DE SREC Procurement Program Overview Callin for this

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DE SREC Procurement Program Overview Call-in for this webinar is (917) 338 -1451 PIN:

DE SREC Procurement Program Overview Call-in for this webinar is (917) 338 -1451 PIN: 361734# Audio also available on your computer www. SRECDelaware. com [email protected] com (877) 466 -4606 x 100

Webinar Program • Basic Program Overview • Sample Facility Application • Questions and Answers

Webinar Program • Basic Program Overview • Sample Facility Application • Questions and Answers – All questions will be asked through the chat feature – Questions may be asked at any time, answers will be provided at the end of the presentation

Basic Requirements • Existing projects – Must have an “Accepted Completed Solar System Interconnection

Basic Requirements • Existing projects – Must have an “Accepted Completed Solar System Interconnection Application” dated Dec 1, 2010 or later. • Proposed projects – Must commence operation within 12 months of the award date. • All projects – Must not have received 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.

Timeline April 2 nd Solicitation opens – all tiers April 6 th or when

Timeline April 2 nd Solicitation opens – all tiers April 6 th or when filled Tier 1 & 2 A close April 13 th Tier 2 B & 3 close April 23 rd • Results announced for all tiers

Tiers Tier Size (k. W) Number of SRECs/year Percentage of Total SRECs 1 <50

Tiers Tier Size (k. W) Number of SRECs/year Percentage of Total SRECs 1 <50 2, 972 13. 4% 2 a 50 – 250 2, 000 9. 1% 2 b 250 – 500 2, 000 9. 1% 3 500 – 2, 000 4, 500 20. 4% 4* >2, 000 10, 600 48% *The procurement of SRECs for Tier 4. for the 2011 compliance year was satisfied in full with the purchase of SRECs from the Dover Sun Park Project. Accordingly, the process for procuring SRECs from Tier 4 projects is not included in the initial pilot SREC Procurement Pilot Program.

Tiers Tier Size (k. W) Number of SRECs/year Percentage of Total SRECs Systems less

Tiers Tier Size (k. W) Number of SRECs/year Percentage of Total SRECs Systems less than 250 kw can waive their right to an administratively set price and bid in Tier 2 b, but can’t bid twice. 2 b 250 – 500 2, 000 9. 1% 3 500 – 2, 000 4, 500 20. 4% 4* >2, 000 10, 600 48% *The procurement of SRECs for Tier 4. for the 2011 compliance year was satisfied in full with the purchase of SRECs from the Dover Sun Park Project. Accordingly, the process for procuring SRECs from Tier 4 projects is not included in the initial pilot SREC Procurement Pilot Program.

Pricing Tier Size (k. W) Years 1 -10 Years 10 -20 1 <50 $260/SREC

Pricing Tier Size (k. W) Years 1 -10 Years 10 -20 1 <50 $260/SREC Base, $235/SREC Alternative* $50 2 a 50 – 250 $240/SREC Base, $175/SREC Alternative* $50 2 b 250 – 500 Bid Price $50 3 500 – 2, 000 Bid Price $50 *projects that received a GEP grant before December 10, 2010

Award Process - Tier 1 and 2 A Not Filled by April 6 th?

Award Process - Tier 1 and 2 A Not Filled by April 6 th? Tier Filled On or Before April 6 th? • Tier remains open from April 2 nd, 8: 00 AM EST until filled, all bids accepted. • Tier remains open until April 6 th at 5: 00 PM EST. • All bids entered into lottery. Lottery Step 1 • All DE equipment & labor projects randomly sorted. • Start at top of random list until tier filled. Lottery Step 2 • If space remains after step 1, all DE equipment OR DE labor randomly sorted. • Start at top of random list until tier filled. Lottery Step 3 • If space remains after step 2, remaining projects randomly sorted. • Start at top of random list until tier filled.

Award Process - Tier 1 and 2 A There is no competitive advantage to

Award Process - Tier 1 and 2 A There is no competitive advantage to submitting Tier 1 and 2 A applications at 8: 01 on April 2 nd! Submitting applications earlier in the week does give bidder more time to resolve any issues with bid or receipt of bid deposit.

Award Process – Tier 2 B and 3 Bid Period April 13 th Highest

Award Process – Tier 2 B and 3 Bid Period April 13 th Highest Bid Oversubscribes? • Tier remains open from April 2 nd at 8: 00 AM EST to April 13 th at 5: 00 PM EST • All bids sorted by price • Highest bid given option to reduce quantity • If they decline, move to next higher bid Tied Highest Bid? • In case of bidding tie, all tied parties given 5 day period to reduce bid • If reduced bids produce winner, auction closes Highest Bid Still Tied • Projects sorted by DE equipment & labor, DE equipment OR labor, or neither • Random lottery starting with DE equipment & labor and moving down until filled

Application Requirements • Owner representative for all projects less than 100 kw • Bid

Application Requirements • Owner representative for all projects less than 100 kw • Bid deposit of $100/kw for projects not yet built - wire deposit, letter of credit, or bid bond. • Performance credit support for all Tier 3 projects – Years 1 -10, 5% of value of 1 st year SREC quantity – Years 11 -20, 10% of value of year 10 SREC quantity