Solar business

Curious to know about Solar Business …Let Us GlanceCopyright @ Green Turtles Technologies Pvt Ltd

India’s next source of Energy = SOLAR

India opens door for Solar Business = MONEY

India targets for US$100 billion Solar investment

Agenda

IntroductionSolar ConceptsSolar BusinessesMarket OpportunityConclusion

Copyright @ Green Turtles Technologies Pvt Ltd

About the document

This document aims to touch upon the basic information about solar, solar business opportunities, solar power projects and solar product manufacturing.With this information reader will be in the better position to take the next step decision on solar

This document covers following below topics and sub topics

Overview :- Introduction about Solar, Solar energy, Solar productsSolar Business :- Overview of Solar Business Opportunities, Solar Power Projects and Solar

Manufacturing UnitMarket Opportunity :- Details the Revenue, Sales, Market, SkillsConclusion :- Covers conclusion of overall document

Note :- We request to read this document with “FULL SCREEN”. Thank you for your co-operation.


Solar ConceptWhat is Solar ?What is Solar Energy ?Uses of Solar energy Solar Products


What is solar ?Solar is termed for “relating to Sun” or “dependent upon sun”.Example “Solar Water Heater” :-Product “Solar water heater” is termed as “Solar water heater” because it depends upon sun to heat the water

Solar Water Heater


What is Solar energy ?Solar energy is the energy provided by Sun. This energy is obtained from Sun Radiation. Use Case :-Sun radiation is converted to electric energy, which is then used by electric resources like Bulb etc, as below

Solar Panel : Used to convert Solar Radiation to electric energy


Uses of solar energy• Firstly solar energy is renewable energy (renewable energy is the energy from source where the

source will exist infinitely)• Solar energy is used generate electricity which inturn can be used as home light, electrifying

house, street light etc• Solar energy can be used to heat the water• Solar energy can be used to pump the water for irrigation, house etc• Solar energy can be used for generators for storing electricity to use for later purpose• Solar energy is used for the creation of power plant in farms, commercial offices, schools etc• Now a days, Solar energy is used in aero planes, cars, to create chimney etc• Save amount in the electricity bill by using solar on behalf of govt power supply• Increases the home value• Subsidy and incentives from govt


Main Solar ProductsSolar home light :- Street Light :- Used as street light Solar Generator : -Used to store electricity

Used to light up your home

Solar water heater :-

Used to heat the water. Solar pumps :- Used to pump the water


Solar Business1. Business Opportunities Types of Solar Business Opportunities Revenue Valuation, Sales, Market Opportunities Skills required

2. Solar Power Projects Types of Solar Power Projects Revenue Valuation, Sales, Market Opportunities Skills required

3. Solar Product Manufacturing Steps to Manufacture Solar Product Revenue Valuation, Sales, Market Opportunities Skills required


Business Opportunities

What is Business Opportunity ?It is the set of products, information, tools, rights, people buy to start the business

Types of Business Opportunities FranchiseDistributorshipDealershipsSub-DealersChannel Partners

Types of Solar Business Opportunities FranchiseDealershipsChannel Partners


Solar Business Opportunities Franchise :- It is defined as, Right to sell company product or services in particular area. Below diagram describes the same

Franchisor :- Who

provides Franchise

Customer willing to

buy Franchise

Partner with Franchisor and

provide Franchise Fee, Commission on sales to Franchisor

Once Parnetnered,Franchisor will provide Products,

Right to use there brand,

Equipment'sTraining

EmployeesMarketting


Solar Franchise ValuationBelow tables indicates the Solar Franchise Revenue and Market valuation (How worth Franchise is ?)

Investment(Range)

Avarage Margin ROI Liking Cusotmers Minimum Earning Per Day

50k to 5ak 30% 30% Cities/Villages where power goes off frequently, House where sun light reach is low,Commercial buildings, Godowns, Streets where no lights are there, House where more power is consumedCustomers interested in saving electricity bills

If very low cost product is sold with a min margin of 30% at a rate of one per day then minimum of 500rp/day can be earned.


How it works :-

Partner with Company which provide franchise. Partnering involves mutual agreement sign off between company and the person willing to buy franchise. If your firm not registered, company will provide guidelines on how to proceed

Once partnered, You need to invest to buy some products, for security deposit, Showroom design and other things

When you buy the products, you will buy the product with 30 percent less than MRP (Maximum Retail Price) but you will sell the product at MRP price to customer.

