Sample Agreement

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SolarCurrents Program Agreement
This SolarCurrents Agreement, including all exhibits hereto (“Agreement”) is made by and between DTE Electric
Company (“DTE”), a Michigan corporation, whose address is One Energy Plaza, Detroit, Michigan 48226, and
(“Customer”), who receives distribution service from DTE at
, (the “Property”) as of the date executed by DTE below (“Effective Date”),
for the purpose of establishing a _______ DC nameplate capacity photovoltaic solar system for the DTE
SolarCurrents Program as further described at www.dteenergy.com/solar (“SolarCurrents Program”). For purposes
of this Agreement, the term “Customer” shall also include the owner of the Property (“Property Owner”), in the event
that the Property is jointly owned by Customer and a third party, together with subsequent owners of the PV System
(as defined below) and the Property (as those terms are defined in this Agreement) during the Term of this
Agreement.
1. Term.
If the PV System fails to have a Commercial Operation Date, as defined below, by [insert date] from the
Effective Date of this Agreement, Company shall have the right to terminate this Agreement upon written
notice to Customer with no further obligations to Customer. Unless otherwise terminated as provided in this
Agreement, the term (“Term”) of this Agreement shall commence as of the Effective Date and shall continue
through August 31, 2029.
2. REC Generation and Delivery. Subject to the terms of the Agreement and starting upon the Commercial
Operation Date, Customer agrees to sell and DTE agrees to purchase from Customer all of the Renewable
Energy Credits (“RECs”) generated by Customer’s photovoltaic solar electric generating system (the “PV
System”) as more fully described in the attached Exhibit A – PV System Details. As used in this Agreement,
a “Renewable Energy Credit” or “REC" means a unit of credit which equals one megawatt-hour (“MWh”) of
electricity generated by a PV System, including any and all renewable energy attributes and/or benefits
derived from such generation or as calculated by the Michigan Public Service Commission (“MPSC”)
operations staff, and certified by the MPSC Administrator pursuant to the Clean, Renewable and Efficient
Energy Act, as modified from time to time (referred to herein as “the Act”), and includes all RECs, including
but not limited to incentive RECs as defined by MCL 460.1039. For delivery and title transfer purposes only
under this Agreement, for every kilowatt-hour (“kWh”) generated by the PV System, the equivalent kWh of a
REC will be deemed delivered and title to such kWh of a REC will transfer to DTE upon DTE’s payment to
Customer. For purposes of this Agreement, “Commercial Operation Date” shall mean the date when the PV
System has been commissioned by DTE in accordance with the Parallel Operating Agreement and is
operating in accordance with the Parallel Operating Agreement and Exhibit A.
3. REC Credit and Up Front REC Payment Program. After the Commercial Operation Date, DTE shall pay
Customer as follows for RECs generated by the PV System: (1) an upfront payment of a portion of the
estimated production of RECs under this Agreement for the Term (“Up Front REC Payment”) and (2) a fixed
price per kWh for the balance of the RECs generated over the Term (“Monthly REC Credit”), both of which
shall be determined as follows:
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DTE- SolarCurrents Agreement
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One- Time Up Front REC Payment
Total amount of Up Front REC Payment
PV System: Residential Customers
$0.20 times the number of DC watts installed (“Total
Up Front REC Payment”)
PV System: Non-Residential Customers
$0.13 times the number of DC watts installed (“Total
Up Front REC Payment”)
Fixed Price Monthly REC Credit
Residential Customers - $0.03 per kWh generated by the PV system in DTE’s billing cycle.
NonResidential Customers - $0.02 per kWh generated by the PV system in DTE’s billing cycle.
The Up Front REC Payment shall be paid within 60 days after the Commercial Operation Date provided that
Customer’s account with DTE is in good standing and not in arrears. The Monthly REC Credit shall be
calculated in each billing cycle and pro-rated in the case of the first and last billing cycles of the Term, based
on the energy generated during the billing cycle that is part of the Term. Customer’s bill from DTE (“Utility
Bill”) shall reflect a credit in the amount of the Monthly REC Credit. At the end of each calendar year, if the
Monthly REC Credit owed to Customer for that calendar year is more than $250.00, Company will issue a
st
check in such amount to Customer in lieu of any Monthly REC Credit by March 31 of the following year.
