STATE OF DELAWAREPILOT PROGRAM

FOR THE PROCUREMENT OFSOLAR RENEWABLE ENERGY CREDITS

Results and Observations from the SREC Procurement Agent

KW Nameplate by Tier

Effective SRECs by Tier

Systems by Tier

Operational vs. Development – KW

Operational vs. Development – Effective SRECS

Total “stranded” operational annual effective SRECs across all tiers – 8,148

Operational vs. Development – Actual SRECS

Total “stranded” operational annual actual SRECs across all tiers – 7,551

Operational vs. Development – Number of Systems

Operational vs. Development – Effective SRECS

Only systems with both DE labor/equipment

Bid Results

Tier 2B Tier 3High $139.00 $176.00Low $120.00 $148.00Weighted Average $130.92 $154.45

Tier 1 Interconnect Dates

Interconnect Dates

• Tier 2A – 1 System 3/2011• Tier 2B – 3 Systems 6/2011, 1 System 1/2012• Tier 3 – 1 System 2/2011

Existing Effective SRECsDPL Will Purchase

(Compliance year beginning June 1, 2011)

Tier 1 Labor/Equipment SRECs Offered

Tier 2A Labor/Equipment SRECs Offered

Tier 2B Labor/Equipment SRECs Offered

Tier 3 Labor/Equipment

Existing/Proposed # Systems by Tier

Existing/Proposed Systems by KW

Existing/Proposed Systems by Effective SRECs

Tier 1 All Systems Bid vs. Nameplate

Tier 2A All Systems Bid vs. Nameplate

Tier 2B All Systems Bid vs. Nameplate

Tier 3 All Systems Bid vs. Nameplate

Histogram of Systems / Owner Representatives

Procurement Agent Observations

Program Strong Points•Parcel Requirement•Limit on a single system bidding in only one tier•Bid deposits – Significant gaming would have occurred without them.•Force Majeure section well written

Procurement Agent Observations

System Mechanics•Longer Open Period for Tier 1 and 2A, minimum 2 weeks.•Set additional week to allow receipt of bid deposits – would allow for ACH/check•Eliminate the Owner Representative requirement•Needlessly adds complexity•Owner Rep can still be an option•Firm fixed price contract

Procurement Agent Observations

Applications•Consider eliminating the following fields:

•Bid Deposit Form•Module Type – Info not used, confusing because changeable•Inverter Type – Info not used, confusing because changeable•Mounting Location – Info not used•First Year energy output – Redundant with SREC output•Other Supplemental Funding – Just need yes/no check

•Consider adding the following fields:•Bid Deposit Form

•Expected existing SRECs to sell•Expected commence date for proposed systems

•Transfer Agreement•Desired contract start date•Desired existing SRECs to sell

Procurement Agent Observations

Solicitation Design•Add verbiage to cover system additions•Clarify metering definitions•Reexamine production bands (min/max SRECs), current system incentivizes overly optimistic production estimates with no minimum and only 110% maximum•Clearly define other supplemental funding, i.e. does it include low interest loans, tax credits like NMTC?

Procurement Agent ObservationsSolicitation Design Cont.

•Partial Fills•Do we allow 110% production•Do we allow unfilled portion to bid in future solicitations

•Bidding partial systems that were not partial fills?

Procurement Agent ObservationsCommon Customer Comments/Complaints

•All existing systems should be eligible•No existing systems should be eligible•Bid deposit is too high, shouldn’t exist