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One of the main determinants of whether an RFP for a Power Purchase Agreement (PPA) will attract qualified developers and advantageous bids is estimated total potential capacity. If this information is not available, site area or rooftop square footage can serve as a proxy.

More Space. More Attention.

When conceiving of a renewable energy project, cities and towns should look to aggregate potential sites. Whether or not a PPA makes sense for the community will depend on the total amount of capacity that is feasible. For example, some PV developers require 500 kW of PV potential before proposing a solar PPA. Others will not pursue landfill solar projects that are smaller than two (2) MW. By aggregating as many rooftops and open spaces as possible in your project RFP, you will attract more vendors and capture economies of scale.

Whether conducting your own due diligence or investing in site assessments, your RFP should ultimately focus on quality sites. Buildings with aging roofs, for example, should be set aside for future phases. Those with many rooftop penetrations and little usable space should similarly be deferred.

 If publicly-owned buildings and open spaces are very limited, look elsewhere. Consider partnering with a neighboring municipality or other public entity in the region (e.g., schools, hospitals). This may be especially helpful where the potential partner has experience with renewable energy projects. Together, you may receive bids that neither could have attracted alone.

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