8.1 Resource Allocation

Based on forecasted load, the SREC solicitations for the 2011 compliance year will be for 11,472 SRECs,[21] which will be allocated as follows:

  • Tier 1 – 2,972 SRECs
  • Tier 2-A – 2,000 SRECs
  • Tier 2-B – 2,000 SRECs[22]
  • Tier 3 – 4,500 SRECs

8.2 Pricing

The Taskforce has established administratively set prices for Tier 1 and Tier 2-A projects for the 2011 solicitation that it believes will encourage development of new solar generating resources while taking into account reasonable project development costs (as such costs may be off-set by available grants, subsidies and tax benefits). The pricing set forth herein was established based on assumptions developed by the Taskforce and by utilizing PV Planner software.[23]

The administratively set prices established for the SREC Procurement Pilot Program are as follows:

PRICING

Project

Base Price

Alternate Price

 

Years 1-10

Years 11-20

Years 1-10

Years 11-20

Tier 1

$260 per SREC

$50 per SREC

$235 per SREC

$50 per SREC

Tier 2-A

$240 per SREC

$50 per SREC

$175 per SREC

$50 per SREC

[20] Owners of Tier 1 and Tier-2-A projects that have applied for, or are entitled to receive, GEP grants and desire to participate in a solicitation for Tier 2-B projects may elect to forego receipt of such grants in order to qualify to submit a price bid in such a competitive solicitation for Tier 2-B projects.

[21] In addition to the SRECs being solicited through the SREC Procurement Pilot Program, Delmarva has already contracted to purchase 9,846 Tier 4 SRECs from the Dover Sun Park Project, of which 2,846 are being utilized for the 2011 compliance year.

[22] The anticipated SREC supply from any Tier 1 and Tier 2-A projects selected in a solicitation for a Tier 2-B project will be counted as part of the Tier 2-B allocation.

[23] PV Planner software has been developed over a 16-year period by the Center for Energy and Environmental Policy in consultation with the U.S. National Renewable Energy Laboratory and others. It utilizes meteorological data to forecast PV cell output and incorporates a vast quantity of data to model financial performance of solar generation units.