System Expansion vs Co-Location

The Program Administrator recently sent some AVs emails requesting confirmation of system expansions or co-locations. There is frequently confusion around the difference between an expansion and a co-location. A system cannot be both an expansion and a co-location.

  • An expansion is when additional capacity is added to an existing system. The existing system can already be under REC contract in the Program, or it can be a system that was built outside of the Program, with just the expanded portion applied to the Program. This is an addition to an existing system on the same parcel.
  • A co-location is when two or more systems are located on the same roof or the same parcel of land, and are owned by the same or affiliated parties. This is a new secondary system that happens to reside on the same parcel.

As expansions and co-locations receive different REC pricing from general systems, for co-locations, AVs may be asked to provide proof that parties who own systems on the same roof or parcel (for example, two unaffiliated business that are located within, and share the roof of, a general office building) are unaffiliated, to ensure accurate REC pricing is applied to the project(s).