Notwithstanding anything stated to the contrary in this Agreement, DTE shall, upon written assignment from
Property Owner as evidenced by completion of Exhibit C, make the One Time Up Front REC Payment in the
form of a check payable to such third party. Further, in the event DTE receives notice from a third party
lender, which (i) provided financing for the PV System and has filed the appropriate recordings for such
financing or (ii) has a mortgage on the Property, directing the One Time Up Front REC Payment under this
Agreement shall be payable to such third party, DTE shall make such payment to the third party lender and
Customer shall have no recourse against DTE. Any other assignments of payment by Customer are void
abinitio.
4. Inspection and Access
Throughout the Term of this Agreement, the Company shall have the right to inspect and certify the PV
System in order to ensure that it meets the requirements of the SolarCurrents Program, including the
requirements under this Agreement. Customer shall cooperate fully as needed in such endeavors and shall
grant Company the rights of ingress and egress as well as access to the PV System and the PV System
generation meter and its enclosure (collectively “Access Rights”).
5. Customer Obligations.
a.
Customer shall, at its sole expense, own and install the PV System located at the Property which shall meet
the specifications and requirements of Exhibit A. Customer’s PV System shall be located at the Property at
all times during the Term of this Agreement. Customer shall independently select a contractor to install the
PV System and Customer’s sole recourse for any issues or problems with the PV System shall be through
such contractor selected by Customer. Customer shall be solely responsible for ensuring that the PV
System complies with all applicable federal, state, and local laws, rules, or regulations, including those
determined by the MPSC, and any national standards.
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b.
All energy delivered by Customer to Company shall be metered by the billing metering installed and owned
by the Company. Customer shall provide a meter enclosure for the PV System generation meter.
c.
Only one PV System not to exceed 20kW shall be installed on the Property and shall be eligible for
Company’s SolarCurrents Program. In addition, Customer agrees that Nameplate Capacity of the PV
System as identified on Exhibit A shall not be modified in any manner and that the PV System shall not
operate in violation of the Parallel Operating Agreement.
d.
Customers' PV System generation will be metered, reviewed monthly, and is subject to audit from time to
time for compliance with this SolarCurrents Program Agreement.
e.
Customer agrees to fully cooperate with DTE in registering any generated RECs in the Michigan Renewable
Energy Certification System (“MIRECS”), such equivalent system used in the State of Michigan, or any other
system for REC certification. Customer agrees to comply with the requirements of MIRECS and provide
any additional information as DTE may require from time to time for MIRECS. Customer shall not incur any
charges for MIRECS except those ancillary costs associated with providing DTE with information for
MIRECS.
f.
Customer hereby transfers to DTE all of Customer’s interest in, and right and title to, all RECs generated by
the PV System at the Property during the term of this Agreement.
g.
Customer shall continue to be a customer in good-standing with Company and timely pay all monthly Utility
Bills in full.
6. Excess Energy. DTE will receive and Customer will deliver all energy, if any, generated by the PV System
at the Property in excess of Customer’s consumption for any period of generation by the PV System
(“Excess Energy”). Customer will receive compensation for the Excess Energy generated by the PV
System as set forth in the DTE’s Standard Contract Rider No.16 Tariff (referred to herein as “Net Metering
Rider”) on file with the MPSC, as modified from time to time.
7. No Warranty. Entering into this Agreement does not imply any representation or warranty by DTE of the
design, installation or operation of the PV System, and DTE expressly disclaims any and all warranties,
express and implied, of the PV System as to workmanship, design, quality, or performance, including the
WARRANTIES OF MERCHANTABILITY AND FITNESS OF THE EQUIPMENT FOR THE PURPOSE
INTENDED.
8. Indemnity. Customer shall indemnify, defend, and hold DTE, its employees, agents, successors, assigns,
subsidiaries and affiliates harmless against any and all claims, demand, liens, lawsuits, judgments or
actions of whatsoever nature that may be brought on account of the installation, maintenance, operation,
repair, or replacement of the PV System, including any component thereof. DTE shall not be responsible or
liable for any personal injury or property damage caused by the PV System, including any component
thereof. Any indemnity obligation shall survive termination and/or expiration of this Agreement.
9. Standard of Care; Maintenance and Repairs. Customer shall maintain the PV System, including the
individual components thereof in good working order at all times during the Term of this Agreement. If
during the Term of this Agreement the PV System, including any components thereof, should be damaged
or destroyed, Customer shall promptly use commercially reasonable efforts to repair or replace such
component to its original specifications as provided in Exhibit A. In no event shall the repair or replacement
of the PV System cause the PV System to operate in violation of the Parallel Operating Agreement.
