Wednesday, February 19, 2014

Strategy for Faster Implementation of Solar PV projects in Sustainable Green Communities

An Year has gone by as we tried to find a way to help our small communities to find Energy Independence with Power Purchase Agreement (PPA) with a Private Developer who would finance, build and operate the solar PV system. 

This is a great  idea but with no risk comes the delays and uncertainties. Some of the host communities found out that Developer was unable to complete the projects in time due to weak financial support where the investor just backed off from the deal. What should the community do to assure faster and more assured implementation?

We are now following a two step procurement approach that can save money and get better outcome for all parties. It all starts with community education to first build the buy in and desire to go green and make your own power at a suitable site. Study of all of the municipality owned facilities energy consumption is necessary to estimate the current energy use and size the Solar PV system and a site with adequate electrical service to be able to supply excess power to the grid.

The second step is to present the opportunity to financing Companies and get a commitment from them as Proforma PPA based on a projected capital cost of the system. Once the terms of the power purchase agreements are executed then we issue a Request for Proposal to design and build the system from local developer -solar installers. These proposals are evaluated to select the contractor to submit the bid proposal to NYSERDA and get the grant commitment.The final PPA is executed after modifications to take into account the actual capital cost and grant amount. This approach takes away the need for solar PV installers to search for financing partner since the Owner makes this choice at the beginning of the project.

This market needs fast track and simpler process to cut costs and get best value for the communities. 

Go Solar Now. The process is now better and many communities now realize that this is the right thing to do.

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