RESPONSE:  PSE&G will make lease payments to the host at the rate of 4.5 cents per kwh of projected first year output, escalating each year by 2.5%, for a term of 20 years.  The projected output will be determined based upon the final as-built system parameters and the National Renewable Energy Laboratory’s (NREL’s) PVWatts calculator tool to determine the estimated energy production in AC kWhs for the first year.

Note that the actual lease payment by PSE&G to the host will be fixed (subject to the annual 2.5% escalation factor) and subject to the terms of the lease agreement will not vary with actual system output.  This approach does not preclude the project proposer from providing other additional financial considerations to the host.  Attached is the PSE&G Rooftop License Agreement.

2. Who does the rooftop installation?

RESPONSE:  PSE&G does not install the solar system.  PSE&G pays the solar developer for installing a turnkey system and PSE&G pays the Host Site a rental payment for the use of the site.  Host Sites and Solar Developers are asked to find each other and partner, proposing projects to us in this segment by emailing their proposals to Thirdpartysolar@pseg.com by December 11th, 2009.

3. What happens at the end of 20 years? 

RESPONSE:  At the end of the initial term of the site rental agreement (20 years) PSE&G will evaluate the condition of the solar system and for functional systems, PSE&G will confer with the site owner concerning reaching an appropriate agreement to allow the solar system to remain in place.

4. What level of documentation is required of Third Party roof hosts?

RESPONSE:  A memorandum of understanding or letter of intent is sufficient.

5. Do the land option agreements need to be in place prior to submitting a Proposal?

RESPONSE:  A memorandum of understanding or letter of intent is sufficient.  If this is referring to the lease agreement between PSE&G and the Host Site, the proposal needs to be submitted first.

6. Can some power be sold or consumed on-site? 

RESPONSE:  No.  PSE&G will own the solar systems and all the energy generated as well as all the renewable attributes associated with that energy because PSE&G is investing in this solar system.  The solar system will be directly connected into the PSE&G grid, therefore the Host Site will not be directly consuming any of this electricity.  This is not a net metering application.   

7. Who receives the tax credits?  Who owns the SRECs?

RESPONSE:  PSE&G receives the federal investment tax credit and PSE&G owns the SRECs (solar renewable energy credits). 

8. Are there any specific pre-approval or validation requirements for the solar integrators?  In the case of a new company, can solar industry experience of the EPC’s staff members from prior solar/EPC companies count in the evaluation?

RESPONSE:  Solar developers must demonstrate sufficient project experience and credit worthiness to satisfy PSE&G.  Each team and project will be evaluated on all merits as presented in your proposal.  Previous staff members’ experience with prior companies may be included as relevant. 

9. Can rooftop panels be temporarily moved to repair leaks? 

RESPONSE:  Yes, depending on the installation and racking, more or less modules may have to be temporarily removed to access areas needing repair.

10. Is there an anticipated date for project approval?

RESPONSE:  Open season ends December 11th, 2009.  PSE&G has not yet determined when project selections will be announced.

11. We would like to be a vendor to the EPCs in your program.  Will there be an opportunity to see which EPCs are interested?

RESPONSE:  There is no official channel to see this information prior to public announcement of the signed contracts.

12. What impact will Solar 4 All have on our electric rates?

RESPONSE:  PSE&G will receive federal tax credits and solar renewable energy credits, which will be used to offset the cost of the program to customers.  PSE&G estimates that this program will cost its average residential customer about 10 cents a month in the first year of the program.

13. Does PSE&G intend to develop any educational outreach programs as a result of this program?

RESPONSE:  As part of the Solar 4 All Program Segment 1C, PSE&G will implement an educational outreach program.  Program details are under development. 

14.  Will PSE&G place a higher value on projects which have access to a substation that connects to the transmission system?

RESPONSE:  Not necessarily.  Each project will be evaluated for its overall merit.  While a substation within proximity sounds attractive, it must be weighed within the context of all other factors contained in the proposal.

15.  The Additional Requirements Document indicates that PSE&G requires detailed engineering including stamped engineering drawings of all proposed designs.  Is PSE&G requesting this be submitted with the proposal, or provided for a successful proposal?

RESPONSE:  Stamped engineering drawings will be required before EPC contracts are signed, however need not be submitted for a successful proposal.  That being said, stamped drawings submitted with a proposal will add to the strength of a proposal.

16. Would consideration be given for a property located on the border of PSE&G’s service territory but physically located just outside of the PSE&G footprint?

RESPONSE:  In general, no.  The property should be physically located within PSE&G service territory as well as connected to our electric distribution system, otherwise it does not qualify for this program.  If your property has a PSE&G electric meter and therefore it is a PSE&G electric customer but happens to be physically located within another electric service territory, please contact PSE&G directly for a separate determination.

17. Will PSE&G accept sites in Mount Olive under JCP&L territory?

RESPONSE:  No.  The property must be physically located within our service territory as well as connected to our electric distribution system, otherwise it does not qualify for this program.  See also response to Question 16.

18. Do PA solar installations qualify for the Third Party Solar (segment 1B of Solar 4 All) program?

RESPONSE:  No.  The property must be physically located within our service territory as well as connected to our electric distribution system, otherwise it does not qualify for this program.  See also response to Question 16.

