Business Plan for Solar Energy System

Business Plan For Solar Energy System

Contents Executive Summary.......................................................................................................... Company Overview.......................................................................................................... Stage of Product Life Cycle............................................................................................... Industry Analysis............................................................................................................... Market Place Analysis.................................................................................................... Customer Analysis.......................................................................................................... Competitor Analysis........................................................................................................ Marketing Strategy......................................................................................................... Distribution Strategy....................................................................................................... Advertising And Promotion Strategy............................................................................... Operating Strategy......................................................................................................... Development Strategy.................................................................................................... Revenue Generation....................................................................................................... Legal Structure & Ownership.......................................................................................... Pricing Strategy.............................................................................................................. Financial Risks................................................................................................................. Exit Strategies................................................................................................................ Financial Analysis............................................................................................................

Executive Summary Company Overview. The Nixon Company will design solar electric plan for the underdeveloped areas where the electricity is still a hope for the people. Agriculture is the sector which affected by the less supply of the electricity the company will try hard to become the leading producer of the solar energy by installing the efficient solar electric systems at various places.

Industry & Marketplace Analysis. As per the survey reports of the great economists. The demand of electricity is high in May terms of the supply of the electricity. Nearly One fourth of the world wide population is abundant from the power of electricity. There is no electricity in these areas. The majority of the area is rural. The farmers and villagers are main survivors. As per the records the demand for the electricity has risen by 40 % in the past years and is expected to rise even more in the coming years. The demand might increase to three times. The company will try hard to position itself and help the environment socially with the effective solar energy system. The company will establish a plant in the Eastern region of the Abu Dhabi. The project will target the street lights and villagers to help them in irrigation.

Products & Services. Nixon will introduce such a system in the market which affordable in every term for class. The small families will be offered financing options so that they are able to afford the product and make the biggest use of it. The company will open various

distribution centers at various corners to make easy availability for the consumers. Seminars and workshops will be organized by the company to make people aware about the pros and cons of the product and how to use the product effectively to earn highest amount of benefit. This step will enhance the economic prosperity of the area and the country as a whole in the world market.

Marketing Strategy. The target area has a population of more than 3 million. As per the survey done by the company people nearly rare percentage of the people are able to afford electricity from the grid. The industrial companies take the advantage of the overhead grid lines and because of that the villagers remain abundant of the benefit of the electricity. Currently the alternative of the electricity is the kerosene, which is somehow equal in cost to the solar electric plant in the long run.

A solar electric system is reliable and gives more value to the customers as compared to the alternatives.

Operations and Development. In the month of august the Nixon will begin with its work. Experts will be hired to look after the designing of the solar electric system. One person in the team will look after the documentation process and the remittances. Whereas one will look after the relationships with the suppliers. One staff member will be responsible to look after the shipping process and one will look after the assembling of the

elements.

Management Team. Jaz is the founder of the project. He is an engineering graduate and has completed MBA in Entrepreneurship. He has been travelling in United Arab Emirates and has analyzed various suppliers for the partnership. The founder with its team will look after the process of the solar energy system and will make it a success in terms of value to the customers.

Summary of Financials and Offering to Investors. As per the financial statements the solar energy system will generate 1104000 $ in the second year as net income and 1385250 $ in the third year.

Nixon will require $20 million for the installation in the initial stage. The company will identify various sources of funds and will employ one person to look after the incentives from the government.

The

presence of the company will improve the economic condition of the area targeted and will increase the level of prosperity. The target customers will be well informed and will be able to earn more with the employment opportunities in the company. The company will able to bring a diversified change in the life’s of the people.

Company Overview

This project for Solar System for electricity is designed to make good for investors, customers and community at large. It is being developed to earn financially and to be technically feasible. Nixon, has come up with an innovative approach to increase the electricity utility.

Vision

Today the people are more educated and developed as compared to the previous time. Science has come so far in achievement that it sky is no limit for it. Technology has brought various tools to solve the problems of the people. The vision of the company is energy efficiency. Mission Statement: The Mission is to establish the product’s leadership in the market. The product will give the customer’s a desirable mix of quality. To ensure economic activity for the progress

Goals and Objectives     

The goals for the project are : Financially profitable concern Low risk for investors Safe opportunity Positive impact on society



To establish leadership in market



Increase sales thereby increasing the share price.



