A solar RFP (Request for Proposal) is a formal document used by organizations seeking bids from contractors or developers to install, upgrade, or repair solar power installations.

Today, more and more government entities (including counties, tribal councils, municipalities, and school districts) are moving toward the greater adoption of solar power for a multitude of reasons, including: reducing utility costs, hedging against volatility in energy prices, achieving renewable energy goals, and providing additional capacity to the grid.

Whether you’re a government agency, school, non-profit, business, or tax exempt organization, we’ll show you exactly how to write an effective solar request for proposal - RFP - and which components to include in your request, including defining critically important terms such as ownership, risk, and returns all clearly outlined so that you will increase your chances of receiving competitive bids from qualified contractors and developers.

Preparing to Write the Solar RFP

The first step in writing a concise and successful solar RFP is to have a clear understanding of your needs. Not every organization employs an engineer who can assess the technical conditions and deliver a feasibility study that highlights the needs and available solutions to meet them. Therefore, as a first step in the process of a solar power project, you might consider employing a specialized consultancy to carry out this technical assessment.

Here is an example of what questions to address during the first step of solar RFP preparation. Remember, you need to define the goals of the solicited projects and their scope, factoring in considerations such as:

  • Site types (rooftop, ground-based?).
  • Scale of the project (one site? multiple sites?).
  • Site feasibility (weather aspects; grid connectivity).
  • Shading/sun analysis.
  • Condition of the roof/ground.
  • Rules and conditions of interconnection with existing utility networks.
  • Budget constraints.

Next, you need to determine which procurement approach works best for you. Do you want to jump straight into an RFP (Request for Proposal), or do you want to start with an RFQ (Request for Quotation) or RFI (Request for Information)?

Third, and perhaps most importantly, what ownership model best suits your needs? Will you take direct ownership of the completed solar project, or do you want to operate on a lease/third-party PPA (Power Purchase Agreement) basis?

Once you’ve completed the above steps, it is now time to assemble your action team, including:

  • Procurement officers.
  • Legal advisors.
  • Technical experts.
  • Consultants or independent assessors.
  • Community stakeholders.

After your action team is in place, you’ll need to do a full review of all legal and regulatory requirements for a solar project, including:

  • Public bidding laws.
  • Prevailing wage requirements.
  • Local content preferences.
  • Environmental reviews.

Lastly, you will set a timeline, define the submission process, and agree on a formula for how to weigh the evaluation criteria outlined in your RFP.

Core Components and Structure of the Solar RFP Document

After taking all of the preliminary steps as outlined in the previous section, it is now time to formulate your solar RFP. It is highly recommended that you begin with:

  • Cover page.
  • Table of contents.
  • Executive summary.
  • Background (if applicable).
  • Objectives.

From there, list all of the relevant details for the project, including:

  • Site location(s) and information.
  • Expectations about the system’s size and functionality.
  • Performance requirements (such as minimum kWh/MWh production).
  • Technical specifications (equipment standards, warranties, monitoring, operations and maintenance expectations, utility interconnection/commissioning).
  • Financing and pricing requirements (including bid formats such as $/kWh for a PPA, upfront costs, and escalation assumptions/penalties).

Then, you’ll need to include specific and clear details about the submission process itself, including:

  • Format.
  • Deadlines (including for milestones).
  • Required forms/attachments.
  • Eligibility restrictions.
  • Bid bonds (if applicable).
  • Contact info and process for asking questions/seeking clarification.

Lastly, it is highly recommended to include appendices, listing information such as:

  • Site data (for the proposed project).
  • Sample contracts.
  • Bid evaluation scorecard.
  • Insurance requirements.

Key Elements to Include for Government-Specific Success

If you are a government entity writing a solar RFP, it is extremely important that you evaluate the following in order to ensure an equitable, legal, and transparent bidding process:

  • Compliance with public procurement rules (including prevailing wages, insurance, bonding, anti-lobbying certifications, etc.).
  • Risk allocations and protections (including performance guarantees, liquidated damages, decommission plans, roof/building integrity, structural warranties).
  • Clearly defined evaluation criteria (technical approach, prerequisite experience, mandatory qualifications, community benefits, hiring locally, using domestically produced components, etc).
  • Pricing/costs.
  • Special considerations (community engagement, environmental impact, post-contract options like buyout/renewal, etc).

Meanwhile, here are a few pitfalls to avoid:

  • Overly prescriptive specifications (that can limit innovation/competitiveness).
  • Unclear milestones.
  • Inadequate site data.
  • Omitting legal requirements for fulfillment (including eligibility).

Finalizing, Issuing, and Using the Solar RFP Template

Many entities writing a solar RFP begin by using an existing template or creating one for their own use. Resources for templates and further reading about solar RFPs can be found at:

  • U.S. Department of Energy’s “Better Buildings Solar PV RFP” Template
  • NREL (National Renewable Energy Laboratory) guides (United States)
  • American Cities Climate Challenge’s “On-Site Solar RFP” Template
  • Entities in the European Union must adhere to the EU-wide Public Procurement Directive guidelines, including the standard forms/notices that must be published on Tenders Electronic Daily (TED), the official portal for all EU public procurement notices.
  • Individual EU member nations may also have additional mandatory formatting guidelines, especially when publishing on national tender platforms.
  • Entities in India must adhere to national as well as state requirements for publishing tenders, including the GFR 2017 Model Bidding Documents and on the GeM Portal.
  • Entities in the UK are advised to consult the Crown Commercial Service (CCS) frameworks, Model Invitation to Tender (ITT) letters, and Procurement Act 2023 templates, as well as local parish/council invitation documents.

Starting with a template is a good way to go, but be sure to customize it for each individual project’s RFP, taking into factors such as:

  • The scale of the project.
  • Jurisdiction information.
  • Goals/desired outcomes.
  • Addenda for any project-specific clarifications.

Once you’ve written your RFP, it’s time to go through the approval process, including sign-offs from legal advisors, procurement officers, and gathering input from all relevant stakeholders.

After this is completed, it’s time to issue/publish the RFP. This can be done via standard distribution channels, such as public tenders or via other methods like holding pre-bid meetings. 

Post-submission steps include:

  • Following your pre-established evaluation process.
  • Answering questions.
  • Shortlisting bids.
  • Negotiations (if applicable).
  • Awarding the contract.
  • Monitoring and evaluating the implementation process and completed project.

Best practices for reliable and long-term success include:

  • Regular site visits.
  • Providing clear outlines about expectations.
  • Debriefs/consultations during and after project execution.

A well-crafted, concise, and clearly written solar RFP (Request for Proposal) can serve as the cornerstone for the successful implementation of solar-powered projects, delivering long-term value for the community through a transparent bidding process, cost-effective results, superior project quality, and measurable progress in achieving energy sustainability objectives.

By clearly communicating and defining a project’s goals, technical specifications, performance guarantees, risk allocation, pricing, and evaluation criteria, a thoughtful RFP will attract competitive, high-caliber bids from eminently qualified developers, contractors, and installers. This clarity will reduce the chances of inflated costs or underperformance issues, thus fostering innovative and reliable solutions to reliably generate clean, renewable solar power for decades to come.

We hope that this solar RFP guide will prove useful to you in advancing your commitments to improved environmental stewardship, achieving carbon reduction targets, and building sustainable community development projects while delivering strong returns on public money.