Under the Indexed REC Contract for the Fall 2023 Indexed REC RFP, the Delivery Year Requirements are greater than the Annual Quantity in the early Delivery Years, as the Indexed REC Contract accounts for degradation of the Project in the calculation of the Delivery Year Requirement. With respect to utility-scale solar projects and brownfield site photovoltaic projects, the Delivery Year Requirement for each Delivery Year will feature a degradation factor of 0.5% annually. The Delivery Year Requirement calculation is set forth in Section 1.30 of the Indexed REC Contract. The degradation adjustment described in the foregoing is only applicable to utility scale solar and brownfield site photovoltaic projects, not utility scale wind projects.

A 20-year schedule indicating the Delivery Year Requirement for each Delivery Year will be provided in the Product Order of the Indexed REC Contract for each winning project. Please note that while the Seller must deliver a quantity of RECs that meets the Delivery Year Requirement in each deliver year,  the failure to meet any Delivery Year Requirement through the first full Delivery Year (i.e., first full June through May period as well as any prior stub period) shall not constitute a Shortfall Amount. As described in Section 9.2 it is an event of default under the Indexed REC Contract if: (i) Seller fails to meet the Delivery Year Requirement for three (3) or more years, and (ii) the Shortfall Amounts (as the term is defined in the Indexed REC Contract) cumulatively equals or exceeds the annual quantity.