Example :-Suppose a Home Light cost MRP 2000rp, Then a franchise will buy that Home Light at 30% less than MRP, Which is equal to 1400rp. Then same Home Light is sold to customer at 2000rp. Franchise will earn a profit of 600rp

Note :- Transport depends on company, they might provide or might not.Note :- Technicians and Installation help depends on company. Either they may provide technicians or you may hire. There Salary/Commission depends on company.


Solar Business Opportunities

Dealership :- It is also similar to franchise and defined as, Right to sell company product or services in particular area. But some differences are there. Below diagram describes the same

Manufacturer/Distributor

Customer willing to become Dealers

Partner with Manufacturer/Distributor

and buys product

Once Partnered,Manufacturer/

Distribut will provide only the products and

sometimes training (Unlike what

Franchise provides)


Solar Dealership Valuation

Below tables indicates the Solar Dealership Revenue Valuation (How worth dealership is ?)

Investment(Range)


On need basis (Means when customer wants the product)

15% to 50% 15% to 50%

Cities/Villages where power goes off frequently, House where sun light reach is low,Commercial buildings, Godowns, Streets where no lights are there, House where more power is consumed,Customers interested in saving electricity bills

If very low cost product is sold with a min margin of 15% at the rate of one per day then minimum of 300rp/day can be earned.


How it works ?Partner with Company which provide Dealership. Dealership involves mutual agreement sign off between company and the person willing to buy dealership. It works like belowIf Firm Registered

When you buy the product, you will buy the product with (range 15 to 50) percent less than MRP but you will sell the product at MRP to customer.

If Firm Not RegisteredWhen you buy the product, you will buy the product with MRP price and sell the product at same MRP

to customer. Your commission or margin will be provided by company at later point of time through cash or deposit in your personal account.

Note :- Transport, installation depends on how much customer order you have. It also depends on how much margin/commission company will provide. If they provide more commission like 50%, then transport and installation should always be taken care by dealersNote :- Technicians and Installation help depends on company. Either they may provide technicians or you may hire. There Salary/Commission depends on company.


Solar Business Opportunities

Channel Partners/Freelancer :- Here you just provide customer lead who is interested in buying solar product. Once you close that customer you will get the commission through cash or deposit in personal account

Manufacturer/Distributor/Dealers

Customer willing to become Channel

Partners

Partner with Manufacturer/Distributor/Dealers and provide just

customer leads

Once Partnered,Manufacturer/

Distributor/Dealer will provide the

commission


Solar Channel Partner Valuation

Below tables indicates the Solar Channel Partner Revenue avaluation (How worth channel partner is ?)Investment(Range)


Not required or very minimum investment

15% to 20% 15% to 20%

Cities/Villages where power problem frequently, House where sun light is low,Commercial buildings, Godowns, Sreets where no lights are there, House where more power is consumedCustomers interested in saving electricity bills

If low cost product is sold with a min margin of 15% at the rate of one per day then minimum of 300rp/day can be earned.


How it works

Partner with Company which provide channel partner/Freelancer. channel partner/Freelancer involves mutual agreement sign off between company and the person willing to buy channel partner/Freelancer.

After you become channel partner. You need to provide customer lead, Company or dealers will take care of product sale to the customer which you provided. Once they sell the product to the customer, Your commission or margin will be provided by company at later point of time through cash or deposit in your personal account.

Note :- No need to worry about transport or installation. This will be taken care by Company or Dealers


Skills RequiredUnderstand product and its benefit to customersUnderstanding the place where generally product can be soldUnderstanding the targeted customersLearn to impressive talk (must imp)Learn to catch customer attentionLearn to convince the peopleFlexible to move around to different areasHandle technicians and other people come across the businessNeed to study complete marketing strategy offline and onlineReady to invest, should have space for showroom

Note :- It is always better to go with channel partner initially to get knowledge about product, market, customer etc. This will provide a exposer to solar business and you will get good experience to going forward in this business


Difference Between various Solar Business Opportunities Attributes Franchise Dealership Channel PartnersInvestment & Margin Includes investment (for setup,

products, man power, licensing, training, marketing) and Margin is huge

Investment is product purchase and small setup fee and margin is huge/good

Almost no/very minimal investment. And margin is good

Business Model Should fallow same business model as parent fallows or suggest

Here different business model can be followed

One business model which parent mfr/dis suggest

Fee Franchise Fee needs to be paid to Franchisor

No fee needs to be paid to Mfr No fee needs to be paid to Mfr

Sale Will be entitled to sell only his franchisor products

can sell multiple mfr/distributor products

Can only sell parent company products but can also become channel partner for other mfr or also become distributor

