We provide two examples of the calculations for the required amount for the Letter of Credit, strictly for illustrative purposes.

Example 1. A Bidder presents no identified systems and a total Forecast Quantity of 2,000 RECs. Since this is an annual quantity of RECs, to support the bids, the Letter of Credit must be in an amount of at least:

2,000 RECs x 5 contract years x $4 = $40,000.

Example 2. A Bidder presents a 1 MW solar photovoltaic system (fixed mount) in its Part 1 Proposal. The annual quantity of RECs associated with this system is:

Annual quantity of RECs = 1 MW x 0.1438 capacity factor x 8,760 hours/yr = 1,259.688 RECs

The result is rounded to the nearest REC, i.e., 1,260 RECs, and it represents an annual quantity of RECs. If the Bidder has multiple systems, the Bidder would calculate the number of RECs for each system and round the result for each system separately.

Since this is an annual quantity of RECs, to support the bids, the Letter of Credit must be in an amount of at least:

Required Letter of Credit amount = 1,260 RECs x 5 contract years x $4 = $25,200.