19. Are there any electric infrastructure constraints?  For example, a prospective site is located on a road, yet is completely wooded and within a quarter of a mile from the nearest building.  There may need to be updates to the electrical infrastructure.

RESPONSE:  No, PSE&G will consider all proposals submitted electronically to Thirdpartysolar@pseg.com.  PSE&G’s original intent behind this program as filed with the New Jersey Board of Public Utilities was to make use of brownfields and grayfields by installing solar systems on them, and the Board’s resulting order does not preclude this.  However, the cost for interconnection will impact the overall cost competitiveness of each proposal.

20. Please provide the link that lists the PV Installation vendors approved for your Solar 4 All program. 

RESPONSE:  PSE&G does not maintain a list of approved vendors for the Solar 4 All Segment 1B program.  PSE&G will review and consider the proposal of any vendor in this program.  If you would like to view a list of vendors, the New Jersey Board of Public Utilities does maintain a list on www.njcleanenergy.com/findavendor.

21. Can I solicit private property owners and residential owners to participate in Solar 4 All and charge a fee to PSE&G for getting you potential candidates?

RESPONSE:  It is highly unlikely residential owners would qualify for this program because the minimum size of a project is 500 kw (e.g. typically requiring 50,000 square feet of unobstructed and unshaded roof space).  Other than that, the idea is for Solar Developers and potential Host Sites to find each other and jointly make a proposal to PSE&G.  The compensation provided by PSE&G will be in the form of payment to the selected solar developer for installation of the turnkey solar project and payment to the selected Host Site in the form of rental payments.  There is no compensation paid for making proposals to the program.

22. We would like to do a story and video on this. 

RESPONSE:  Please contact our media relations representative Bonnie Sheppard at 973-430-6262.

23. Would you be making available publicly the type / manufacturer of the units that will be installed? 

RESPONSE:  There is no official channel to see this information prior to public announcement of the signed contracts and associated press release information which may contain the type and names of manufacturers of the units that will be installed.

24. Does the Proposer have any responsibility in submitting a Generator Interconnection Request to PJM / PSE&G for guiding the Project through the associated Interconnection process?  What is the role of the proposer in the Generator Interconnection process?

RESPONSE:  No, PSE&G is taking care of the PJM Interconnection process.  The Solar Developer and Host Site will be asked to provide certain documentation to PSE&G for the purposes of supporting PSE&G’s interconnection request to PJM.

25. What does “Scheduling” mean in the criteria in section 5.0 of the Instruction to Bidders?

RESPONSE:  PSE&G would like to see a detailed construction schedule with estimated milestone dates from the solar developer. 

26. Please clarify who is responsible for procuring the equipment between the PSE&G supplied step-up transformer and the point of connection to the grid.

RESPONSE:  PSE&G will provide the design and the equipment from and including the step-up transformer to the grid.  The issue seems to be that a previous version of the Design/ Build term sheet contained a contradiction to this.  Here is the clarification:  PSE&G is responsible for the work associated with interconnecting the Project using equipment supplied by PSE&G from the fence line of the Project to the appropriate interconnection point on the electric grid. 

The developer is responsible for providing the conduit and cable to the agreed-upon transformer location, attach the secondary cable to the transformer and get the municipal inspection approved.  PSE&G will procure and install the transformer, install cable to the primary side of the transformer including any poles, conduit, etc. to reach the transformer on the primary side.

27. Many inverter manufacturers are now supplying medium-voltage transformers integrated into their inverter system.  Is PSE&G willing to consider this?

RESPONSE:  Proposers should bid the project as specified but may also provide alternative price/design for the items below that we can review during bid evaluation.

28. PSE&G has requested equipment compliant with IEEE 1547, which is largely designed for the protection of systems interconnected behind-the-meter. This standard essentially requires inverter-based equipment to switch off due to any system excursion. Will PSE&G consider offers that include under/over voltage ride through, under/over frequency ride through, dynamic power factor control, and other features that would be beneficial to its system stability?

RESPONSE:  The requirement of inverter-based equipment to switch off due to any system excursion avoids the risk of islanding during certain fault conditions as well as eliminates the need for expensive system protection upgrades.  Solar Developers should bid the project as specified but may also provide alternative price/design(s) for PSE&G review and evaluation.

29. Is the Proposer to include an estimate of the cost to develop, engineer, design, procure, and construct the facilities between the Project and the PSE&G distribution system? 

RESPONSE:  The Project encompasses the run to the secondary bushings on the transformer so this should be included in the price.  The transformer location will be determined during the design phase of the project.  Solar Developers should bid the project as specified but may also provide alternative price/design(s) for PSE&G review and evaluation.

30. Should equipment warranty be in place as of the date that the Proposer receives the warranty, or is PSE&G looking for a warranty from the date the project is turned over to them?

RESPONSE:  The warranty terms as described in item 17 of the Design/Build Term sheet should be in place at Substantial Completion of the project.  The terms are 20 years for the solar panels and 5 years for balance of major equipment and installation workmanship.

31. Upon transfer of title to property, how is the PSE&G lease affected? 

RESPONSE:  The rooftop license agreement between the Host Site and PSE&G is for a term of 20 years.  Any transfer of title would be subject to the lease.

32. Can the lease be terminated?  By either party? 

RESPONSE:  Absent a default from one party, the lease cannot be terminated by either party.