Competition No competitor will be present within some region for same company

Competitor might exist for same company, not garenteed

Competitor might exist for same company,, not garenteed

Help Mfr will helps wherever it is required

Not much help from mfr Not much help from mfr

Solar Power ProjectsBefore going to solar projects, Lets understand some of the terminologies

What is solar power?Solar power is converting sunlight into the electricity using PV (photovoltaic) panels

What is photovoltaic panels?Photovoltaic is a method of converting sunlight directly in electricity. Photovoltaic panels is the product used for this conversation.

What is Solar Projects ?Solar Projects means the project which involves in electrifying the house/commercial or a village etc using solar energy

Types of Solar Power ProjectsOff-Grid InstallationGrid –Tie Installation


Off-Grid electric Installation

It is one of the schemes used in the solar power generation method. In this scheme, Generated electricity from solar energy is not supplied to main electric grid or connected to main electric grid. Fig below explains the same.

Below figure shows how Off Grid Solar Electric Install Works

Products involved in this type of Installation.

Solar panel modules :- These panels are photovoltic panels which convert sunlight into electric energy.Battery :- These are rechargeable batteries, That is these batteries can be rechargedCharge controller :- It links solar panel, battery and electric load. It take cares charging or de-charging the batteryInverter :- Converts DC currect to alternate current.AC Loads :- These are the devices which run with AC CurrentDC Loads :- These are the devices which run with DC Current


What this business Involves ?

This business involves in electrifying house or commercial using solar energy.

This business works as below, If house or any commercial building wants to get electricity from solar panels, first thing you have to do is to

study how much kilowatt hours electricity they use per month Next understand how much electric power they want to generate from solar power. Lets say they want 100

percent. Then determine how much watt solar panel is required to electrify completely. Solar calculators are available to determine how much watt solar panel is required based on there

consumption. Based on the calculator result, Need to get help or work under experienced solar grid installaler for few

installation to get practical experience of it. Also you need to get the knowledge about Battery Sizing, Inverter Sizing and Charge controller.

Sizing depends on how much voltage and amps the products are using. This experience will come by experience with installation


Solar Power Project Off Grid ValuationInvestment :-

This can be done in two forms

-Work as channel partner and just provide customer lead who is interested in solar off grid installation. Manufacturer will take care of installation and provide you the commission out of it

-Purchase all items from manufacturer and take care of installation. Investment(Range)

Avg Margin Liking Customer ROI Minimum Earning Per Month

Depends whether you install or MFR install. For 1kw general cost is 1,20,000

15 to 20% (Depends whether you install or MFR install. If you take care of installation you can earn more percentage of margin)

Commercial buildings, Farm land, Houses

15% to 20% (again depends on installation)

If minimum one project is done per month, A min of 15000rp can be earned. This depends on how much watt power you install. But can gain handful of money from lakhs to even crore with experience

Grid Tied Solar Power InstallationIt is one of the schemes used in the solar power generation method. In this scheme, Generated electricity from solar energy is supplied to the main electric grid or connected to main electric grid. Fig below explains the same.

Below figure shows how Off Grid Solar Electric Install Works

Products involved in this type of Installation.Solar panel modules :- These panels are photovoltic panels which convert sunlight into electric

energy.Battery :- These are rechargeable batteries, That is these batteries can be rechargedCharge controller :- It links solar panel, battery and electric load. It take cares charging or de-

charging the battery Inverter :- Converts DC currect to alternate current. This inverter is connected to main grid. When

solar energy is less and not able to charge the battery then battery is charged using main grid. If excess power is generated by solar panels and battery is fully charged, then excess energy is sent to grid.

