Calculation of out-of-pocket expenses for Small Generation Units
From 1 February 2011, all certificates created in the REC Registry must be accompanied by a calculation of the out-of-pocket expenses associated with the purchase, installation, and grid-connection of the SGU. This is regardless of the installation date of the unit.
The REC Registry will request this information during the STC creation process. The figure needs to be supplied as a single number - see below on how to calculate this number.
This requirement will be added to the REC Registry on 31 January, 2011. Updated bulk upload spreadsheets will be available at this time.
The requirement has been added to the STC Assignment Forms for immediate use (see links below).
In its simplest form, the calculation is:
Amount A - (minus) Amount E = Out Of Pocket Expenses Amount (OE).
Amount A is the complete cost of the SGU to the owner (for eg, the householder on whose roof a PV system is installed). This includes the cost of purchasing, installing, and connecting the unit to the grid, including the cost of all associated equipment and services.
Amount E is all monies received by the owner and assigned to the Agent, related to the installation of that SGU. This includes the value of the STCs associated with the SGU (including the Solar Credits multiplier) and any local, State or Federal rebates supplied as a result of the installation.
The complete equation can be viewed in the out-of-pocket expenses section. It may be required where you (as an Agent) supply additional free or discounted non-SGU goods or services to the owner, or where the owner makes additional payments to an Agent, not related to the SGU itself. This page contains complete descriptions and examples to help with accurately calculating the out-of-pocket expenses.
You must retain all relevant paperwork to justify the supplied figure. ORER can and does audit registered persons - including Agents - against the out-of-pocket expenses amount supplied with STCs and if paperwork cannot be supplied if and when requested, STCs can be failed and must be re-submitted.
Failure to comply with the Regulations can also result in penalties and prosecution where warranted.
This information has been added to the ORER website, as below:
Date last updated: 09 Jan 2012