Creating a new market segment.

The Investment Opportunity

The basic problem of the households and other consumers is the electricity. Energy consumption is the basic need of an hour. There are varied opportunities in the industry. The sector is a driver for the future prosperity. So far United Arab Emirates investors it is a major area for investment. The growing development and energy economics has made the area real attractive one. The market study reveals that the sector has major potential. But eventually the growth rate is slow.

Strategy, Organization and Management

The company will target the existing contractors for working level who get disinterested because of the complex incentives, regulations and paper work . Keys to Success 

Availability of technology makes it economical



Experienced and talented staff



Customer Satisfaction



Availability



Quality services



Marketing of product

Products And Services

The company will make users get rid of electricity deficits. Through this product the company will bring renewable source of energy to everyone’s home. Nixon will offer electricity through solar means. This option will be popular amongst the street lights and the agriculture sector of the United Arab Emirates. Solar systems will be imported from Zuzho Solar Group Co. Ltd. Battery and charger will be purchased from distributors.

Solar Systems As per the research there are 2 types of solar panels available Mono crystalline Multi crystalline Though both the products are same but the company will target the Multi one as storage of battery ranges for two to three days in the case of Multi Crystalline.

Battery Lead acid batteries will be used for the storage of solar energy as these batteries have higher capacity in comparison to other batteries.

Charger This device will help to electrify even in the night hours.

Services Sale of Solar System for villagers. Rent solar panel for advertisement boards.

Stage of Product Life Cycle

Industry Analysis Over the past ten years, for instance, the demand for electricity has increased in a huge way. People in may areas are still living without the electricity. As per the research the world’s demand has increased by 42 % in these years. The various electricity experts says that the demand for electricity will get three times of this or even more by 2020.

Agriculture being the first area which is being affected by the less supply of the electricity in the areas.

The solar power system has many opportunities in the market as per the reports. The system has varied advantage over the competing systems. The major competitors are natural gas fired turbines and hydroelectric power. But both the sources are unable to produce as per the demands of the customers.

Market Place Analysis United Arab Emirates is amongst the powerful nations in the world. The country has political stability since the past many years and has multiparty government. United Arab Emirates has an economical growth rate of 3.5% over the past decades. The expected GDP is 5.5%. 24% of the population lives in rural areas which is quite a big percentage, meaning of it is that nearly 30 million people are living in

rural areas where electricity is a big problem.

Customer Analysis The eastern range of Abu Dhabi is like a dispersed village. Te result shows that there are many places where even people don’t even have centralized homes. Only 0.6% are electrified with solar system. The industries are using the grid systems whereas the villagers are still longing for electrified house. The people believe that the modernization is linked with the electrification. As a result many of the people in the area stood up to support the company in working.

Competitor Analysis The major thought while designing and implementing the solar power plan is the cost involved in the process. This is a basic reason why people think it is a luxurious process. So people chose to use kerosene and dry cells. But the fact is that both products almost cost the same if seriously analyzed. Neither of them is cheap. Some families use gasoline while others opt for genset batteries. The solar system has much advantage over them. They are not dangerous in use as compared to the crude oils. On the other hand the batteries are expensive so they need to be replaced.

A solar electric system is safe and is capable of illuminating the room with white light. The solar electric systems are reliable in comparison to others and require minimum amount of maintenance. Though the product is expensive but only if we look in the short run , if considered for long run the product economical.

Competing Service Providers PTL is providing solar energy solution in many parts of the middle east countries. The company uses varied current technologies in providing external lightning systems. The company has partnerships with many of the renewable energy companies around the world. Furthermore, there are few other organizations in the northwestern region offering solar energy equipments.

Marketing Strategy Strengths • •

Solar power is unlimited. Because a large area is required for installation our

• • • • • • •

company is assembling rooftops. Consumers are benefited by reduced retail electricity rates. Reducing brownouts. The system can be used worldwide. Reducing brownouts. Technology advancements have reduced installation costs. It can work with existing grids. The project satisfies government on the note of green revolution.

Weaknesses

•

The sunlight quantity is not constant at all time.

•

Weather forecast is necessary

•

Current rate of PV panel is low(but expected to grow )

•

Company can generate power during day time.

•

Legal hurdles – many states and many regulations.

•

Liability issues – damage due to installation.

