A Solar PV Journey

ABOUT US

We are a multi-skilled provider of a broad range of sustainable solutions, to clients who are typically large commercial, industrial or retail property owners and tenants spread throughout sub-Saharan Africa.

Our value-added offer includes the design, manufacture and installation of high-quality Signage & Print, Solar PV, LED Lighting and Modular Construction solutions, all of which are delivered on-time at a competitive price.

Our factories, having combined areas totalling approximately 10,000 m2, are situated in Cape Town and Johannesburg. We have approved installers representing us in all nine provinces of South Africa, as well as various implementation partners based at strategic locations spread across Africa.

We are a Level 4 BEE-certified, wholly South African-owned company that employs more than 150 people.

The Romano Group was founded in 1952 by Romanos Romano and has since grown into one of the largest companies of its kind on the African continent.

SOLAR PV

Whether you are:• A client wishing to acquire a commercial-scale photovoltaic (PV) solar energy system,• A developer of a utility-scale solar park,• A consulting firm needing practical assistance, or• A property owner wishing to lease your land or roof-space for the purpose of housing a PV plantWe will make it all happen for you.

Our Solar PV division is an engineering, procurement and construction (EPC) contractor, specialising in the design, manufacture, assembly, installation and commissioning of ground or roof-mounted PV systems . Our engineering and implementation skills cover both the DC and AC sides of the system, including grid connection. We also provide comprehensive operations & maintenance (O&M) services to ensure that your PV plant continues operating at optimum performance throughout its 25-year or longerlifespan.

In partnership with our clients, property owners and financiers, we are also a developer of utility-scale PV solar energy facilities that produce and sell energy to the electricity grid.

OUR SERVICES

Our wide range of services includes: site surveys, site drawings, landlord negotiations, local authority applications, conceptual & detailed design, prototyping, manufacture, assembly, packaging & crating, logistics including transport & warehousing, construction & installation, operations & maintenance, system performance monitoring, and database management.

BLACK ECONOMIC EMPOWERMENT (BEE) , EMPLOYMENTEQUITY (EE) AND LOCAL CONTENT (LC)

Our BEE status is currently at Level 4, which means that our South African-based clients receive 100% procurement recognition towards their own BEE scorecards when purchasing from us. Since 1st March 2009, 25.1% of the shares in our company have been and are still controlled by our HDSA (historically disadvantaged South African) employees.

We have always promoted EE practices. More than 80% of our executive and middle management staff, and nearly 100% of our operating staff, are HDSA employees.

The Romano Group is a wholly South African-owned company and therefore all added-value services that we provide contribute 100% of the LC to projects that we undertake in South Africa.

Our in-house freelancer and subcontractor development programme, which has been operating successfully for two decades, has been a major contributor to our BEE, EE and LC scorecards. Under this programme approximately 50% of our value-adding activities are undertaken by a collective of micro enterprises, most of which are owned and operated by former employees. In most cases we have contributed to thedevelopment of these smaller businesses through financial assistance and training.

How did the Romano PV journey start?

• Remote location signage enquiries• Energy reduction enquiries from corporate clients• In-house research, development and recommendations• CEO with a keen interest in alternative energy and

environmental issues

Romano – A South African PV pioneer

Most people will recognise the Upington Solar Park conference on 28th and 29th October 2010 as being the kick-off point which launched the solar PV industry in South Africa.

It is interesting therefore to note that by the time that milestone in the South African PV industry timeline had been reached, the Romano team had not only tested their PV knowledge on a number of small projects and completed designs for two commercial sized PV projects, but had already commissioned the first commercial PV installation of it’s size in the country.

Romano has been represented at all of the key industry conferences and shows over the past years and has been actively involved in industry associations which see industry colleagues and even competitors working together to the collective benefit of the PV industry as a whole.

Some examples of Romano’s PV installations

Upcoming and potential future projects include Eskom Megawatt Park plus a commercial pipeline of

30MW.

What are the benefits of the rooftop / developed land PV industry?

1. Industrial and commercial buildings such as supermarkets, factories and warehouses have large amounts of unused roof space. Forecourt canopies and service station roofs are similarly untapped resources.

