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Considerations for a Successful Solar Request for Proposal Iowa Association of Municipal Utilities 2014 Energy Conference and Community Solar Workshop By Steve Guyer 9/30/14 CONFIDENTIAL
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Page 1: Considerations for a Successful Solar Request for Proposalarchive.iamu.org/conference/energy 2014/Steve Guyer.pdf · Considerations for a Successful Solar Request for Proposal ...

Considerations for a SuccessfulSolar Request for Proposal 

Iowa Association of Municipal Utilities2014 Energy Conference and Community Solar Workshop

By Steve Guyer9/30/14

CONFIDENTIAL

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Successful RFP Community Solar Workshop

March 7, 2014Columbus Junction, IA

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About GWA 

•Founded in 2008, NABCEP Certified in 2010 and recertified in 2013 with more than 60 PV systems installed across Iowa and monitored at www.gwaintl.com•Over 30 years of utility industry, energy & environmental expertise.•Member of Solar Energy Industries Association www.seia.org since 2009.•Experienced in Federal, State, Municipal Utilities, RECs, and commercial RFP processes.

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GWA Customers

• Federal, State, & Local Governments– Cedar Rapids Federal Court House– Iowa Department of Natural Resources (IDNR)– Iowa Association of Municipal Utilities (IAMU)

• Iowa Farmers– Livestock producers– Practical farmers of Iowa

• Commercial & residential– Net zero homes

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GWA Services

• Solar site assessment & consultation• Renewable energy feasibility studies• USDA REAP Grant, IEC AERLP, & Utility permit• Turnkey design & build• Service contract, O & M

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PREFACE

The procurement process for a solar photovoltaic system, or a Solar Power Purchase Agreement, may be different and unfamiliar territory for Municipal Procurement departments.  

• Unfamiliar technical terms• Likely no previous experience• May require unique considerations• Relying on existing non‐solar specific RFPs or excluding key elements will negatively impact the number and quality of responses  

CONFIDENTIAL

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Developing a Successful Solar RFP

• Start with a Clear, Well Defined goal• Early Stakeholder Involvement• Outcome Based Requests for Proposal• Provide Site Information, Site Assessments• Consider Hiring a Consultant or Owner’s Agent 

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Articulate a Clear Well Defined Goal

• Why are you pursuing a solar energy system or energy? How you define the goal will dictate the responses received and vendor selected.

• Strictly for the energy? • Lower Cost than Current $/kwh? • Demonstration purposes? • Training objectives?• Greenhouse gas emissions?  

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Early Stakeholder Involvement

• Engineering staff for site suitability• Financial staff for analysis• Legal staff for applicability of laws and contracts

• Solar installers and vendors• Consider Requests for Information and stakeholder meetings

CONFIDENTIAL

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Early Stakeholder Involvement

• Check with your association & call Joel Logan (IAMU) 

• Check with North American Board of Certified Energy Practitioners (NABCEP) & locate certified PV installer at http://www.nabcep.org/certified‐installer‐locator?state=IA (nine certified installers in IA)

• Check with Solar Energy Industries Association at www.seia.org for solar industries in IA and/or other states

CONFIDENTIAL

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Outcome Based Requirements

CONFIDENTIAL

• Focus on system output requirements rather than specific system design criteria

• Provides respondents flexibility to design a system that leads to the desired output at the desired cost

• Specify a standard method of predicting system performance in kwh  ‐ for example, require all respondents to use NREL PVWatts

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Predicting System Performance

CONFIDENTIAL

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Predicting System Performance

CONFIDENTIAL

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Site Information and Site Assessments

• Provide as much site information as is technically or financially feasible

• Aerial photography and topographic maps• Building plans if on roof and structural analyses, soil profile if on ground

• Shading analyses• Electrical• If required of vendor, ensure easy site access

CONFIDENTIAL

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Consider a Consultant orOwners Agent

• Complex topic and negotiations• Do you have experience evaluating solar designs?

• Are you comfortable evaluating vendor/manufacture representations?  

CONFIDENTIAL

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Key Solar RFP Elements(not all inclusive)

• Roof Integrity and Warranties• Financial Requirements• Permitting and Interconnection Requirements• Team Qualifications and Solar Project Experience• Technical Specifications• Performance monitoring and guarantees• Milestones with Dates• Equipment or Labor Origin Requirements

CONFIDENTIAL

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Roof Integrity and Warranties,Ground Use Restrictions

• What demonstration is required for structural; engineering analysis with PE stamp? 

• Will the roof manufacturer certify that the system will not void the warranty?

• If ground mount, rezoning? Re‐grading?• Are there restrictive covenants on the land use

• Is the soil capable of supporting piles without need for concrete, etc?    

CONFIDENTIAL

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Financial Requirements 

• Determine what will be required for purposes of financial demonstration and progress payments

• As much as 60% of the project cost may be associated with the solar equipment

• The timing of payments can significantly increase total project costs, and limit the number of RFP responses  

CONFIDENTIAL

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Permitting and Interconnection Requirements

• Define responsibility for obtaining permits and approvals, and associated costs

• Define the responsibility for obtaining interconnection approval  

CONFIDENTIAL

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Team Qualifications and Project Experience

• Consider RFQ• Company profile• State Licenses• Industry certifications – Is the Installer NABCEP certified

• Proof of Insurance • Team background• Solar project experience  ‐ total number and capacity, differentiated by type and equipment brands  

CONFIDENTIAL

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Technical Specification • Define the equipment; module, inverter, balance of system.

– Panels: poly & monocrystalline, thin film• UL Certified• 60, 72, 96 cell; wattage from 230 to over 400• AC panels, smart panels

– Central/string Inverters:  standard 5 yr warranty, option to extend to 10, 15, & 20 yrs. Service contract or not? (SMAs, Aurora, Fronius, etc.)

– Power optimizers with central inverters: std 25 yrs warranty for optimizers, 5 yr for inverters, panel level monitoring. (Tigo, Solaredge)

– Microinverters: std 25 yr warranty & panel level monitoring (Enphase)– Three phase, single phase?

• Better to use an output based approach and have the vendor specify the system components 

• Consider requiring one‐line diagram  

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Operation and Maintenance

• Solar is relatively maintenance free– Panel cleaning, no power washing, sufficient rainfall may be enough, 10% increase of output at dusty area

– Inverter/parts replacement: – standard warranty: 5 years for center inverter, 25 yrsfor microinverters & power optimizers, 20 yrs for 80% output for panels

– Minimizing downtime• Contract for Maintenance• Provide staff training?• Provide an O&M Manual?

CONFIDENTIAL

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Performance Monitoring

• Measure and track kwh production• System wide or per module level?• Performance guarantee – caution advised. Models used to predict performance are based on meteorological averages. 

CONFIDENTIAL

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Milestones with Completion Dates

• Detailed project plans with major milestones and anticipated completion dates

• Permitting• Procurement• Start of construction• Construction completion• Testing • Interconnection approval 

CONFIDENTIAL

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Equipment or Labor Origin Requirements 

• Will equipment require Buy USA?• Local labor required?• Prevailing wage required?

CONFIDENTIAL

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Solar Parity is Coming?

CONFIDENTIAL

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Solar System Performance

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Questions?

Steve [email protected]

515‐249‐2627

CONFIDENTIAL


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