The Open Auction is a live auction where solar developers can bid on projects an unlimited number of times for free. Solar developers submit an initial PDF proposal, along with a summary information sheet outlined by NRG Market. Bid value is driven by the total system value and time horizon specified in the summary information sheet. Property owners see all of the developer’s current bids, summary information sheets, ranks, and their names. Developers can see other developer’s bids and rank, but their names are kept anonymous. The initial PDF proposal submitted by each developer is hidden until the auction is finalized, at which point the chosen developer updates the PDF proposal to reflect their current bid. All PDF proposals submitted to the auction are audited by NRG Market staff to ensure the bids are accurate.
While the top bid is usually a leading consideration, it is not always the chosen bid. In the Open Auction round, the property owner is encouraged to communicate with each developer outside of the auction to clarify questions relating to the developers’ specific guidelines and procedures. Based on a developer's size, headquarter location, experience, etc., a property owner may feel more comfortable with one developer regardless of their final bid. At the conclusion of the auction process, the property owner selects a developer and the other two developers are notified.
The length of the auction process is predetermined at the property owners discretion. The property owner can elect for an Unlimited Time Auction or a Fixed Time Auction, depending on their individual time horizon and auction method preference. Regardless of length, once the auction concludes the property owner has 30 days to make a decision on finalized bids. Please note: Once the bidding window has ended, developer bids are final and can not be changed. The property owner is able to commit to a bid anytime within the 30 day window, and if the property owner does not make a decision, the current developer bids are no longer guaranteed for future auctions.
The first option available is an unlimited time auction, which allows the property owner to end the auction whenever they want. When the property owner is prepared to conclude the auction process, NRG Market notifies developers who then have seven days to finalize their bids. This also allows developers who have not submitted a bid time to certify a bid and submit their proposals. The unlimited time auction is recommended for property owners auctioning a large portfolio of properties, or, a large single property, which often takes longer to assess and draft proposals for.
The second option available is the fixed time auction, which allows property owners to choose the auction start and end date. The amount of time remaining on the auction is displayed on the summary information sheet, so developers are prepared to finalize their bids. Given the auction length is predetermined and displayed, once the auction ends, all bids are finalized. The property owner then has 30 days to accept a bid. The fixed time auction is recommended for property owners who need or want a finalized bid within a certain time frame.