SREC Procurement Program

NOTE: The 2024 SREC Procurement Results were posted. The overall weighted average for the solicitation was $43.80 per SREC. 

Delaware Solar Renewable Energy Certificate (SREC) Procurement Program is designed to assist in the creation of a market for SRECs and to provide a mechanism for the procurement of SRECs to ensure that retail electricity suppliers meet the requirements set forth in Delaware's Renewable Energy Portfolio Standards Act (REPSA).

The program utilizes a public solicitation for SRECs for different tiers of solar generators based on capacity. The Sustainable Energy Utility (SEU), contracted with InClime, will administer all aspects of the bid process for each utility that decides to participate. Delmarva Power is the only participating utility at this time; therefore, the estimates for procurement are based Delmarva Power’s projected need for SRECs in compliance year.

• Systems are considered “New” for bidding purposes if they are not yet constructed or have an Interconnection Approval to Operate dated November 15, 2024, or later.

Project Eligibility

Project must be certified in DE to create SRECs and can be in the service territory of any utility in DE. SRECs created in previous energy years are not eligible for the auction. Proposed projects are required to begin operating within one year of the award date. Projects that certified using Delaware parts and labor qualify for additional 10% bonus for each category.

Program Tiers

Solicitation is divided into different tiers. The 2025 SREC Delaware Procurement is divided into tiers 1, 2, and 3. Each program tier has different applicable pricing, bid rules and other contract terms and conditions. Only one bid can be entered per location and rejected bids cannot be reallocated to other tiers. 

All system tiers are subject to competitive bid pricing. Tier 1 and 2 bids receive a pay-as-bid incentive for years 1-10 of operations and $10/SREC for years 11-25. Tier 3 bids receive a pay-as-bid incentive for the duration of their 5 year contract. 

History

In September 2011, Delmarva Power & Light filed an application with the Delaware Public Service Commission to seek approval of a pilot program for the procurement of SRECs. Through this application, Delmarva sought approval to implement a pilot program calling for the SEU to acquire, through an open procurement process, the SRECs needed for Delmarva Power to purchase its minimum number of SRECs for compliance year 2011 as set forth in state's RPS. Delmarva submitted a compliance filing for the State of Delaware Pilot Program for the Procurement of Solar Renewable Energy Credits in February 2012, as required by PSC Order No. 8093.

The 2012 pilot program created a multi-tiered solicitation for long-term SRECs that included multiple system sizes and customer classes under 20 year SREC purchase contracts. Standard offer contracts were awarded to systems less than 250 kW for years 1-10, with a rate of $50 per SREC for years 11-20. Systems 251 kW to 2 MW were subject to competitive bid pricing for years 1-10, with a rate of $50 per SREC for years 11-20. In April 2012, the SEU, contracting with SRECTrade, opened the first round of solicitations and awarded contracts to 166 solar PV systems totaling an estimated 7.7 MW of capacity. The 2014 solicitation reduced the SREC price from year 8 to 20 to $35 from $50.