 MW were subject to competitive bid pricing for years 1-10, with a preferential rate of $50 per SREC for years 11-20. In April 2012, the SEU, contracting with SRECTrade, opened the first round of solicitations and awarded contracts to 166 solar PV systems totaling an estimated 7.7 MW of capacity.
A separate program -- Delaware Public Service Commission - Solar Renewable Energy Credits -- is available for customers of other utilities.