After evaluating hundreds of Solar, Wind, Storage and Natural Gas proposals as a Utility consultant helping manage energy RFPs, I’ve seen which proposals are the best and which could use some help. Here are my top 6 keys to writing a winning solar RFP proposal. These tips will help make the evaluator’s job easier, make sure key aspects of your project don’t get overlooked, and help your proposal stand out.
1. Executive summary
Including an executive summary is critical to communicating the key aspects to a proposal. But the important part that not every proposal includes is a summary table. A summary table outlines the critical information being used to evaluate your projects. The first milestone is to make it to the shortlist. During the shortlist phase, critical parts of the proposal are used for scoring and to filter out the best proposals. At this stage, there are hundreds of proposals to compare. A proposal that reads more like a website instead of a PhD thesis will help the evaluator find the key data points and evaluate the proposal more efficiently.
A good summary table outlines each proposal you are offering. Each line in the table should clearly state each unique proposal offering.
What makes a unique proposal offering? A unique proposal offering is a proposal that should be evaluated separately in the scoring. For example, if you offer a project as a PPA and a Purchase option, those are two separate calculations in the scoring. One line item can be for the project offered as a PPA and another line item for the project offered as a purchase option.
2. Focus on the scoring
The scoring is the primary set of criteria used for the shortlist. If the Solar RFP outlines the scoring that will be used to pick the projects, then your proposal should be focused around the scoring. The good proposals structure their offering around the scoring with a section describing the metrics using to score their proposal and the details around each scoring section.
3. Interconnection studies and analysis
Today, the interconnection queue is a key component to evaluate the risk of the project. In the US, on average only about 19% of projects make it through the queue on time. Therefore, it could be a big highlight of your project if you can provide evidence that the project has a favorable queue status and the potential to make it through the queue successfully with minimal cost upgrades. You could provide any supplemental studies done that show the potential for minimal upgrades.
4. Proposal pricing variations
Some projects could have different proposal variations around pricing and project configuration. Offering more options gives the Utility the option to evaluate more options and increase your chances of a higher score. Three main ways to offer your project that I’ve seen include:
- PPA or Purchase
- Different PPA term lengths – 15, 20, 25, or 30 years
- PPA pricing terms
- Inflation adjustments
- Fixed
- Tied to different nodes
Utilities might want to consider a purchase option, so offering them a full purchase option is important to make your project attractive.
The PPA can be broken into different term lengths. You could offer the Solar PPA with 15, 20, 25, and 30 year options. The most attractive term length could depend on the Utilities appetite for risk and how it fits into their portfolio. It is best to offer these up front so that they know what options are available.
Inflation adjustments, fixed pricing, and pricing tied to different nodes can be used to differentiate your project pricing. This can help your proposal provide a better match to the level of risk the Utility is willing to take on.
5. Financials
Financial backing plays a critical role in your project’s viability. Identifying the critical Financial participants, metrics, and tax credit strategy of your project can help make your project successful. Credit score (if available) and funding sources are key elements to communicate in your proposal.
Communicate how your project aims to take advantage of any applicable Investment Tax Credits. Describe in detail any safe harboring techniques used or other steps taken to qualify for the solar ITC.
6. Site control
Communicating site control, site layout, and interconnection can evaluators analyze your project. For example, what permits and approvals does your project have secured? Any other datapoints and images around the site can help your solar RFP proposal stand out.
Including a site map to showcase the site layout and configuration can help. Consider using tools like ArcGIS to show where the site is located and the expected coverage of the site.
Source: https://www.arcgis.com/apps/mapviewer/index.html
Conclusion: Creating a winning Solar RFP Proposal
Making your proposal clear and including the critical information so it is easy to find can go a long way to maximizing the potential of your proposal getting shortlisted. Including critical information in a summary can help make sure your proposal gets evaluated properly. Providing different proposal variations can help your proposal match the Utilities risk appetite. Including key information such as interconnections status, financials, and site control in detail can help your proposal stand out.
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