•

Technical knowledge base staff needed at high rate.

•

Loss of copy of plan.

Opportunities •

Green revolution trend

•

Governmental incentives for green era.

•

Awareness regarding solar plants.

•

Global warming concerns.

•

Growing electricity demands.

•

Technology advancemements.

•

The industry will provide job opportunities.

Threats •

Other alternatives can be opted hydroelectric, geothermal.

•

Advancement in technology can make the product obsolete.

Market Opportunity

Many companies are in the industry of energy; this shows a clear mark of opportunity in the market. First predicted growth for electricity. According to the United Arab Emirates, the demand for energy is supposed to increase by 40% over the coming years. Second: Growing trend in the market of the green revolution.

Third: the power of energy by sun in one hour is more than the yearly energy consumption of the world.

Total Available Market & Expected Market Share

Extensive Testing: light soak, Hail ball tests to ensure performance in long run. Supply Demand Gap 1. Based on the official papers it can be judged that supply can be double the demand. 2. There is large gap between customers and solar products because of the Unawareness Dynamic changes in technology High installation costs involved

Target Market 1. Rural areas of Abu Dhabi, where the basic population is of farmers. 2. Around 90% of the villagers are still waiting for the electricity in their areas. 3. As agriculture is the main part of the economy, the electricity is the basic need for the farmers. 4. Electrification will increase, productivity, reverse the trends, will educate the people, growth will develop the market.

Distribution Strategy Various distributors will be contracted and many community centers will be used as an administrative cell for the company. Certain elements will be shipped from suppliers around the world. The company will try hard to look for the suppliers within the country so as to reduce the shipping cost. There will be separate department for handling the resources after they have arrived their destined point. The manpower will assemble the elements and will make them ready for the installation. Then these plants will be sent to various distribution centers so that it becomes easy for the customers to avail them. Workshops will be held to make the customers realize of the use of the product. With this the company will be able to gain more of the trust and confidence of its customers and will be able to acquire a larger market share.

Advertising And Promotion Strategy As the product is service based, so the company will basically rely on the word of mouth. Seminars will be conducted at various places and at various time intervals to attract the advertising agencies. Information will be updated on the web site so that customers are made aware of the product. Newspaper advertisements and bill boards are other options to be opted for promotion. More than 1000 people will be needed for the employment purpose this will be one of the biggest news and will definitely attract the audience towards reading the article of the company. As the target customers are basically from the agriculture background so the company people need to attract the customers through conversation. The visibility of the plant will itself call for advertisement. Brochures will be printed giving basic knowledge of the description of the product and financials.

Operating Strategy Operations strategy will take place in two stages: “Stage 1” will have a pilot program which will be a mere design of the concept. It will be implemented to just meet the basic requirements of being the Curtailment Service Provider. “Stage 2” will have a installation map of 1000 houses will be sized to generate revenues.

Stage One: in this stage there will be one person who will responsible for handling the relationship with the clients and suppliers, as this is the basic step in the implementation. The person will be responsible for contracts made with theses contractors. Another person will be responsible for developing the process line so that the agreements are handled in a streamlined manner. This person will also be responsible for handling the government relations. He will be looking after the permitting process so that the running process of the solar system plant is not affected.

Stage Two: the main objective will be to ensure the continuity of the process. The persons will be responsible for positioning the product and developing the staff across the market.

Development Strategy

The Nixon will be targeting to assemble a legal advisors team by the end of the market research activity. After the business plan revision the company will be looking forward for the alliances with various suppliers and venture capitalists in order to lower the cost of installation and for this purpose the company will be getting engage in the overseas transactions. There are four components of the product   

Harnessing of the energy Conversion of energy into electricity Conditioning of the electricity



Electricity is sent to the battery with the help of the charger for storage purpose.

The charger has the main objective of protecting the electricity from being damaged. The system connected with the battery receives the current. This system is able to provide electrification even in the night hours when there is no electricity. The company will establish centers for the customers to make them aware of the installation process and the handling process. Prototyping will also be done with project enhancement so as to make the work easier for the customer.

Revenue Generation Signing a bilateral contract with generation companies. In this case the transmission power will be in the hands of the company. Second, capacity payments are made in advance. This attracts companies to invest in new plant. Third, energy is purchased from the government for load reduction at prevailing market prices.

