expedia solar industry - solarwirtschaft
TRANSCRIPT
Off-grid market in Developing Nations Case Study of Pakistan.
Rural ; 60%
Urban; 40%
Population
Rural Urban
[SERIES NAME]
[VALUE]%
[SERIES NAME]
[VALUE]%
0
20
40
60
80
100
120
Rural Urban
% access to Electricity
Electricity W/O Electricity
51 Million people without Electricity 110% of Population of Spain
Why not connect them with the grid?
• There is a shortfall in production of energy nationwide.
• Non productive loans.
• Increasing generation
• Transmission infrastructure Cost of
Infrastructure
• Low income household
• Theft and Over Usage
• Bill recovery
Cost Recovery
Rural Area
Renewable energy / Solar + Storage
1. Government and NGO’s want to give access to electricity.
2. Uses. Charging Cell phones. (Most important)
3. Students studying at night ???
4. Increase in earning capacity • Women sewing clothes
• Dairy product processing
• No infrastructure available for such growth
5. One Fan and 3 lights system is most common.
.
Issues with Adoption of Off Grid systems
• New product type
• Non productive loan
• Large ticket $320
• Payback 24- 48 months
• Certification of Equipment/ non performing loan
• Regulate – Facilitate – Monitor
• Reduce regulatory overhead.
• Tools for regulation – Customs + on field
• Logistics – low population density - Transportation
• Distribution Chain – Stocking
• Man Power
• Working Capital
• Reach to rural areas – MF network
• Poor experience
• Low cost & low quality
• Expect fast service
• Different configurations required
Demand Side Supply Side
Microfinance Regulators
Current solar sales process
Site
Analysis
1.5 Hr
Equipment
1 Hr Financing
1 Hr
40x Reduction in Cost
Online Market place with Equipment providers and Banks
8x Reduction in time
Step Robotics
Market Place
Renewable energy / Solar + Storage
Equipment
Providers 1
2 2
Solar Marketplace
Supplier 1
Supplier 2
Supplier 3
Bank 1
Bank 2
Bank 3
Client
Pro
posal
Step 1
Site Analysis
Step 2
Select Equipment & Financing
Step 3
Client Report
Make a sale in 30 mins while staying on the Client Site
How do we fix the issues
SI- EcoSys
Solar Shading & Site Analysis
Production Payback and
Savings
Ordering + Finance
paperwork
Equipment Providers
Lease and Financing
Government Management
SI- EcoSys
Solar Shading & Site Analysis
Production, Payback and
Savings
Equipment Providers -
Marketplace
Lease and Financing - Marketplace
Installer Management
Portal
Utility Interconnection
and Net-Metering
Step Solar comprises of an eco system with these modules
Step Solar tracks serial number of all the solar panels on GIS Map. This helps
1) eliminate counterfeit panels
2) reduces fraud of reusing the same panels for multiple rebate collection.
How does the Sales flow work
Reduction in inventory requirements
Sale of System
Processing of Loan
Microfinance
Equipment Shipped
Equipment Installed
Sales and Support
Regulator Equipment Quality Check
Vendor •Apply for Approval OEM
Government Board
•Approves Equipment (Different standards)
• Enters all Serial #
Installer • Equipment Available to Installer
Performance Monitoring
•Monitor performance of Equipment
Current Sale Channel
OEM
Supply, Sales
Support Company
Consumer
1. Vertical company
2. Difficulty in growth
3. Low connection with locals
Modified Sale Channel
OEM
Distribution Company
Sales & Support Local Individual
Consumer
1. Train local individuals via vocational training
2. Additional revenue for Community
3. High connection with local community
4. Scalable business model
How to collaborate with PMIC
Si- EcoSys (by Step Robotics)
AEDB NGO/Donors Microfinance
Network Ministry
Installer Equipment Provider Local Micro Finance Bank
Owner
OEM
Divisional Distributor
Regional Sales
Regulator / AEDB PMIC / Microfinance
Local Micro Finance Bank
Approval Paperwork
A proposed flow
Issues with Adoption of Off Grid systems
• New product type
• Non productive loan
• Large ticket $320
• Payback 24- 48 months
• Certification of Equipment/ non performing loan
• Regulate – Facilitate – Monitor
• Reduce regulatory overhead.
• Tools for regulation – Customs + on field
• Logistics – low population density - Transportation
• Distribution Chain – Stocking
• Imported products – No certifications
• Man Power
• Working Capital
• Reach to rural areas – MF network
• Poor experience
• Low cost & low quality
• Expect fast service
• Different configurations required
Demand Side Supply Side
Microfinance Regulators
Contracts and MOU •Step Robotics and Govt of Pakistan
•MOU Step Robotics and Banks
•MOU Step Robotics and Equipment Providers
•German Solar Association.
Areas for expansion
• Working with different countries to automate the Net-Metering/interconnection process.
• Working with Utilities for Solar Production and Demand Adjustment.
• Providing the infrastructure to different countries.
400 installers + 3 new installers everyday
The most accurate shade analysis tool in the market
University of Oregon
We are here to help grow the industry by making commonsense improvements
Thank you for your time
Backup Slides
US$ 2400 US$ 400
Manual Tool
Competitors
Solmetric Acquired for USD 12M
Solmetric Sun Path
Finder
Tool Step Robotics Sunpath finder Solmetric Satellite based
Availability Yes Yes Yes Limited (LIDAR)
Year produced 2016 1980 2007 No date
Time for site analysis*** 25 mins 4 hours 3.5 hours 2 hours
Manual entry of data No Yes Yes Yes
Connect to computer to get results No MSWindows MSWindows Yes
Accuracy of Results 98% from Ground
Truth.**
Moderate High Low +- 3.5% seasonal
with LIDAR Data. No
hourly shading numbers
Cost $50 $400 $2400 $3000/user
Immediate quote generation Yes No No No
Integration with equipment providers
and leasing companies
Yes No No No
Online Market place Yes No No No
TOU production analysis Automatic Manual* Manual* No
*Requires a lot of manual data entry
** Independent study of accuracy carried out by Solar Radiation Monitoring Lab, University of Oregon.
*** Requires the installer to drive back to the office and generate a proposal
Solar Install Cash Flow for Pakistan
$0
$500.000
$1.000.000
$1.500.000
$2.000.000
$2.500.000
$3.000.000
$3.500.000
0 5 10 15 20 25 30
Cash Flow with Solar- NUST Feasibility
With Solar Without Solar
Solar electricity = 48% cheaper than grid Electricity is Free after 12 Yrs
Key Sales Numbers Cost of Marketing
Revenue
• Year 1 with 5% market Share 3M USD
• Year 2 with 10 % market share 8 M USD
0,6
4,2
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
Step Robotics National Avg
Marketing spent by Equipment Providers as % of Revenue
0,4
4
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
Step Robotics National Avg
Marketing spent by Finance Companies as % of Revenue