Frequently Asked Questions

1.	Q.	What is the Solar Set-Aside?
	A.	This program is a solar renewable energy credit (SREC) procurement program, specifically for solar aggregators.  Aggregators must use SRECs specifically generated from small scale solar installations in the PJM territory – 15 kW or less DC rating – and the facilities used must have entered operation on or after June 1, 2010.  This program operates in addition to the Long-term Solar RFP and the AEC RFP's, which are open to any participates that meet the qualifications set in each of those program.
2.	Q.	How many solicitations will PPL Electric be conducting and for what contract term lengths?
	A.	PPL Electric will be conducting three (3) solar set-aside offers, each with a separate contract term length.  Solicitation 1 has a 9-year contract term for 1,000 SRECs over the term, Solicitation 2 has an 8-year contract term for 1,100 SRECs over the term, and Solicitation 3 has a 7-year contract term for 1,600 SRECs over the term of the contract.
3.	Q.	When does SREC supply start for each of the products?
	A.	The supply for Solicitation 1 begins June 1, 2011; Solicitation 2 supply begins on June 1, 2012; and Solicitation 3 supply begins on June 1, 2013.
4.	Q.	When will the Solar Set-Aside program begin?
	A.	Each Solar Set-Aside solicitation will open the first Monday following the issuance of the corresponding weighted average price is posted for the Long-term Solar Solicitation.  According to the terms of the Long-term Solar RFP, following the bid date, the PA Public Utility Commission has 10 business days to review the results of the Long-term Solar RFP and issue an order either accepting or rejecting the bid results.  PPL Electric then has 14 days to post the average weighted price to the PPL Electric Default Service web site.  In the meantime, Aggregators can submit their Expression of Interest using the "Register" field found on the web site (here). For details on the Long-Term Solar RFP schedule, click here.
5.	Q.	How is the price set?
	A.	The SREC price for the Solar Set-Aside program is based upon the results of the corresponding Long-term Solar RFP.  Following the completion of the Long-term Solar RFP, PPL Electric will post the SREC average weighted price of that RFP.  This value is what will be paid per credit based upon the solicitation.
6.	Q.	What is required to be eligible to submit offers?
	A.	In order for suppliers to be eligible to participate in the Solar Set-Aside program they must first submit an Expression of Interest by registering online (here).  Following the submission, suppliers must show proof of being an Aggregator according to the PA PUC standards and rules (as found on the PA AEPS website - http://paaeps.com/credit/index.do) and must submit a fully completed, signed and executed Solar Set-Aside Supply Master Agreement (SA SMA) and Binding Offer Agreement.  Please reference the Solar Set-Aside Process and Rules document (here) for a comprehensive description of rules and responsibilities.
7.	Q.	Why does the supply date start before the offer date on June 18th, for Solicitation 1 of the Solar Set-Aside?  How does this work?
	A.	As you have highlighted in your question, in Section 2.3 of the Solar Set-Aside Process and Rules, the delivery period for Solicitation 1 of the Solar Set-Aside starts June 1, 2011 and concludes on May 31, 2020.  The Offer Date for Solicitation 1, as found in the Addendum to Section 3.1 (found here) of the Set Aside Process and Rules is to be held on June 18th, 2011. The Supply Master Agreement (SMA) has been set-up such that winning Aggregators under the Solar Set-Aside do not have monthly obligations during each annual period, from June 1 through May 31, but instead have a requirement to supply all credits due within 40 days following the conclusion of each annual period (see section 2.3(c) of the SMA).  Therefore, while the offer date infringes on the first annual period, it should not impact the Aggregators ability to meet their obligations under the contract.
8.	Q.	Can a homeowner independently bid into the PPL Electric Solar Set-Aside Program?
	A.	No, a home owner with a qualifying facility, as detailed in the Set-Aside Process and Rules document may not independently bid into the Solar Set-Aside Program.  All participants in the program must be deemed an Aggregator as defined by the PA Public Utility Commission (PUC), having completed all appropriate paper work and filings.  For information regarding the process and requirements, please reference the following PA PUC Alternative Energy Portfolio Standard (AEPS) web site found (here) and contact the administrator of the program.
9.	Q.	Where can an owner of a solar facility that meets the qualifications set out in the Solar Set-Aside Process and Rules find Aggregators to sell their credits to?
	A.	Owners of a qualifying facility, as found in the Solar Set-Aside Process and Rules document, may find qualifying Aggregators according to the Pennsylvania PUC standards on the PA PUC AEPS web site found (here).  This list is updated by the PA PUC, not PPL Electric, and is subject to change.
10.	Q.	Can a homeowner become an Aggregator?
	A.	The PA PUC is the sole entity responsible with the processing of Aggregator applications and other forms to become an Aggregator in Pennsylvania.  Please contact the administrator of the PA PUC AEPS program to determine the qualification requirements to become an Aggregator (found here).