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10. Breach and Default: A breach of this Agreement (“Breach”) shall occur upon the failure of Customer to
perform or observe any material term or condition of this Agreement or Net Metering Tariff. A default of this
Agreement (“Default”) shall occur upon the failure of Customer in Breach of this Agreement to cure such
Breach within five (5) business days of written notification of the Breach. Examples of a breach of the
Agreement include, but are not limited to:
(i) Failure of Customer to pay money when due, including Customer’s failure to maintain its Utility Bill in
good standing with Company;
(ii) Failure of Customer to comply with the terms and conditions of this Agreement;
(iii) Violate the representations and warranties contained herein;
(iii) An attempted assignment of this Agreement by Customer without providing Company prior written
notice;
(iv) Failure of Customer to provide Company Access Rights, or Customer’s attempt to revoke or terminate
such Access Rights;
(v Customer modifies or otherwise exceeds the Nameplate Capacity of the PV System without Company’s
written consent; or
(v) Failure of Customer to provide information or data to DTE as required under this Agreement.
If Customer is in Default under this Agreement, DTE may suspend its performance under this Agreement
and/or disconnect service to the PV System without incurring any liability to Customer. DTE shall resume its
performance under the Agreement and reconnect service to the PV System after Customer has cured the
Default that resulted in suspension of the Agreement/disconnection to DTE’s satisfaction. Customer shall
be responsible for all costs associated with disconnection or reconnection of the PV System. If a Default by
Customer is not cured within ninety (90) calendar days of the date the Customer receives notice of the
Default, DTE may, without waiving any other remedy available under law or in equity, cancel this
Agreement, withhold any Monthly REC Credits in Customer’s Utility Bill and/or payments to Customer for
the Monthly REC Credit as provided under this Agreement and obtain a refund of the pro-rated amount of
the Up Front REC Payment, and any reasonable costs and attorney fees associated with collecting such
refund (collectively “Refund”). All remedies are cumulative.
11. Early Termination. The Company may terminate this Agreement upon written notice in the event that any
of the following occur:
(i) Any representation or warranty made by Customer is false or misleading in any material respect when
made or when deemed made or repeated;
(ii) Any Default by Customer is not cured within ninety (90) calendar days of the date the Customer receives
notice of the Default; or
(iii) The Customer ceases to operate its PV System for a continuous period of one hundred eighty (180)
calendar days.
Upon such termination, in addition to any other remedies available under law or in equity, DTE may obtain a
Refund from Customer.
12. Customer Covenants, Representations and Warranties. Customer covenants, represents and warrants
that at all times during the Term:
a.
Customer is authorized and competent to sign this Agreement and has read this Agreement in its entirety
and agrees to be bound by its terms;
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b.
Customer is an end-use distribution consumer located within the distribution service territory of DTE in
Michigan whose primary business is not the generation of electricity for retail or wholesale sale from the
same facility and is taking service under DTE’s Net Metering Rider;
c.
Customer will install or has installed a PV System at the Property consistent with the requirements of the
SolarCurrents Program, and such system does or will conform to the specifications and requirements
described in Exhibit A attached hereto and the Parallel Operating Agreement;
d.
Customer and/or, if applicable, the undersigned Property Owner, is the owner, free and clear of all claims
and interests, of all of the RECS generated by the PV System at the Property. In the event Customer
pledges this Agreement and/or the proceeds of this Agreement as security to finance the PV System,
Customer shall retain the exclusive ownership rights of any such RECs generated to sell to DTE under this
Agreement;
e.
The PV System constitutes a fixture of the Property;
f.
Customer and/or, if applicable, the undersigned Property Owner is the owner of record of the of the PV
System and Property; and
g.
Customer agrees to purchase its requirements for electric energy (other than that generated by the PV
System) from DTE for the entire Term of this Agreement.
13. Force Majeure. Neither DTE nor Customer shall be liable for any loss or damage of any nature whatsoever
incurred or suffered as a result of any failures or delays in performance due to any cause or circumstance
beyond its control, including but not limited to, any failures or delays in performance caused by strikes,
lockouts or labor disputes, fires, Acts of God or the public enemy, riots, incendiaries, interference by civil or
military authorities, compliance with the law or with the orders or policies of any governmental authority. The
party claiming force majeure shall in good faith use such effort as is reasonable under all the circumstances
known to that party at the time to remove or remedy the cause(s) and mitigate the damages, except that
settlement of strikes or lockouts shall be within the sole discretion of the party involved.