Milestones Stage 1: Conceptualization. Stage 2: Commercialization

Stage 1

•

August: Business Plan writing. By this time the business plan need to be written well and in formatted manner so that it can be sent to the managerial position holders to review the project highlights and to analyze whether it will be beneficial for them to invest in the project or not.

•

September- November: Staffing the board members. As per the requirement of the project the owner of the project, recruits the board members and thereafter these members elect the several staff members for their assistance and

working completion the staff is selected

based on the required skill criteria. As solar energy system is a new concept so company needs to hire those people who are capable of delivering the required information to the customers. As the first end employees are the first face of the company they need to well trained and personality wise developed.

•

September- December: sources of funds. In this time period the company needs to identify the sources from where they will be receiving the required funds for the installation of the project. The company might look for partnerships with suppliers so that they lower the cost.

There is a possibility that the project

becomes an attraction for the venture capitalists and he

gets interested in financing the project. This is possible when the company is deliverables are strong enough to portray a good image of the company and are able to show the advantages and benefits the project will bring along with its installation.

Looking at the current scenario the

possibility of venture capitalists option is high as the solar energy system is a new trend in the market and generally the venture capitalists look forward for such innovative ideas which are beneficial for them as well as for the society.

•

January: Legal work In this time period the company officials has to finish the documentation related with the legal works. Documents related with site plan, remittance, various taxes involved, should be done within this time period to avoid the last minute delay. The company needs to hire a legal advisor so that he is able to suggest which option will profitable in terms of legal issues.

•

February: Analyzing the Marketing Plan In this month the marketing team will come into operation and their major task will be to analyze the profitability of the marketing plan. They should justify, whether the selected target market is worthy? Whether the strategies opted for the target market will turn out to be beneficial or

not? If the analyzers identify any flaws in the marketing plan they should immediately inform the board members so that the constraints can be rectified if needed.

•

February –March: develop relationships with suppliers. In these two months the company’s staff members will be required to identify the suppliers for the solar energy system. The members should identify such suppliers who turn out to be beneficial for the company’s future. One member will appointed by the company officials to look after the relationships with the suppliers. Suppliers are the part of the foundation of the project so it is very much necessary to have strong and long term trust worthy relationships with suppliers.

•

April – August : Test the market plan In these months the marketing team will test the market plan on some part of the targeted segment, to identify the prospects of the project. This will be done to know the basic requirements of the customers and the offering of the project.

•

Sept.-April: Finalizing site and contracts. During these months the site plan will be finalized and various supplier contracts will be legally documented.

Company might enter into contract with the suppliers in the overseas market. This will involve many cultural differences and currency translation risks. So steps should be taken to mitigate the arising risks and contracts should be documented as and when the company finalizes the contract at certain conditions.

•

May : Documentation finalization. In this month all kinds of documents will be collected and prepared in a well organized manner.

•

June – September: Implementation

Legal Structure & Ownership Legal Structure

The company will be set up as a C-Corporation for the following reasons.



The installation of the system needs much higher investment so the company people need to adopt the C- Corporation to be on a safer side. The process will involve less liability on the part of the



investors. Second, transparency will be the basic mode in this structure.IPO



will be considered as an exit strategy. The C-Corporation is logical in defini9ng value of shares and compensation to owners.

Proposed Division of Equity Shares

At present the owners will held 60% of the available shares. The remaining 40% will be held by outside investors and advisory board members. In the later years the company can have different structure depending upon the need.

Advisory Board

•

Utility industry insider: A person who is familiar with regulatory requirements.

•

Residential Market Expert:A person having knowledge of industry cost and contacts with regional contractors.

•

Finance and Funding Expert: person who is aware about the Grants commission.

•

Regulatory Counsel: utility lawyer with experience.

Management Structure & Staffing

Sales Committee

Finance Committee

Operation Committee

Pricing Strategy Prices Affordability The revenues for the solar energy plant come from the supply of material and the efforts made by the staff in completing the project. Whereas in case of car manufacturing the revenue arises from the

sale of the product, i.e. car. Just like the cars are leased and financed same way the solar electric system companies should opt for such kinds of financing dimensions to be economical in a way.

Prices

The prices of installation are going down day by day as the people are becoming aware of the solar electric systems and finding it as a beneficial product. The government is also helping the companies coming forward such solar electric system plans.

