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Category:  Solar - Contract Pricing
Subject:  SES 1: Degression
ID:  10137
Date:  3/27/2009
Question:  How will the 9% degression actually work? Once a solar developer has contracted for 100 MW, the new price is simply 40.3 cents/kWh on any new contracts?
Answer:  The draft FIT price schedule includes an automatic 9% price reduction for Ground Mounted Solar PV. The reduction will be applied after each 100 MW of FIT Contracts that have been executed by the OPA in aggregate. Therefore, the first 100MW of Contracts executed would receive 44.3cents/kWh, the second 100MW of Contracts executed would receive 40.3cents/kWh, the third 100MW of Contracts executed would receive 36.7cent/kWh, etc.

For greater clarification, please refer to Section 5.2 of the draft REFIT rules. The draft price schedule will be the topic of discussion for the April 7th Stakeholder Engagement Session.

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