14. Successors and Assigns and Subsequent Owners. DTE and Customer agree that (a) this Agreement
shall be binding upon and inure to the benefit of all successors and assigns of DTE, (b) all representations,
warranties, covenants, obligations and agreements of Customer hereunder, including but not limited to the
assignment of RECs to DTE, shall be binding upon, and the rights of Customer hereunder shall inure to the
benefit of, every subsequent owner of the PV System and the Property for the period that such person owns
the PV System and the Property during the Term of this Agreement, it being agreed by DTE and Customer
that, among other things, DTE shall be entitled to all RECs generated by the PV System at the Property
during the Term of this Agreement notwithstanding any change in ownership of the PV System and the
Property during the Term of this Agreement, and (c) the PV System shall be subject to all terms and
provisions of this Agreement during the Term of this Agreement. It shall be Customer’s sole obligation to
properly notify and assign the rights and obligations of this Agreement to a subsequent property owner.
15. Recording. Customer, and the Property Owner, if a party to this Agreement, hereby consent to DTE, at its
option, executing and recording against the Property, in the office of the Register of Deeds for the county in
which the Property is located, an affidavit with respect to this Agreement materially in the form contained in
Exhibit B attached hereto (the “Affidavit”), for the purpose of giving public notice of the existence of this
Agreement, including but not limited to the obligation to transfer RECs to DTE and the agreement of
Customer set forth in this Section 15. DTE and Customer further agree that (a) at all times during the term
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of this Agreement, the PV System shall be free and clear of all claims and interests, except any third party
lender, which (i) provided financing for the PV System and has filed the appropriate recordings for such
financing or (ii) has a mortgage on the Property, , and (b) no owner of the PV System and the Property shall
sell the PV System and the Property without providing a copy of this Agreement to the purchaser and
delivering to DTE with an assignment agreement reasonable acceptable to DTE. After the Commercial
Operation Date, in the event this Agreement is terminated as provided in paragraph 10 or 11 and DTE
received full payment of the Refund, DTE agrees to discharge the Affidavit in the office of the Register of
Deeds for the county in which the Property is located.
16. Public Announcement. DTE shall have the right to use any photos of the PV System in any public
announcement, statement or other disclosure with respect to this Agreement or the SolarCurrents Program.
17. Notices. All notices or other communications required or permitted hereunder shall be in writing, and shall
be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested, by
means of an overnight courier service or by facsimile to the address set forth below, or such other address
as a party shall designate by written notice in the manner set forth herein, and shall be deemed received
upon the earlier of (i) if mailed, two (2) business days after the posting by a United States Post Office; (ii) if
personally delivered, the date of delivery to the address of the person to receive such notice; (iii) if sent by
courier service, two (2) business day after delivery to such courier service; or (iv) if given by facsimile, upon
electronic evidence of receipt.
If to DTE:
DTE Electric Company
One Energy Plaza ___________
Detroit, Michigan 48226
Attention: SolarCurrents Program Manager
With a copy to:
DTE Electric Company
One Energy Plaza
688 WCB
Detroit, Michigan 48226
Attention: Office of the General Counsel
If to Customer:
Attention:
18. Saving Clause/Independent Terms. Each term and condition of this Agreement is deemed to have
independent effect and the invalidity of any partial or whole paragraph or article shall not invalidate the
remaining paragraphs or articles.
19. Nonwaiver. The failure of DTE to insist or enforce, in any instance, strict performance by Customer of any
of the terms of this Agreement, or to exercise any rights herein conferred shall not be construed as a waiver
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or relinquishment to any extent of its rights to assert or rely upon any such terms or rights in any future
occasion.
20. Governing Law. This Agreement shall be governed by the law of the State of Michigan. In the event of a
conflict between the terms and conditions of this Agreement, and DTE’s Tariff, including any other
agreement on file with the MPSC this Agreement shall control. The parties agree that any action with
respect to this Agreement shall be brought in a court of competent subject matter jurisdiction located in the
State of Michigan and the parties hereby submit themselves to the exclusive jurisdiction and venue of such
court for the purpose of such action.
21. Entirety. This Agreement, together with all Exhibits, are the entire agreement between the parties
regarding the subject matter herein and any other representations are null and void. No modification,
alteration, amendment or construction of this Agreement will be binding upon the parties unless in writing
signed by both parties hereto.
22. Property Owner. In the event that the Property is owned by jointly by Customer and a third party, the
undersigned Property Owner joins in the execution of this Agreement for the purpose of authorizing the
execution and recording of the Affidavit; affirming the assignment of RECs contained in subsection 5e
above, the representations and warranties contained herein that are applicable to the fee owner of the
Property, including the representations and warranties contained in Sections12 above; and for the purpose
of acknowledging and agreeing that any payments to be made by DTE hereunder shall be made solely to
Customer, except as set forth in Section 3.