2. There are typically large saving opportunities for industrial and commercial businesses during sunlight hours, especially in industries which trade 7 days a week.

3. Savings are significant for high energy users (refrigeration, aircon, heating, machinery, compressors, pumps and lighting).

4. PV can be configured to operate in conjunction with generators and thereby save fuel costs when there is no utility power.

5. Rising cost of electricity supplied by utilities is in many cases in excess of the Eskom 8% and future increases are uncertain. It is possible to fix a portion of one’s future energy bill up front with PV.

6. Solar PV is cheaper when measured over the life of the system.

A little known fact about the history of alternative energy in South Africa is that the first ever commercial PV installation in this country was installed on a service station forecourt near Johannesburg.

One of the team involved with that project was none other than the Deputy Director General of the Department of Energy.

Solar PV generators on forecourts has been successfully implemented in Europe over the past number of years.

A rollout program in Italy that has reportedly been run since 2010 has included installations on forecourts of many leading companies with successful outcomes.

Similar installations have been completed in Spain and England which have led to PV being included in wider energy saving programs.

Ways to acquireWays to acquire a Rooftop / Forecourt a Rooftop / Forecourt PV systemPV system

A. Outright purchase using own cash resources B. Outright purchase using bank finance

C. Power Purchase Agreement (PPA)

A. Outright purchase using own cash A. Outright purchase using own cash resourcesresources

Client purchases the system using its own cash resources and consumes the electricity as it is generated by the system

As per Option A, except the Client purchases the system from the Supplier using bank finance.

Supplier owns and installs the system on the Client’s premises and sells the electricity generated by the system to the Client over a 20-year period, at more competitive rates than utilities.

After 20-years, Supplier cedes the rights of ownership to the Client for no charge.

Client receives at least another 5 years of free solar electricity.

A. Outright purchase

B. Financed C. PPA

Negative cash flow in first several years

Positive cash flow for most of useful life

Positive cash flow throughout useful life

Technology & financial risk borne by client

Technology & financial risk borne by client

Technology & financial risk borne by supplier

Client responsible for O&M and Insurance

Client responsible for O&M and Insurance

Supplier responsible for O&M and Insurance

2nd highest NPV after 25 years

Highest NPV after 25 years

3rd highest NPV after 25 years

1. Sustainable job creation2. Increase property value by improving its Green Star

rating.3. Accelerated Tax Allowances.4. Green marketing.5. Social responsibility.6. Potential sale of Carbon Credits.7. Potential Carbon Tax Savings in future.8. Distributed power generation at the point of

consumption = no additional grid infrastructure.

Sustainable job creationSustainable job creation

1. Small to medium projects in developed areas.

2. High number of potential project sites within a defined geographical location.

3. Potential for small businesses to enter the market and grow the industry on a small, localised basis.

4. Skills gained will be beneficial as the industry grows.

1. Corporate KPI’s2. Lack of awareness of the benefits of Solar PV3. Convincing utilities to allow back-feeding4. Convincing utilities to implement net metering5. Lack of technical standards6. Lack of training

Examples of practical project obstacles Examples of practical project obstacles experienced. . . experienced. . . • Electricity distributors around the country (predominantly local

councils) each have their own philosophy with regard to grid connection and feedback.

• Grid connection regulations have typically been prioritised within the council once a project is already underway, leading to a shifting of goalposts during the project.

• This in turn can lead to an unhappy client and could give the industry as a whole a negative image.

• The smaller the PV installation the larger the financial impact of having to provide an anti-feedback system, the cost of which is not proportional to the size of the PV generator.

The way forward….The way forward….• Work together with other industry players (supply chain as well

as competitors) to build the industry.

• Purpose is to create a sustainable rooftop PV industry that benefits all South Africans

• Promote an ethical, sustainable and environmentally-friendly industry

• Set standards for the industry

• Influence government and municipalities to support the industry

• Educate clients and give them open and honest information.

FeedbackFeedback and questions……..and questions……..

THANK YOU FOR THE OPPORTUNITY TO SHARE SOME OF OUR EXPERIENCE WITH YOU