Solar Procurement in India

Solar power is all the rage nowadays and many government agencies and other public sector entities are scrambling to find out how they too can cut energy costs, reduce emissions and contribute to building a more sustainable planet. As stable institutions with a steady revenue stream from taxes, along with the ability to issue generally high-rated bonds to fund utility projects, local municipalities and government agencies occupy a great position to take advantage of solar procurement projects.

In addition to the large amount of energy generation needed, municipalities and other public sector entities also have different needs and resources based on their revenue streams. Because of the large demand for energy in a diverse range of geographic locations, several different types of procurement routes have arisen to meet the challenges and needs of this sector.

The relative newness of solar energy technologies and the solar procurement process by which various agencies and enterprises need to navigate can raise interesting and complex challenges. Through innovative financing mechanisms, supportive government policies, and the maturing of the solar industry, municipalities and other public sector entities have plenty of options to choose from for solar power procurement. 

Any experienced procurement manager should be able to easily navigate the journey, regardless of background. However, it’s a good idea to draft some people to the team who do have a solid understanding of the processes and how the equipment works. With a robust team of individuals with diverse skill sets, project managers can more easily delegate tasks and remain better informed throughout the life span of the project.

#1: Arrange a site 

While some solar energy projects might opt for leasing or obtaining solar energy from a private-sector utility, many are also choosing to fund and install their own solar arrays. Municipal solar projects can easily make productive use of abandoned lots, empty roofs, or other underutilized space in the community. The site should be free of any obstructions to the panels’ ability to collect sunlight, so a lot in between a bunch of tall buildings that only receives an hour or so of light in the middle of the day would not be an ideal place. However, a vacant lot by the agency in the middle of an open area could be a great way to make use of the space. In some instances, obtaining the site and the rights to use the land could involve some additional work. 

#2: Acquire financing and contracting

This is perhaps the most important step of the whole solar procurement process. As noted earlier, municipalities and other local and federal agencies seeking out ways to lower electricity bills and reduce overall energy consumption all have a wide range of resources, spaces, and jurisdiction that limit their options. 

#3: Sole ownership of the solar system

The most straightforward option for procuring solar power is for the government agency to simply purchase and install its own solar PV array. This will require the facility to cover all the initial costs, including the equipment, the installation, and the ongoing operations and maintenance.

#4: Power purchase agreement

Not every public-sector entity has the available resources to fund such an undertaking. However, many of these agencies do own large amounts of land, which is often underutilized. In an effort to develop the land into an energy-producing area, public-sector agencies will partner with a private entity to move forward with a solar energy procurement project.

Also read:- OfBusiness – Smart e-procurement for SMEs