The price value is based on the cost benefit analysis. The customers’ satisfaction

level

determines

the

price

value.

The

prices

are

determined with the help of the analysis of

The price of the product determines the return the investors will get. So it is a big question of concern. As the market prices are declining the investors are finding not much profit in the industry. But because of the lower price of the elements, the installation cost of the product has

reduced to a satisfactory level.

Costs In the starting the project team is able to manage in small cost which is needed for supervision but later on theses cost turn out to be overload on the company. As per the survey details in the Germany, cost in these countries turn out to be uncontrollable.

Labor costs The study related to labor class suggests that cost of labor is higher in United Arab Emirates but practically it depends upon the classification format. The cost depends upon the operating issues.

Soft costs As the awareness of the solar system is rising there has come a boom in the soft cost. Soft Cost includes the architectural fees and the pre and post construction fees. The soft cost is attached with the size of the project. The more the size the higher the cost. Higher costs does not reflect efficiency in the solar electric system business. Following are some of the soft costs involved:



Customer Acquisition marketing



Advertisement cost



Customer acquisition cost



System design cost



Permitting fee



Installation labor



Sales tax



Overhead profit



Other residual costs

The soft costs can be mitigated to certain levels if the company is managed at efficient level. If the labor employed works at the required rate and gives excellent output. If the finance team is able to manage the sourcing of funds. If the promotion is more of all based on the word of mouth.

The elements of soft cost in the marketing function. 

System Design Cost



Non-project specific marketing and advertising



Specific customer acquisition.

Incentives, Profit and Benefit

Government incentives The government gives incentives but these are of not much concern for the company. Though the facts say that the government is thinking of rising the incentives for the projects related with the solar energy

system, the basic facts lies within the global economics. The company will try hard to take advantage of these incentives offered by the government.

One member of the company will be held responsible for taking care of these transactions. He will have the responsibility of keeping an eye on the upcoming policies and scheme of the government.

Profit and Benefits The benefits which the people acquire from the solar energy system is much more important the profits which are actually in hand. The potential of profit is very much substantial in nature. Technology is one factor which has reduced cost to least level. Labor costs are negotiable and depends upon te trends in the market. Soft costs can be minimized by having good management staff and controlling power. Low prices are a gift for the owner or user of solar electric system On the other hand low price is a curse for the project installer. To build equilibrium is the key to success. Once the prices of substitutes go up, the benefit of having a solar system also goes up.

Solar electric system is a money saving

instrument and this instrument has a great future and likely to rise in the coming times. Social Concerns: The solar energy plant does not omit carbon. The plant offers employment to many. Every job is associated with a family and

satisfies their needs. In the United Arab Emirates, high costs exist because of the poor management of the organization. Which can be mitigated to a greater extent with help of proper management skills?

In addition the replacement of the project with carbon items is beneficial for the society as this will not affect the healths of the concerns. The motive of the company is not just to offer the product. They have a concern attached with the product that it does not harm the society of the people.

It can be concluded that the solar power system’s foundation are economically sound. And can be termed as efficient from the point of view of the investors. As per the cost benefit analysis, the customers will be benefited by the product to a greater extent so the product can be termed as a potential one from the point of view of the profit terms.

Capital Budget

There is always uncertainty about from where the funds will come. The company tries hard to identify the various sources of funds, to secure the prosperity of the project. In the initial time phase the company can go for loans from the banks or financial institutions , but there is a possibility that because of low level of pay back these sources may not show a positive sign but on the other hand there might be a possibility that venture capitalist get attracted by the

benefits involved in the project. Now days energy projects are gaining attention in the market, especially the solar electricity plants so there is a indication that the venture capitalist might find the project profitable. The company might opt for partnership with the solar panel manufacturers which can be a way of winning the supplier financing. There are suppliers in the market who wish to increase their market area and for that the fund the projects supply on installation basis. The company people can look forward angel funding too. Government funding schemes should also be countered in order to gain profit out of the policies and schemes launched by the central or state government. The business owners might think of diluting the ownership in the current stage but after two or three years when the company starts earning substantial amount of profit the owners might not be in mode of dilution of ownership or there is a possibility that after looking at the growing stage of the product, there might be a case that other venture capitalists might get interested in the business and may like to fund the business in the long run. The grants and the tax credits given by the government are very useful in terms of costing. Such offers can turn down the project cost too much level.