11.	Q.	The Solar Set-Aside Process and Rules document states that offers must be submitted in multiples of 100 SRECs.  If I would like to submit more than a 100 SREC offer, do I need to submit separate offer sheets for each multiple of 100 SREC's, or can I submit one sheet for the full amount to be offered? For example, if I wanted to bid 200, do I need two offer sheets or just one for the full quantity?
	A.	To be specific, you are referencing Section 5.2 of the Solar Set-Aside Process and Rules, where offers must be in multiples of 100 SRECs, up to the target quantity for the solicitation.  Only one (1) offer sheet must be used which includes the full quantity of SRECs you wish to submit for consideration.  To use your example, if you wish to submit an offer for 200 SRECs, you must only submit one offer sheet for the full 200 SRECs.
12.	Q.	I was hoping to confirm that Monday's qualification deadline was exclusively for the long-term, large SREC RFP and did not include the small-scale solar set-aside program. I was also hoping to find out whether documents submitted for the small-scale solar set-aside before the qualification deadline is set would be held for review or if a new submission would be required.
	A.	The Qualifications Due Date of April 11, 2011 relates only to the SREC RFP and not to the small-scale solar set-aside program. In regards to the small-scale solar set-aside, information on the process has been released and posted to the “Small-Scale Solar Set-Aside” Section of the RFP Web site: click here.  Applicants may register through use of the registration link on the “Small-Scale Solar Set-Aside” page prior to the opening of the product; however, no action will be taken until the product has been opened, which is expected to occur in late May or early June, depending upon the results of the Long-Term Solar REC RFP.  Please submit any questions you may have about the Small-Scale Solar Set-Aside product through the Ask-A-Question link on the web site (here).
13.	Q.	You stated that information on the Small-Scale Solar Set Aside "will be posted to the “Small-Scale Solar Set-Aside” Section of the RFP Web site" and you anticipated this would happen by April 4th.  It is now several weeks after April 4th and just a couple weeks from when the set-aside sale will happen, but we are still unable to find the "Small-Scale Solar Set-Aside" section of your web site.  If I'm missing the information on your web site, can you please point me to it.  Thank you.
	A.	The “Small-Scale Solar Set-Aside” section of the RFP Web site is found on the lower right section of the main RFP welcome page (www.pplpolr.com). Supplier documents can be assessed by clicking on this link: click here. The RFP manager does not administer the “Small-Scale Solar Set-Aside” program and cannot answer questions related to that program. Please direct all questions related to that program using the dedicated “ask a question” page on the “Small-Scale Solar Set-Aside” section of the RFP Web site: click here.
14.	Q.	If I win a bid for 100 SRECs for the small scale solar set aside can I deliver all 100 in the first year?
	A.	No, SRECs awarded to Aggregators may not be supplied entirely in the first year. The June 22nd, 2011 Small-Scale Solar Set-Aside Solicitation is for 1,000 SRECs over 9 years (or approximately 110 SRECs per year).  According to the rules set out in the Solar Aggregator Supply Master Agreement, Section 2.3(c), winning Aggregators must conform to the Transaction Confirmation, which details the annual SREC obligation that must be supplied.  The specified amount listed in the Transaction Confirmation must be explicitly adhered to. To use your example, if an Aggregator was to offer and be selected to supply 100 SRECs, the Transaction Confirmation would require this Aggregator to supply approximately 11 SRECs per year over 9 years; not all 100 SRECs in the first year.  Aggregators may supply their annual obligations (in this case, 11 SRECs) over the course of the year, or all at once.  SRECs for future annual periods may not be submitted early.
15.	Q.	Am I reading this right? According to the documents, Aggregators are limited to a 10% administrative fee on a $150 per SREC RFP for 1,000 total SRECs over 9 years. Between the RFP, the generation entry and SREC management and the transactions, it is a lot of work for a total fee of $1,670 a year ($15 per SREC x 111 SRECs). Do you know what the total volume of the set-aside program will be in the next few years? Are Aggregators allowed to charge additional fees to the sellers? How do you monitor this?
	A.	Your interpretation of the Small-Scale Solar Set-Aside Rules is correct.  Aggregators are limited to an administrative fee of 10% per SREC. To use your example, if an Aggregator were to win all 1,000 SRECs in the first Small-Scale Solar Set-Aside solicitation, they may institute up to a 10% administrative charge, i.e.  $149 x 10% x 111 SREC/year = $1,654/year for 9 years, with a grand total of $14,885. PPL Electric is conducting three (3) Small-Scale Solar Set-Aside Solicitations over the next two years for the following quantities and terms: Solicitation 1: 1,000 SRECs/9 years; Solicitation 2: 1,100 SRECs/8 years; Solicitation 3: 1,600 SRECs/7 years. The 10% administrative fee was wrought from settlement proceedings between PPL Electric and the other involved parties when the Small-Scale Solar Set-Aside Rules and SMA were being developed and agreed upon. Aggregators are not allowed to charge additional fees according to the terms of the Solar Aggregator Supply Master Agreement (or SA SMA) and the Binding Offer Agreement (Appendix 4), which is signed and executed as a binding agreement by all winning Aggregators.