If a system does not generate as many RECs as calculated by the standard capacity factor is the Bidder penalized for not meeting the 80% requirement under the applicable supplier contract?

The 80% requirement is not imposed on a system-by-system basis but rather is imposed on all the systems of a certain Size Class. A Bidder with Bids approved by the Commission as winning Bids must provide at least 80% of the quantity of RECs as calculated from the system size and the applicable standard capacity factor for each Product for a given Delivery Year (or, if there are less than 10% of the RECs under contract from a given Product, at least 80% of the aggregate quantity across both Products must be delivered). Failure to meet this requirement is considered a default under the terms of the applicable supplier contracts. Furthermore, the standard capacity factors used in the calculations are all similarly conservative in nature to the standard capacity factor that was used for the SPV procurement and is used here again for solar systems (14.38%).

Announcements

DG-20: If a system does not generate as many RECs as calculated by the standard capacity factor is the Bidder penalized for not meeting the 80% requirement under the applicable supplier contract?