Financial Risks Currency Translation: the company will have suppliers from various countries and they will have different currencies. So the payments will be made in various currency modes. There is a possibility that the

currency value of country might fall in value at the time of transaction. This way the company will always be in a pendulum state where there might have profits from translation or they might occur losses. In order to reduce the translation effect the company can open a forex account through which all currency will be automatically converted to domestic currency. This forex account will help the company in translation. The currency exchange rate will be set as per the competitive market rate at that time. The company will be able to wire transfer the funds into corporate accounts of the banks of country.

By diversifying the

holdings the company will able to mitigate the currency translation effect in the long run.

Political and Economic Stability : The countries surrounding the middle east countries have experienced a great amount of ups and downs in terms of economic stability in the past years. Inflation has retarded the economic systems of most of the surrounding countries. As a major effect the country has a large unemployment state. United Arab Emirates has a good political stability structure which has been observed in past decades. The government has adopted various majors to bring back the economical prosperity. Because of these measures it has become favorable for the companies to initiate business ideas in the countries. This way the companies are hiring staff members in their companies for vacant positions which a great step towards fighting with the unemployment stage.

Irrigation: The people in United Arab Emirates depend upon the

agriculture in the country. Agriculture is dependent in may terms on the climate and many times on the market prices, this can be a major threat for the company. However the presence of the company will enhance the structure of the economy. The farmers will be able to get electricity in areas where there are no grids. The promise of value return will mitigate this risk to much extent.

Cross-Cultural: Cross- cultural risk is involved in every business which has no country boundaries. The distance between the two companies brings lots of cultural diffrenecs as risk. The company can hire a person to look after the daily overseas transactions so that the company is able to manage the day-to-day operations without the fear of the cultural risks.

Exit Strategies The founders of the company are completely dedicated towards the objective of earning maximum profits, to make the investors satisfied with their capital investors. If a company takes long time to be in a profitable situation, then IPO’s are launched in the very initial phase only. The market environment changes drastically which is necessary in order to attract the investors to show rapid returns on the investments made by them in the company for the product.

Option One: Option 1 is to become a Curtailment Service Provider to

improve the competitive position of a business concern In the energy market. This option is currently the major opted one in the market as the companies are dying hard to improve their green image in the solar energy market.

Option Two: option two suggest for a partnership with a manufacturer. A manufacturer who is willing to capture the dominance might find the company attractive.

Financial Analysis A base case scenario Below is the financial summary of three years. This shows a base for the product implementation future. The stakeholders will get an idea about the future prospects of the product.

This is a case which

shows the working calculation of how the project will work. Profit And Loss Account: profit and loss statements reveals that the company will earning 1104000$

after tax in the first year after the

installation of the solar energy plant. This is indeed a good figure. The company will be earning 1385250$ in the second year after installation. There is a sign that there might be possibilities that

venture capitalist get attracted by the benefits involved in the project. As the company is showing a good profit range the venture capitalists might feel to get associated with such green revolution project to make their image green. Cash Flow Statement: Cash flow is a statement which tells about the flow of cash of the business concern of the solar energy plant.. Company will decide the diversification of the cash or funds based on the analysis of the cash flow statement. The company might opt for continuation even if the company is not occurring with sufficient amount of cash balance. The statement of the company shows that the solar energy system project has incurred a cash balance of 1640000$ in the first year, 8280000$ in the second year and 8930000 in the third year. This shows that company is running on the right track and there might not occur any stage in the future when the company will be in a state of scarcity of funds.

Balance sheet: The company professionals have the job to look after the smooth running of the business because the investors look forward for the company balance sheet before investing in the company. The objective of a good investor is to identify the company which has good financial state so that the investor is able to avoid the disastrous stage. The fund managers of the company select the portfolio on the basis of analyzing the balance sheets of the different companies. So that they are able to avoid a major portion of the losses. The analyzers look forward whether the company has a good or bad balance sheet, good or bad business model and strong or poor management. Out of

the three the balance sheet concern is the first which is analyzed at priority by the fund managers of the company.

