The CC Authorization Form, Performance Calls and Collateral

Overview This blog post provides more context and information regarding the Credit Card Authorization form requirement, as well as how it relates to SREC delivery, collateral, and performance calls. Background The 5% collateral associated with your SREC contract is held by the contracting utility. This is the utility that receives your SRECs, and makes SREC payments to you. Carbon Solutions buys SRECs from you and sells them to that utility. The 5% collateral must be maintained at that level for the term of the contract. As part of Carbon Solutions agreement with the utility, if SRECs are not delivered as contracted, the utility will draw on the 5% collateral at the contracted SREC price for however many SRECs are not delivered. The utility will then charge Carbon Solutions for the undelivered SREC(s).Due to the nature of the up-front payment, this payment is passed on to you. This is called a “Performance Call”. In practice, the utility will review SREC delivery after 36 months and compare the contracted amount with the amount delivered, based on the 36 month moving average of SREC delivery. After the first review, the utility will review annually thereafter until the contract ends. Example: 150 SRECs on the contract, 10 SREC per year, flat. Through the first three years your system delivered 10, 10 and 9 SRECs. So 29 SRECs are delivered of the 30 SRECs contracted. The utility will draw on the collateral for the amount of 1 SREC, and charge Carbon Solutions. In this example Carbon Solutions would invoice you for the same amount and provide five days notice before the card on file is charged....

What is a REC?

A REC is equal to 1 MWH of electricity generated by a renewable source. RECs are minted and transacted on “REC Tracking Systems”. Different tracking systems cover different areas of the country. CSG serves as a generator, marketer, broker, and aggregator for RECs across the country. Please contact CSG if you want more info on selling your...

SREC Contract FAQ

Greetings, Please see your SREC contract at DocuSign.   If you are receiving this contract you should have already received, in order, the items below: 1. The Illinois ABP Brochure: http://illinoisabp.com/wp-content/uploads/2018/12/Brochurev2.pdf 2. The Consumer Disclosure form (signed and completed) for your system purchase – please be sure this is entirely accurate as it forms the basis for your project application and will require editing and re-signing in the event it is inaccurate. This will lead to a delay in your application processing time. 3. A system installation contract – signed and completed. Tips and Frequently Asked Questions Filling out the Contract Please fill out the Host Certification on the 3rd page. Section 1 is required, and then either Section 2 or Section 3 is required. Signing Section 2 indicates that you are the SREC counter-party and the project site owner. Section 3 indicates that you own the site and you must identify the host company or individual. Please review system specifications, particularly, the system size AC, DC, system address, number of SRECs and counterparty. Most fields on the contract are editable (phone, email, name, etc) if any trouble editing, or if a field is not editable, please reach out to SREC@carbonsolutionsgroup.com. See your non-refundable $10/kW AC application fee on Cover Sheet B. If you’ve paid this to your installer or it has been covered by your installer, a note will be made on this page. On Page 28 you will be asked to sign and there is a required section “By” – in this section please put your title (homeowner, owner, representative, etc.) Invoicing and Payment If any invoice...

ABP 5% Utility Collateral

One of the requirements for participation in the Illinois Adjustable Block Program (ABP) is the 5% Performance Collateral.  This is 5% of your total REC contract value that is held by the utility your system is contracted with (either ComEd or Ameren).  This 5% is withheld by the utility for the full 15 year period of the REC contract and is used to ensure that your system continues to operate as projected and generate RECS. If your system under-performs during any year in the 15 year period and fails to generate the RECs projected for that year the utility may “clawback” REC payments.  This means that you may have to pay the utility back for some RECS that were not generated.  The projected delivery schedule will be included in your REC contract and updated once the IPA has confirmed your systems participation and delivery schedule. If your system is energized when you apply for the ABP the 5% collateral can be withheld from your first REC payment.  If your system is not energized when you apply to the ABP the 5% collateral will be collected by CSG upon contracting and sent to the utility to hold for the duration of the 15 year period.   Example Calculation of 5% Collateral:   10kW AC Fixed-Tilt System using the Standard Capacity Factor Ameren Territory: $85.10/REC Total # of RECS on Contract = 216 Total Contract Value = $85.10 x 216 = $18,381.60 5% Collateral = $18,381.60 x 5% = $919.08   Please note some systems may have additional collateral withheld from the first REC payment by CSG if the capacity factor appears significantly...

Required Documents for IL ABP Participation Through CSG

Below is a list of the documents required to process your application for the Illinois Adjustable Block Program. Program Informational Brochure – Given out by installer and attached to CSG’s REC Contract ABP Program Disclosure Form – Must be signed before contract email comes from admin@illinoisabp.com (see example below) May be signed electronically by filling out link in email (see example below) CSG’s REC Contract – Sent via DocuSign CSG’s...