A well-written Request for Proposal (RFP) is the foundation of a successful commercial solar project. This guide walks you through creating an RFP that attracts qualified installers and gets you competitive, comparable bids.
What is a Commercial Solar RFP?
A Request for Proposal (RFP) is a formal document that outlines your commercial solar project requirements and invites qualified contractors to submit proposals. It serves several purposes:
- Defines your project scope clearly so all bidders work from the same assumptions
- Establishes evaluation criteria so you can compare bids objectively
- Sets expectations for timeline, deliverables, and communication
- Protects your interests by documenting requirements upfront
For commercial solar projects ranging from 100 kW to several megawatts, an RFP is essential. Without one, you'll receive proposals with different assumptions, making comparison difficult and increasing the risk of misunderstandings.
Why You Need a Formal RFP Process
Many facility managers skip the RFP process and simply collect informal quotes. This approach has significant drawbacks:
The Cost of Informal Quoting
When you request quotes without a formal RFP, each installer makes their own assumptions about:
- System size and configuration
- Equipment quality and specifications
- Warranty terms and duration
- Interconnection and permitting responsibilities
- Maintenance and monitoring services
The result? Proposals that can't be fairly compared, often leading to selecting based on price alone—which may not reflect true value.
Benefits of a Formal RFP
- Better pricing: Competition among qualified bidders typically yields 10-20% lower costs
- Apples-to-apples comparison: All bids address the same requirements
- Reduced risk: Clear documentation protects against misunderstandings
- Higher quality proposals: Serious installers invest more effort in well-structured RFPs
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View Installer Directory →Key Sections Every Commercial Solar RFP Must Include
1. Project Overview
Start with a high-level summary of your project:
- Company name and brief description
- Project location and site address
- Approximate project size (kW or MW)
- Primary project goals (cost savings, sustainability, backup power)
- Target completion date
2. Site Information
Provide detailed information about the installation site:
- Roof type, age, and condition
- Available roof area (sq ft)
- Building orientation and any shading issues
- Electrical service capacity
- Utility provider and current rate schedule
- Historical energy usage (12 months minimum)
3. Technical Requirements
Specify your technical preferences and constraints:
- Preferred panel type and efficiency minimums
- Inverter requirements (string vs. microinverters)
- Mounting system specifications
- Monitoring and data requirements
- Battery storage requirements (if applicable)
- Code compliance and certification requirements
4. Financial Requirements
Clarify your financial structure preferences:
- Preferred ownership model (purchase, PPA, lease)
- Financing options to be included
- Required financial projections (NPV, IRR, payback period)
- Tax credit assumptions
- Utility rate escalation assumptions
5. Proposal Format
Specify exactly what you want in the response:
- Required sections and format
- Page limits (if any)
- Required attachments (licenses, insurance certificates, references)
- Pricing format (lump sum, itemized, per-watt)
6. Evaluation Criteria
Be transparent about how you'll evaluate proposals:
- Weighting for each criterion (e.g., price 40%, experience 25%, technical approach 20%, references 15%)
- Minimum qualifications for consideration
- Interview or presentation process
7. Timeline and Deadlines
- RFP release date
- Site visit opportunity (date and RSVP deadline)
- Deadline for questions
- Proposal submission deadline
- Expected selection date
- Target contract execution date
- Target project completion date
Common RFP Mistakes to Avoid
1. Being Too Vague
Saying "we want a solar system" isn't enough. Specify size ranges, equipment preferences, and performance expectations. The more specific you are, the more comparable your bids will be.
2. Unrealistic Timelines
Giving bidders one week to respond to a complex RFP signals you don't value quality proposals. Allow 3-4 weeks minimum for commercial projects.
3. Forgetting the Site Visit
Always offer a mandatory or optional site visit. Installers who see the site submit more accurate proposals and encounter fewer surprises during construction.
4. Ignoring Qualifications
Don't just ask for a price—require proof of relevant experience, licenses, insurance, and references. A low bid from an unqualified installer is no bargain.
5. Unclear Evaluation Criteria
If bidders don't know how they'll be evaluated, they can't tailor their proposals effectively. Be transparent about what matters most to you.
6. Not Including Energy Data
Without historical energy usage, installers must guess at system sizing. Provide at least 12 months of utility bills or interval data.
How to Evaluate RFP Responses
Once proposals arrive, use a structured evaluation process:
Step 1: Initial Screening
Eliminate proposals that don't meet minimum requirements:
- Submitted on time
- Complete with all required sections
- Meets licensing and insurance minimums
- Has relevant commercial experience
Step 2: Technical Evaluation
Score each proposal on technical merit:
- System design quality and efficiency
- Equipment selection and warranties
- Installation approach and timeline
- O&M plan and monitoring capabilities
Step 3: Financial Evaluation
Compare financial projections using consistent assumptions:
- Normalize utility rate escalation assumptions
- Verify production estimates using independent tools
- Compare lifetime cost of ownership, not just upfront price
- Evaluate financing terms if applicable
Step 4: Reference Checks
Contact references for your top 2-3 candidates:
- Ask about on-time delivery and budget adherence
- Inquire about post-installation support
- Ask if they'd hire the installer again
Step 5: Final Presentations
Invite finalists to present their proposals and answer questions. This reveals communication style and technical depth.
Free Commercial Solar RFP Template
We've created a comprehensive, ready-to-use RFP template based on best practices from hundreds of commercial solar projects. It includes:
- Complete RFP structure with all key sections
- Fill-in-the-blank format for easy customization
- Evaluation scorecard for comparing bids
- Sample language for technical requirements