The balance sheet of the company shows that the shareholder’s equity for the company in the second year after installation is 502000$ and in the third year after installation is 2489250$

Profit And Loss Account

Profit And Loss Account Year 1

Year 2

Year 3

solar 1,500,0

2,500,0

2,500,0

00 solar 200,00

00 1,500,0

00 2,600,0

0

00

00

1,700,0

4,000,0

5,100,0

00

00

00

1,160,0

1,180,0

1,180,0

Cost of Installation Sold expenses

00 0 1,160,0

00 0 1,180,0

00 0 1,180,0

Total Cost OF sales

00

00

00

Revenues outright sale

of

installations income from installations

Total Revenue Cost Of Sales

Gross Margin Sales of

solar 200,00

installations

Cash Total Flow

360,00

0

0

200,00

360,00

0

0

360,000

360,000

Year200,00 1 Year2 230,00Year3 Profit After Tax General Expenses

-

1104000 1385250 0 0 240,000 700,00 710,00 602000 Depriciation 42000 96000 144750 Marketing Entity 0 0 750,000 900,00 940,00 Cash From 1200000 1530000 total Operation

0 560000

Cash

From

0

990,000

200,00 600,0010,000,0 1,000,0 Loan 5,000,0 10,000,0

Financing Cost Instruments Total Sources

00 0 00 0 00 00 Of 4,440,0 11,200,0 11,530,0 Cash 00 00 00 560,00 1,280,0 1,930,0 Changes in WORking EBITDA 0 00 00 Capital Inventory 0 420000 96000 0 144750 Depriciation -

Cash Flow

Accounts Receivables Construction

0 In 1,060,0

0

0

progress Prepayments Accounts payables Taxes

00 60000 0 0 1,000,0

0 0 0 -80000

0 0 0 -400000

Total

00

-80000

-400000

1,800,0

3,000,00

3,000,00

Fixed Assets

00 1,800,0

0 3,000,00

0 3,000,00

Total

00

0

0

2,800,0

2,920,00

2,600,00

00

0

0

1,640,0

8,280,00

8,930,00

00

0

0

1,640,0

9,920,00

18,850,0

00

0

00

Acquisition Of Funds

Total Use of Funds

Net Change in cash

Cash at the end

Balance Sheet

Openi ng

year1

year2

year3

ASSETS CURRENT ASSETS 164000

1885000

Cash Inventory Accounts Reccivables

0 0 0

0 0 0 1,060,0

9920000 0 0 1,060,00

0 0 0 1,060,00

Construction in progress Prepayment

0 0

00 60000 2,760,0

0 60000 11,040,0

0 60000 19,970,0

Total Current Assets

0

00

00

00

1,800,0

3,000,00

3,000,00

Fixed Assets At Cost Dep

0 0

00 58050 1,741,9

0 96750 2,903,25

0 96750 2,903,25

Net

0

50

0

0

Short term Investments

0

0

0

0

4,501,9

13,943,2

22,873,2

50

50

50

Total Assets Liabilities

0 And

Stockholder's Equity Current Liabilities Accounts Payable Corporate Tax Total

0 0 0

0 0 0

0 80000 80000

0 400000 400000

5,103,9

13,441,2

20,384,0

Long Term Financing loan

0

50 5,103,9

50 13,441,2

00 20,384,0

Total

0

50

50

00

Stockholders Equity Subscribed Cap. Loan Cap. Retained Earnings

0 0 0

0 0

0 0 -602000

0 0 1104000

Net Income

602000 -

1104000

1385250

Stakeholder's Equity 0 Total Staockholder's

602000 4,501,9

502000 13,943,2

2489250 22,873,2

Equity

50

50

50

0

Bibliography Harder, E. S. (2008). THE COSTS AND BENEFITS OFLARGE SCALE SOLAR PHOTOVOLTAIC POWERPRODUCTION IN ABU DHABI, UAE. Thesis . University of North Carolina.

Jim Krane. (2014). AN EXPENSIVE DIVERSION: ABU DHABI’S RENEWABLE ENERGY INVESTMENTS AMID A CONTEXT OF CHALLENGING DEMAND. JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY RICE UNIVERSITY. Regulation and Service Bureau. (n.d.). Electricity tariffs for large users in the emirate of abu dhabi. Retrieved from http://www.rsb.gov.ae/uploads/InfoElecTariffsLargeUsers.pdf . S.Borenstein. (2008). The market value and cost of solar photovoltaic,electricity production. CSEMworkingpaper . University of Californeia Energy Institute.