I want to create a production environment in my tenant to build a model-driven Power App which will need Dataverse capacity. However, I get the error message: "This environment can't be created because your org (tenant) needs at least 1 GB of database capacity. I understand that extra capacity will need to be purchased. We have Microsoft 365 Business Premium (Non-profit Staff Pricing). We are a charity. I want to build a model driven app that about 5 or 6 users will use. I guess the database capacity needed will not exceed 1GB of storage. What is the cheapest option here?
To build and use a Model drive app will require either a per user or per app license. M365 Business Premium doesn't cover Model Driven apps since they require Dataverse. The best approach would be to buy one per user license for you as the developer and 5 per app licenses for the other 6 users. Those licenses will also provide the capacity you need to add a custom production environment.