Please see Section 4(d) of the Cover Sheet of the REC Contract, which states that: “any ongoing first-year payments …by a Subscriber do not exceed 50% of the expected first-year net metering value to be received by the Subscriber… and any ongoing participation payments over the entire term of a Subscriber’s Subscription agreement do not exceed 50% of the expected total net metering value over that same term.”
Under these provisions, ongoing subscription payments (on an annualized basis) by a customer cannot exceed 50% of expected first-year net metering value. This requirement applies to the first year of the REC Contract. This requirement also applies to an annual average for (i) the life of the customer’s subscription contract or (ii) in the case of a system share purchase, for 25 years. The following assumptions are used for purposes of these calculations (and for purposes of these calculations only):
- A standard annual production degradation rate of 0.5%;
- An annual energy price escalation rate of up to 1.7%;
- The annual customer payment rate escalation cannot exceed the energy escalation rate;
- The first-year net metering value used in the savings calculation must be based on either (i) an average statewide supply rate of $0.06 per kilowatt-hour or (ii) an average of the customer’s 12 most recent monthly utility bills.