Background
Pacifico Power, a California-based energy solution developer, specializes in providing customized on-site generation solutions for commercial and industrial users. Originating from the successful Pacifico Energy company in Japan, Pacifico Power prides itself on being technology-agnostic and dedicated to finding the best solutions for clients with significant energy demands. The company sought Anza’s support with procurement for 17 MW or a collection of solar projects. Pacifico Power was already under engagement with Anza, leveraging this relationship to drive their success by utilizing Anza’s data and analytics, demonstrating a proactive and strategic approach to their solar procurement challenges.
The Challenge
Pacifico Power faced daunting challenges in its module procurement process. With shifting project timelines and supply chain risks, they needed better market transparency and funding alignment to keep their projects viable. Pacifco Power struggled with a lack of real-time updates on tariffs and vendor data, misaligned funding cycles, and securing the best deals in a competitive market. They lacked the tools to efficiently and effectively evaluate the balance of system (BOS) savings and production revenue impacts for different module options. In addition, Pacifico Power’s smaller-sized purchases meant they received less attention from manufacturers.
This already challenging procurement environment coincided with a significant increase in solar tariff complexity. On April 24, 2024, a new AD/CVD petition was officially filed against Cambodia, Malaysia, Thailand, and Vietnam, confirming industry speculations about impending solar duties. This new case could result in retroactive duties, significantly impacting import strategies and pricing models.
Solution
Anza’s timely insights and strategic guidance helped Pacifico Power navigate these market uncertainties, enabling Pacifico Power to adjust its procurement strategy proactively and secure a cost-competitive product and terms despite the shifting tariff landscape. Anza connected Pacifico Power with a Tier-1 manufacturer to mitigate the new and old AD/CVD risk along with UFLPA risk. Besides reducing tariff risk, Anza helped negotiate better terms, reducing initial deposits and aligning payment schedules with funding availability. Anza saved Pacifico Power $0.04/watt compared to their most recent module quote. With Anza’s data and analytics, Pacifico Power accurately saw its module choice’s effect on BOS and production, empowering them to make informed decisions swiftly and streamline their procurement process. With Anza’s support, Pacifico Power went from module selection to a signed contract and purchase order in less than a month.
Conclusion
Pacifico Power, with Anza’s expert support, successfully navigated the complex landscape of solar module procurement amidst shifting tariffs and supply chain uncertainties. Anza’s comprehensive market insights and strategic negotiations enabled Pacifico Power to secure favorable terms and cost-effective module options, ensuring the economic viability of their projects.
Navigating tariffs can be complex, but Anza is constantly tracking module market dynamics to help you make informed decisions. Contact Anza today to learn how we can help you see more options, buy better, and ensure the success of your renewable energy projects.
“Anza’s strategic guidance has been vital in navigating the solar module market’s complexities, securing favorable payment terms aligned with our funding cycles, and sourcing modules 19% below our most recent quote. Their insights into tariff changes and vendor updates ensure we stay ahead in this dynamic industry. Anza has been indispensable in filling knowledge expertise gaps.”
– Jon Hirt, VP of Construction, Pacifico Power
