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Reminder: Bids are due June 29 by 5PM ET

Please note all bids under Round 9 of the SREC-II Program are due June 29, 2018 by 5:00 PM Eastern Prevailing Time (EPT).  This is the last round of the SREC-II program, and correspondingly the final opportunity to secure a fixed price for SRECs over a 10-year period pursuant to an SREC Purchase and Sale Agreement with the participating New Jersey Electric Distribution Companies (JCP&L, ACE and RECO).

With the deadline approaching, and despite recent spot market price movements, we advise that parties provide the most competitive price possible to maximize chances of selection commensurate with the 10-year tenor of the SREC PSA.  Bid prices deemed non-competitive this round will not have a subsequent round to participate in under the SREC-II program.

We also highly advise all parties who have registered in our online application system to submit bid applications as early as possible. The online application system will automatically close to new submissions at 5:00 PM EPT on June 29.  In the event an applicant submits early and decides to make changes to a submission, please alert the Solicitation Manger. The application will be returned to the applicant for editing prior to the bid opportunity window closing. 

Upon submission, applicants will receive a confirmation notice with a full PDF of the submitted application.

Please contact the Solicitation Manager at njsolar@navigant.com with any questions.

Regards,

Solicitation Manager

0 comments on “NJ Solar Program”

NJ Solar Program

The NJ Solar SREC-II program awards 10-year fixed price SRECs selected through a competitive process. Over the past 3 years, the Program received bids for 45,815 kW of solar projects over 8 submission rounds. The Program awarded 36,176 kW of solar projects over this period, or nearly 80% of the power capacity bid. In terms of bid activity, the Program received 212 bids and awarded 139 bids across all segments, roughly 66% of bids.

This difference is a function of the competitiveness of bids within each segment – segments are divided into residential, commercial, and brownfield grid supply projects.  Bids in each segment are evaluated against different criteria, highlighted in the RFP, but on average large commercial projects have had the most consistent and successful results within the program. Originally, the program included a 2 MW cap for large commercial projects, but this has been lifted at the discretion of the Solicitation Manager.

Specifically, the average acceptance rate of Large Commercial bids – is 78.8%. The average acceptance rate of kWs bid in Residential and Small Commercial projects is 30% lower compared to Large Commercial, or 55.1%. Finally, brownfield grid supply projects have seen limited activity over the course of the Program, but 100% of kW bid in Round 6 were awarded. Although brownfield grid supply projects are typically more expensive per kW compared to greenfield grid supply projects, participants in the NJ Solar Program delivered competitive bids.

Finally, the NJ Solar Program is not immune to market pressures. Round 8 saw a sharp drop off in participation when compared to the previous rounds; rounds 1-7 averaged 28 bids; while Round 8 had 13 bids. This is a direct consequence of market conditions and specifically, unclear solar ITC timelines. In contrast, the Tax Cuts and Jobs Act of 2017 decreases the corporate income tax rate to 21%; we anticipate this will free up capital for project development.

The NJ Solar Program has been established for Atlantic City Electric Company, Jersey Central Power & Light Company, and Rockland Electric Company to successfully and periodically issue RFPs to select solar projects with which to enter into contracts for the purchase of SRECs at fixed price for ten (10) years. The program is solicited under three program segments, each of which have different parameters ; this information is available here. The program has been broken out into 8 solicitation rounds, with the 9th and final round of bids due June 29th, 2018 at 5:00 PM Eastern.

Bids are evaluated for completeness on a rolling basis through the June 29th deadline and applicants are encouraged to begin the process early to receive feedback on completeness before the June 29th deadline.

 

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Round 8 awards have been announced

Thank you for participating in Round 8 of the SREC-II Program.  At this time, all successful bidders in Round 8 have been notified. We would like to thank all who have participated in Round 8 of the SREC-II based financing program. The following is the summary of the result from Round 8:

Segment 1. Residential and Small Commercial (50 kW and below):

  • 4 bids were received, totaling 53.41 kW
  • 4 bids were rejected because the pricing was found not to be competitive

 

Segment 2. Residential & Small Commercial (Greater than 50 kW):

  • 9 bids were received, totaling 8,823.98kW
  • 9 bid awards were made, totaling 8,823.98 kW
  • The average accepted price per SREC in Segment 2 was $158.03

 

Segment 3. Subsection t. Landfills, Brownfields, or Areas of Historic Fill (Up to 5.2 MW):

  • No bids were received in this round.

 

We invite you to submit a price competitive bid in the upcoming, final solicitation round.