Question

Hello! What are best practices for an organization deploying solar across their portfolio? Is there a benefit in conducting a Request for Information (RFI) prior to a formal Request for Proposals (RFP)?

Answer

In most cases, unless someone in your organization has deep solar expertise, we recommend that you hire a consultant to help you figure out a solar strategy for your portfolio before you issue an RFP.  

Many factors come into play when determining if – and what type of – solar is appropriate for the buildings in your portfolio, including:

  • Roof type, size, and condition across your buildings
  • Local electricity prices and rate structures
  • Availability of rebates and incentives (which vary by state and utility company)
  • Property financing considerations

Additionally, answering key questions can help you identify how to configure solar for your buildings. For example:

  • Would all the solar power be consumed by your organization, or would it be sold to others?
  • Do you want the solar power to be supplied to your tenants directly or through community solar?
  • Would it make sense to include batteries to store some of the power that is generated, either for backup power or to be released into the electric system when it is most valuable?
  • Should your organization own the solar, or should a third party own it? (This depends partly on your ability to invest in a solar energy system and whether your organization can take advantage of tax credits.)
  • If a third party owns the system, would you, as the owner/operator of the building, want to buy power generated from the system installed on the roof at a discount, or is it more advantageous to have the system owner pay rent? 

The complexity of this analysis depends on the diversity of your building types and whether they’re geographically dispersed. If the portfolio is located in the same city, and the buildings are relatively uniform under similar ownership structures (for example, all multifamily affordable housing with flat roofs under six stories), the exercise is fairly straightforward. A local expert can help you estimate the economics of various options, make some decisions, and craft an RFP to put out to local solar installation companies for quotes.  

If you have a portfolio that covers multiple states and/or your buildings are various styles (a mix of schools, low-rise multifamily, high-rise multifamily, affordable, market rate, etc.), you have a lot more options and the economics of solar across your portfolio are likely to vary significantly between buildings and regions. 

In addition to figuring out which buildings make the most sense for solar, you may decide to address the portfolio in tranches, with different solutions (and different RFPs) for different parts of your portfolio. In this case, you might hire different consultants, each of whom can lead you through the above considerations for the tranche.

If you’re looking to dive deeper or need guidance on finding the right consultant for your solar project, here are a few resources to inform your search: