The ABP requires all homeowners submitting an application to the program to place 5% of the total contract value on file as collateral. This Performance Collateral is held for the term of the contract to cover any under production that may occur over the next 15 years.

This is 5% of your total REC contract value held by the utility your system is contracted with (either ComEd or Ameren).  It is withheld by the utility for the full 15-year period of the REC contract and is used to ensure that your system continues to operate as projected and generate RECS.

Example Calculation of 5% Collateral:

10kW AC Fixed-Tilt System using the Standard Capacity Factor

Ameren Territory: $85.10/REC

Total # of RECS on Contract = 216

Total Contract Value = $85.10 x 216 = $18,381.60

5% Collateral = $18,381.60 x 5% = $919.08

Please note: Some systems may have additional collateral withheld from the first REC payment by CSG if the capacity factor appears significantly higher than the Standard Capacity Factor.  This will be outlined in your REC contract if this is the case.


What if my system fails to generate the required RECs?

If your system under-performs during any year in the 15 year period and fails to generate the RECs projected for that year, the utility may “clawback” REC payments. This means that you may have to pay the utility back for some RECS that were not generated. The projected delivery schedule will be included in your REC contract and updated once the IPA has confirmed your systems participation and delivery schedule.


When is the 5% due?

The 5% collateral will be collected by CSG upon contracting and sent to the utility to hold for the duration of the 15-year period.


When will I receive the collateral back?

If all RECs are delivered accordingly, the homeowner will receive the collateral back in full at the end of the term.  In the event that a collateral drawdown occurs and there is money remaining at the end of the term, the homeowner will receive the remaining amount.  








Please sign in to leave a comment.

Powered by Zendesk