Community Renewable Energy

Procurement

Under ideal circumstances it would be possible to select equipment and materials based on the system design and site-specific factors, place an order, and receive the main components in plenty of time for the installation. Unfortunately, wind turbine and PV module demand is so high that that the wait can be more than a year from the time the initial deposit is paid to equipment delivery. The result is that equipment is often chosen based on availability (assuming prices are equivalent). To avoid this situation, place the equipment order as soon as financing is secured and the project owners feel comfortable that the project will go forward. Most manufacturers require a 20% deposit and may also require a letter of credit for the remainder before they will place an order in the queue. The delivery and maintenance terms will be specified in the contract between the project owners and the manufacturer.

Another option that is becoming increasingly cost-effective is to purchase refurbished or remanufactured equipment (eg. wind turbines, PV panels, etc.). Most renewable energy systems and related components are designed to last twenty years, but with proper care and replacement of the parts that receive the greatest wear and tear, they can last much longer. For example, several companies now offer remanufactured turbines, some with warranties. These warranties may not be as long-lasting as those on new turbines, but do guarantee that the turbine provided is a functioning piece of equipment. The advantage of using remanufactured equipment is its reduced cost, but there are also disadvantages to be considered. Buyers should conduct reasonable research into remanufactured equipment vendors to ensure they are working with a reputable firm. Older parts and components require more maintenance, so Operating and Maintenance (O&M) costs will be higher.

When choosing wind turbines, consideration should be given to the availability of qualified maintenance personnel. If there are other wind projects in the area, find out what type of turbines are installed, and the maintenance plan. If local technicians will be available for certain types of turbines, one should consider using the same turbines, as local maintenance professionals would decrease O&M costs and down time. Also, turbine manufacturers do not continue to make replacement parts for past models indefinitely, so ensuring a supply adequate for the lifetime of the project is necessary when considering refurbished turbines. If considering using remanufactured equipment, it is also important to verify that any state or federal subsidies support the use of remanufactured equipment.