Degradation is not accounted for in the formula to calculate Expected Output (RECs). The Expected Output (RECs), column G, is used to calculate the Cost of Expected Output ($), column H. The sum of the Cost of Expected Output ($) across all of your Projects for which you submit a Bid cannot exceed the budget of $20,000,000. The formulas in the Bid Form are not subject to change.
For purposes of the REC Contract, the Maximum Contract Value, the maximum monetary amount that can be paid to Seller by Buyer, is calculated as the multiplicative product of: the Purchase Price and the result obtained by multiplying (i) the Proposed Nameplate Capacity in MW; (ii) the Standard Capacity Factor; (iii) 100% subscription rate; (iv) 8,760 hours; and (v) 15 years, then rounded down. This formula also does not account for degradation and Bidders may choose to take this calculation into account when determining their Bid for a Project.
The REC Contract is available on the Final Materials subpage here: