Industry
Public Administration
Challenge
A New York State Housing Authority was overwhelmed by solar proposals and lacked the time and expertise to evaluate financing, risk, and procurement options or run a competitive RFP.
Results
NextEra Advisors secured a community solar solution delivering 12% utility savings—exceeding the 10% standard—and up to $189K in savings over the contract, with a streamlined four‑week process.
Product
Community Solar
Challenge
A New York State Housing Authority was inundated with information and had been approached by many different companies regarding onsite solar installation. The Housing Authority was looking for guidance on project financing, solar energy solutions, risk assessment and procurement. The client didn’t have the resources to conduct an RFP process, or evaluate the complex details of each proposal, to ensure they received the greatest cost savings while also mitigating any potential risk exposure.
Solution
NextEra Advisors' energy procurement and renewable energy teams worked with the client to assess their desired results and process, which included:
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Analyzing their current proposal for on-site installation and advising that it would not be their most effective option with regards to their financial goals and desired timeline
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Providing multiple community solar bids through a comprehensive RFP process via a robust network of suppliers
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Financial analysis of best offers and a competitive negotiation to ensure client objectives were met in the final negotiated deal
Results
The resulting energy strategy met both of the client’s objectives of obtaining multiple bids from pre-qualified suppliers and choosing terms that best fit their longer strategic goals. NextEra Advisors also provided the client with the energy expertise to negotiate a complex contract and mitigate future risks. As a result, the housing authority received a 12% savings on their utility bills, an increase of 2% over the proposed standard of 10%. The housing authority may expect to spend approximately $63,000 per year on their utility bill. By utilizing NextEra Advisors' expertise, they could potentially save $189,000 over the course of the contract, $31,500 above the standard savings. In addition, the entirety of the bid and negotiation process only took four weeks, giving the client a solution that could be finalized and implemented very quickly, allowing them to begin realizing savings almost immediately through a subscription to a solar project that was owned and operated by someone else. This saved the housing authority from having to build or construct their own solar project on their site.
Retail-delivered renewable energy solutions are gaining popularity in the marketplace, but not all suppliers structure their products to fully align with customer objectives. Many organizations simply do not possess the in-house energy expertise and deep supplier network relations required to navigate this nuanced and complex process. Due to the ongoing consulting and advisory services that are integral to NextEra Advisors' client relationships, we were able to deliver a larger than expected savings to the housing authority.
