When offtakers post a competitive bid on RenewaFi, it can lead to a spike in competitive counters from sellers.

That’s what happened for South Hub solar offers in Q2 and Q3.

In late May, a quality offtaker posted a bid at $40, which incentivized sellers to get aggressive with their offer prices.

As a result, the median offer price, which had been at $50 in April, decreased by about $5 by June, as sellers jockeyed to attract the offtaker.
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This meant the most aggressive offers were below market value.

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In other words, these offers were in the money to the offtaker.

The result was a match at $39.75 for a 10-year, unit contingent, 50 MW PPA (chart 4).

Good things happen when market participants get aggressive!