The Union County Improvement Authority had an evaluation report prepared on the lone successful bidder of the solar panel project. The evaluation report was prepared by an evaluation team, which, according to the report, consisted of the DeCotiis law firm, the engineering firm of Birdsall Services Group, Inc. and NW Financial Group, LLC. All three of these entities are current vendors of the County, with the attorneys and engineering firm already pocketing over a half million on this scheme. Hardly an independent, objective team.
According to the report, Tioga, the successful bidder, will be relying on two sources of revenue to make the lease payments on this 28.6 Million Dollar project: Power Purchase Agreements (PPA) and the sale of Solar Renewable Energy Credits (SRECs). The reports also states that "The PPA provides approximately 20% of the recurring project revenue while the SRECs represent 80% of the Project revenue."
According to an article by Flett Exchange, New Jersey is trending towards an oversupply of solar energy in the next year which could increase the likelihood of SREC prices falling. See Flett Exchange article here.
Flett Exchange also reports that Pennsylvania is facing a potential SREC oversupply because utility companies, who buy SRECs, are developing their own solar projects.
PSE&G is doing just that in NJ.
Too bad the evaluation report prepared for the UCIA, which can be read here, failed to address such scenarios.
Keep your fingers crossed overtaxed taxpayers.
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