How to Successfully Run Commercial Solar Procurement
PowerMarket
Transforming buildings into Clean Energy Assets. A Techstars portfolio company.
6 Essential Steps for Successful Commercial Solar Procurement and Comprehensive Risk Assessment for Sustainability and Asset Managers
In England and Wales, there are approximately?6.2 million non-privately owned buildings, with?76%?having undergone an Energy Performance Certificate (EPC) survey in the past decade. Alarmingly,?53%?of these buildings hold an EPC rating of D or lower, underscoring the urgent need for energy efficiency improvements. By upgrading these buildings, organisations could collectively save over?￡40 billion?annually in energy costs. As the UK intensifies its efforts to meet net-zero targets, the installation of solar photovoltaic (PV) panels on commercial real estate is increasingly viewed as a viable solution to enhance energy efficiency and cut costs. However, navigating the procurement process can be complex, especially for companies with extensive portfolios and limited internal resources. Here, we outline an optimised procurement process for installing solar PV systems and the associated technical and commercial risk assessments.
6 Essential Steps to Conducting a Successful Procurement Process for Installing Solar PV Panels on Commercial Real Estate Assets
Step 1: Initial Feasibility Study and Business Case Development
Begin with a combined feasibility study and business case development to assess the suitability of your buildings for solar PV installation. This includes evaluating roof orientation, shading, structural integrity, and energy consumption patterns. Simultaneously, outline potential energy savings, carbon reduction, and financial returns from the installation. It’s essential to identify funding options and financial incentives, such as the Smart Export Guarantee (SEG), to enhance the project's viability.
Step 2: Define Technical Specifications
Defining the technical specifications for the solar PV system is a critical step. This includes determining system capacity, types of panels, inverter specifications, and mounting solutions. Ensure compliance with relevant regulations, including the UK’s Building Regulations and safety standards.
Step 3: Tendering Process
Prepare tender documents that clearly outline the project scope, technical requirements, timelines, and evaluation criteria. Given the complexity of managing multiple assets, consider partnering with a solar management platform that simplifies the tendering process and allows for efficient bid management.
Step 4: Evaluate Proposals and Award?Contracts?
Assess submitted proposals based on both technical and commercial criteria, including cost, experience, and proposed timelines. After selecting the preferred contractor, negotiate contract terms that include pricing, timelines, warranties, and performance guarantees. A well-structured contract ensures clarity and accountability throughout the project lifecycle.
Step 5: Project Management and Installation
With the contract in place, appoint a project manager or consider outsourcing this role to ensure a smooth installation process. This individual or team will oversee compliance with specifications and timelines, addressing any issues that arise promptly.
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Step 6: Commissioning, Handover, and Ongoing Maintenance
After installation, conduct testing and commissioning to verify that the system operates as intended. Provide training to your staff on system operation and maintenance. Establish a plan for ongoing monitoring and maintenance to maximise the solar PV system’s performance, ensuring it continues to deliver optimal energy generation.
Technical and Commercial Risk Assessment
When procuring solar PV installations, assessing technical and commercial risks is crucial to mitigate potential challenges.
By conducting thorough assessments throughout the procurement process and evaluating the associated risks, companies with extensive real estate portfolios can effectively navigate the complexities of solar PV installation. This strategic approach maximises the benefits of investing in renewable energy, paving the way for a sustainable future.
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About PowerMarket
PowerMarket is the all-in-one platform transforming commercial real estate with solar energy. Designed to simplify solar adoption, it helps businesses decarbonise and turn their properties into revenue-generating assets.
Through PowerMarket, users can plan, install, finance, and trade solar energy effortlessly on a single, user-friendly platform. It streamlines the entire process, saving over 90% of the time and resources typically required.
Recognised by the Financial Times as a leading energy-tech venture in Europe and supported by Oxford University and the European Space Agency, PowerMarket is at the forefront of democratising solar.