This Agreement has been duly executed as of the day, month and year first above written.
Customer
DTE Electric Company
Signature:
By:
Printed Name:
Date:
Name:
Its: Manager, Renewable Energy
Effective
Date:____________________________________
Property Owner (if different from Customer)
Name:
Date:
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Exhibit A – PV System Details
Customer name
Customer address
Customer email address _________________________________________________________________________________
Customer Contact number
Installer name
Installer Contact Number
Installer email address __________________________________________________________________________________
PV System Installation Details:
Nameplate Capacity: _______________kW
_________Roof mounted
__________Ground mounted
Tilt
º (90º is vertical, 0º is flat)
Are panels:
Fixed
1-axis tracking
2-axis tracking
Orientationº (180º is south, 90º is east, 270º is west) – Provide degree of each panels
________# of Panels at _____degree
_________# of Panels at ______degree
# of Panels at _______degree
Manufacturer of PV panels installed
Model number of PV panels installed
Number of Panels Installed
STC rating (watts DC per panel)
Manufacturer of PV inverter installed
Model number PV inverter installed
Number of Inverters installed
PV Inverter Input Peak Power Rating per Inverter
Input Peak Power Rating
(watts) x Number of Inverters
= Total
Estimate of annual kWh generated
Expected average yearly capacity factor of system
(please include PV WATTS calculation)
Will Michigan Labor be used for this installation
Yes
No
If yes, please provide executed certification upon completion.
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Exhibit B
AFFIDAVIT
WITH RESPECT TO
SOLARCURRENTS
AGREEMENT
STATE OF MICHIGAN
COUNTY OF
The undersigned (“Customer”) being duly sworn, deposes and says:
1. That s/he is of legal age and under no disability.
2. That S/he is a customer of DTE Electric Company (the “Company”), whose address is One Energy Plaza,
Detroit, MI 48006.
3. That the Company has entered into a SOLARCURRENTS AGREEMENT (the “Agreement”) as of
, by and between
("Customer"), [the Property Owner] and Company.
4. That under such agreement a photovoltaic solar system (“PV System”) would be or is attached, as a fixture,
to certain property, and such property was conveyed to Customer and/or the Property Owner on the
day of
, 20
, and evidence of such transfer was recorded in the Register of
Deeds of
county in Liber
and Page
.
5. That pursuant to the Agreement Customer and/or the Property Owner:
a. assigned to Company all Renewable Energy Credits (“RECs”) generated during the term of the
Agreement by the PV System;
b. agreed that (i) the assignment of RECs to Company, shall be binding upon and inure to the benefit
of all of the Company’s successors and assigns, (ii) the representations, warranties, covenants,
obligations and agreements under the Agreement, including but not limited to the assignment of
RECs to Company, shall be binding upon, and the rights of Customer under the Agreement shall
inure to the benefit of each person owning the PV System and the Property for the period that such
person owns the PV System and the Property during the term of the Agreement, it being agreed by
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the parties that, among other things, Company shall be entitled to all RECs generated by the PV
System at the Property (as that term is defined in the Agreement) during the term of the Agreement
notwithstanding any change in the ownership of the PV System and the Property during the term of
the Agreement, and (c) the PV System and the Property shall be subject to all terms and conditions
of the Agreement during the term of the Agreement.
Further Affiant sayeth not
________________________________
NAME:
Acknowledged before me in
County, Michigan on
by
.
Notary's
Stamp:
, 20__,
Notary's
Signature:
(Notary's name, county and date commission expires)
Prepared by and when recorded return to: [insert name]
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ATTACHMENT A
MEMORANDUM OF SOLARCURRENTS AGREEMENT
Description of Property
Tax identification number:
Commonly known as :
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Exhibit C
Assignment of Up Front REC Payment
(“Customer”), hereby
The undersigned,
(“Third Party”) the One Time Up
assigns to
Front REC Payment in the amount of
($
)
due and payable to Customer by DTE Electric Company (“DTE”) under that certain SolarCurrents
Agreement dated the
20
day of
,
, and authorizes and directs DTE to make such payment to Third Party at the following address:
Name
Address
City, State Zip
Customer’s execution of this Assignment is not intended to convey any right, claim, or interest in Renewable
Energy Credits, which have been assigned to DTE.
Customer
Date:
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