Common use of Interconnection Services Clause in Contracts

Interconnection Services. (a) Upon receipt by Dealer of a written notice from SunPower that it may proceed (the “Notice to Proceed”) to obtain permission to operate the System from the utility (“PTO”) and interconnect the, Dealer shall within ten business days of receipt of the Notice to Proceed complete the process of testing the System and will (i) arrange with the local utility company to inspect the installed System (if the utility requires such an inspection) and (ii) upon receipt of permission to interconnect from the utility, issue a commissioning report in the form provided to Dealer in the Program Materials (“CommissioningReport”). Dealer shall submit the Commissioning Report with the invoice for the Interconnection Completion Payment as a condition of payment by SunPower of such invoice. (b) Dealer hereby acknowledges and agrees that any Systems accepted by SunPower in accordance with this Agreement must be leased to a Lessee pursuant to a valid and executed Lease. (c) In the event Dealer interconnects or otherwise energizes the System (other than for the purposes of testing procedures that do not trigger Placed in Service (as defined below)) or obtains authority from the local utility to commence parallel operation prior to receiving the Notice to Proceed from SunPower, or otherwise compromises or eliminates SunPower’s or its partners’ ability to obtain any available financial incentives through a breach of any obligation under this Agreement, Dealer shall be fully liable for any recaptured, disallowed or otherwise lost financial incentives or lost benefits related to financing arrangements experienced by Lessor or SunPower (which can be greater than $3.00 per watt, depending on the jurisdiction and type of lease). For purposes of this Agreement, “Placed in Service” means (i) the System has been installed and tested and shown capable of operating in a reliable and continuous manner for its intended purpose, (ii) legal title and control over the System have been conveyed to SunPower or Lessor and/or (iii) all permits needed to operate the System (including authority from the local authority to commence parallel operation) and to put the System to its intended use of leasing it to the Lessee have been obtained. (d) Dealer shall ensure that the configuration of the System and the terms of the Lease conform to the requirements of the local electric utility company and any other regulatory bodies with jurisdiction over the interconnection of the System. (i) Subject to the provisions in Section 6(g) above, Dealer shall assist Lessee in arranging for, and entering into, an interconnection agreement with the local electric utility company. (ii) Dealer shall submit written permission to operate the System, or notification of interconnection, from the utility with the invoice for the Installation Completion Payment as a condition of payment by SunPower of such invoice.