OEM Pivot & Rapid Contracting to Mitigate Tariff Risk for a 16 MWh Energy Storage Project

Background 

Renewable Properties is a developer and investor in small-scale utility, community solar, energy storage, and electric vehicle infrastructure projects. Since 2017, Renewable Properties has built a strong reputation for successfully bringing new solar projects online. However, they faced a challenge when their energy storage contractor presented a contract template that needed complex revisions under a tight deadline.

The Challenge

Renewable Properties was preparing for a small-scale utility solar-plus-storage project in Northern California, which required a 4 MW, 4-hour (16 MWh) battery system. Initially, they engaged with a supplier that utilized a standard contract template designed for larger-scale utility projects. Many terms and exhibits did not directly apply to Renewable Properties’ small-scale utility project size. As a result, clarifying the contract’s details required extensive coordination to align revisions under a tight procurement timeline. 

During these negotiations, a new U.S. administration signaled the possibility of increased tariffs on imported battery components. If a contract wasn’t signed quickly, the final procurement costs could escalate by millions of dollars. Balancing the complexities of adapting an ill-suited contract template while locking in pricing before potential tariff increases, Renewable Properties realized they needed an alternative storage supplier that could meet their project budget and milestones.

The Pivot

Facing an urgent procurement deadline, Renewable Properties turned to Anza’s energy storage advisory services team, leveraging Anza’s deep industry relationships to see which OEMs might already have viable inventory within the United States or adequate tariff coverage in their contracts.

Despite the relatively small system size (16 MWh), Anza engaged its network of battery providers and quickly identified an alternate OEM (“OEM B”) with available products stateside. Even better, OEM B was open to strong tariff protections—effectively eliminating Renewable Properties’ exposure to sudden cost spikes.

The Rapid Contracting Process

Because Anza had previously negotiated similar deals with OEM B, the starting point was a pre-negotiated contract. Anza worked side by side with Renewable Properties and OEM B to finalize technical and commercial terms in just four weeks, from Thanksgiving to Christmas—a period notoriously difficult for closing deals.

Anza also provided detailed technical information to expedite OEM B’s proposals:

Collating PCS, EMS, and transformer vendor quotes

Providing sizing specifics and complete equipment requirements

Encouraging OEM B to offer a comprehensive “AC-wrapped” system, even though OEM B would not usually bundle components for a project of this size

In the end, Renewable Properties mitigated the tariff risk and secured a more cost-competitive price than the original contract—a win-win that was unimaginable just weeks earlier.

Why It Mattered

Avoided Project Cancellation: The looming tariff exposure could have easily derailed such a small project.

Deep Industry Relationships: Many OEMs wouldn’t consider an installation of only 16 MWh in a supply-constrained market. But Anza’s existing pipeline and relationships opened doors.

Accelerated Timeline: The final contract—hammered out over four holiday weeks—ensured equipment delivery timelines and preserved the project schedule and original energy storage budget.

Future-Proofed Contract: Tariff risk was neutralized, giving Renewable Properties the peace of mind to proceed.

“When we realized we needed another energy storage option, Anza was supportive and provided clear guidance at every step. Their expertise and partnership were invaluable; we always felt we could rely on them for technical, commercial, and contract questions. Even amid market uncertainty and the potential for additional tariffs, Anza found creative solutions and helped us secure a more competitive contract within an incredibly tight timeline. Quickly procuring an alternative storage solution would’ve been extremely challenging without Anza’s support.”

– Omar Tantawy, Procurement & Logistics, Renewable Properties

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