AC Loads :- These are the devices which run with AC CurrentDC Loads :- These are the devices which run with DC Current

How this business works :-It is similar to off-grid installation but necessary arrangements needs to be made such that some amount of electric energy generated by solar energy can be supplied to Main Grid


Solar Power Project ValuationInvestment :-

This can be done in two forms

-Work as channel partner and just provide customer lead who is interested in solar off grid installation. Manufacturer will take care of installation and provide you the commission out of it

-Purchase all items from manufacturer and take care of installation. Investment(Range)

Avg Margin Favorable Loc ROI Sale/day/month

Depends whether you install or MFR install. For 1kw general cost is 1,40,000

15 to 20% (Depends whether you install or MFR install. If you take care of installation you can earn wtill more percentage of margin)

Commercial buildings, Farm land, Houses

15% to 30% (again depends on installation)

If min one project is done per month, A min of 15000rp can be earned. This depends on how much watt power you install. But can gain handful of money from lakhs to even crore with experience


Skills RequiredSkills required to start this businessThorough knowledge on complete grid installation processNeed to get help or work under experienced solar grid installer for few

installation to get practical experience of itCustomer Convincing capacity Move around to different areasAbility to catch the customer attentionThorough explanation on what customer benefit out of it


Solar Manufacturing UnitWhat is Manufacturing Unit ?Manufacturing unit refers to the organization who is involved in manufacturering the product.What is Solar Manufacturing Unit ?Solar Manufacturing unit refers to the organization who s involved in manufacturering of solar products.Pre Condition Before starting Solar Manufacturing UnitNeed to have very good knowledge of solar products and how it is manufacturedIt is always better to start with Solar Home Light and Solar GeneratorSolar water heater, pumpset, street light requires more investment and complex

dependent products like light pole, tubes, high watt panel etc.Note :- Here solar products manufacturing refers to assembling the products. It is not about solar panel manufacturering. Solar panel Manufacturering required space, chemicals, Govt approvals and other things.


Steps to start Solar Manufacturing Unit :-Register the firm. Get guidelines from Charted Accountant on

how to register the firm as manufacturing unitStudy the solar products and its dependent products (like

battery, charge controller, inverter etc)Get knowledge of electrical concepts, wire connections, soldering

etcOnce all the things are done, buy the required products from

either manufacturer or distributors at low rate. Even if you buy in bulk rate will still get lower

After buying the things, start assembling the products to make one solar product.

Market the product which is obtained by assembling multiple products


Solar home light manufacturing:-

To manufacture/assemble the solar home light, need following below products (which were used in grid installation)

Battery, charge controller, inverter, panel, box, wires, switches, plugging point, any other points like chagrin point, unit name, stickers

Once all the above are in place assemble them in box. Panel should be outside the box as it will be on the top of house

After this, name the box using sticker and test it and then market it

Note :- Take care of “over battery charge”


Solar Home Light Valuation

Investment(Range)

Average Margin Liking Customers ROI Minimum Earning

Purchase all the items by manufacturer or distributor at low rate

75% to 100% depends on where you buy the products and how much you buy

Houses where sunlight is less, Village house where power goes off,Godowns, Houses where more power is consumed,Customer interested to save electric bill

75% to 100%

If min one product is sold per day, A min of 1500rp can be earned. This depends on how much watt power you install. But can gain handful of money from thousands to even lakhs with experience


Solar generator :-

Generators are used to generate and store electricity

Solar Generators are used to store the electricity generated by Solar.

You can design generator by packaging following below products under one box

• Battery• Charge controller• Inverter• Plugging pointsSolar panel should be outside the box

Note :- Also you need wire connections, soldering, switches as part of generators etcNote :- Need to take care of “over charging”


Solar Generator

Investment(Range)

Average Margin Liking Customers ROI Minimum Earning

Purchase all the items by mfr or distributor at low rate

75% to 100% depends on where you buy the products and how much you buy

Houses where sunlight is less, Village house where power goes off,Godowns, Houses where more power is consumed,Customer interested to save electric bill

75% to 100%

If min one product is solad per day, A min of 1500rp can be earned. This depends on how much watt power you install. But can gain handful of money from thousands to even laks with experience


ConclusionThis document just provides the basic information about solar, solar business

opportunities, solar power projects and solar product manufacturing.This document highlight the details specific to Karnataka Solar Manufacturers.

Data taken from analyzing within KarnatakaThere are lot of solar manufacturers and distributors available in market. Each

one of them will provide atleast one of the business scheme mentioned in the document

There are lot of other business that can be started with respect to solar energy. We are coming up with one more document for the same.

Also we are coming up with one more document with respect to Solar, Current Government and Economy

All the businesses mentioned here are not guaranteed for success, unless it is executed actively with hard work and passion


THANK YOU

Environment

Solar business