Business Plan 2203

Renew energy for your future
Vietsun Co, Jsc SOLARTRICITY

Y Shining your future
Huynh Quang Hung/ Pham Thu Nga/ Vo Thi Thu Ha
National University Of Singapore

SOLARTRICITY P a g e |1
Contents
Executive Summary ...................................................................................................................................... 5
1. General Company Description .................................................................................................................. 6
2. Product And Service ................................................................................................................................. 7
2.1 Product Overview .......................................................................................................................... 7
2.2 Features ............................................................................................................................................ 8
2.3 Specification ................................................................................................................................... 9
2.4 Installation Mode ........................................................................................................................... 9
2.5 Production ......................................................................................................................................... 10
Solar Panels ......................................................................................................................................... 10
Inverter ................................................................................................................................................ 10
Solar Battery ....................................................................................................................................... 10
Supporting Frames .............................................................................................................................. 10
Electric Wires...................................................................................................................................... 10
3. Market Opportunity ................................................................................................................................ 11
3.1. Severe Shortage Of Eletricity In Vietnam ....................................................................................... 11
3.2. Highly Compatible Region For Solar Power Development ............................................................. 13
3.3. Environmental Issue With Conventional Electricity Generation ..................................................... 14
3.5. Government Support ........................................................................................................................ 15
4. Market Analysis ...................................................................................................................................... 16
4.1. Market Segmentation And Target Market ....................................................................................... 16
Geographic Region ............................................................................................................................. 16

Demographic Groups .......................................................................................................................... 16
4.2. Demand From Individual Households ............................................................................................. 17
4.3. Demand From Offices ............................................................................................................... 18
4.4 Market Growth ............................................................................................................................. 18
4.5. Competition Analysis ................................................................................................................ 20
Competition Overview .................................................................................................................. 20
Product Comparison ....................................................................................................................... 21
Ability To Create Market Barriers: ..................................................................................................... 22
Competitive Advantage And Comparative Evaluation: ...................................................................... 22
4.6.Swot Analysis ................................................................................................................................... 23
5. Marketing Strategy.................................................................................................................................. 24
5.2. Strategy From Swot Analysis .......................................................................................................... 24
5.1. Marketing Mix 7 Ps ( Product – Price – Place – Promotion- Packaging – Positioning – People) ... 25
Product ................................................................................................................................................ 25
Price .................................................................................................................................................... 25
Place( Distribution) ............................................................................................................................. 26
Promotion ............................................................................................................................................ 26
Positioning .......................................................................................................................................... 27
Packaging ............................................................................................................................................ 27
People.................................................................................................................................................. 27
5.3. Marketing Plan ................................................................................................................................. 28
Marketing Plan .................................................................................................................................... 28

Marketing Budget ............................................................................................................................... 29
Sales Goals .......................................................................................................................................... 29
6. Development Strategy ............................................................................................................................. 30
7. Management And Organization Plan ...................................................................................................... 31
7.1 Company Organization ..................................................................................................................... 31
7.2 Staff Biography ................................................................................................................................. 32
7.3 Board Of Advisors: ........................................................................................................................... 33
8. Operation Plan ........................................................................................................................................ 34
8.1 Mobillization Phase .......................................................................................................................... 35
8.2 Design Phase ..................................................................................................................................... 35
8.3 Installation Phase .............................................................................................................................. 35
8.4 Maintenance Phase ............................................................................................................................ 35
9. Financial Plan.......................................................................................................................................... 36
9.1 Sale And Revenue ............................................................................................................................. 36
Sales Top – Down ............................................................................................................................... 36
Sale Bottom Up ................................................................................................................................... 38
Revenue Scenarios .............................................................................................................................. 39
9.2 Operating Expense ............................................................................................................................ 43
Commission To Distributors ............................................................................................................... 43
Marketing Expenses ............................................................................................................................ 44
Utility Expense.................................................................................................................................... 46
Labour Costs ....................................................................................................................................... 47

9.3 Investment ......................................................................................................................................... 50
Source Of Initial Investment ............................................................................................................... 50
9.4 Financial Statements ......................................................................................................................... 51
10. Appendix ............................................................................................................................................... 53
10.1. COGS Of Solatricity ..................................................................................................................... 53
10.2 Case Study For A Typical Household ............................................................................................. 54
10.3 Case Study For A Typical Office .................................................................................................... 58
10.4 Solartricity Specification................................................................................................................. 61
111. Reference ............................................................................................................................................ 64

EXECUTIVE SUMMARY
Vietsun Joint Stock Company is a company that imports and distributes the high quality product called
Solartricity, which generates electricity from solar power. Solartricity is proven to be environmentally
friendly and safe to human health. In the short run, we will market our product in Ho Chi Minh city, and
expand to other parts of Vietnam, as well as Mekong region, in the next 10 years. This business plan
provides an analysis of the solar power market in Vietnam and a description of our product, production
plan, marketing plan, as well as financial plan.
Due to the severe shortage of electricity in Vietnam nowadays, it is in urgent need of a more sufficient
and stable electricity source. Moreover, the stable and intensive radiation throughout the year will make
the implementation of solar power generation system in Ho Chi Minh city the most feasible.
To target the Ho Chi Minh city market, we identify two major segments for our product, which are
medium and high income individual households and medium and large offices because they will be able
to afford our product for its convenience and manufacturing purpose.
Our two main competitors are Selco Vietnam and Redsun. However, their products are expensive
because they import solar cells from Germany and France. For us, to lower the cost, we decided to import
from China, which is regarded as the cheapest producer of solar cells in the world yet its quality is
guaranteed for up to 25 years.
1. GENERAL COMPANY DESCRIPTION
Vietsun Joint Stock Company Imports And Distributes

The High Quality And Green Energy Named Solartricity
Which Generates Electricity From Solar Power.
Solartricity Is Proven To Be Very Environmentally
Friendly And Safe To Human Health. Our Company’s
Philosophy Is Supporting And Implementing The Sustainable
Energy Resource In Order To Improve Living Environment,
To Reduce Global Pollution And To Avoid Natural Resource
Exhaustion.
Our Target Customers Are Households And Low Rise
Buildings.
We Will Market Our Products In Ho Chi Minh City In
The First 5 Years And Expand To All Over Vietnam, As Well
As Mekong Region, In The Next 10 Years.
2. PRODUCT AND SERVICE
2.1 PRODUCT OVERVIEW
Solartricity is a green and reliable system which generates SOLARTRICITY
electricity when there is power shortage during black hours in
households and buildings. It is capable of creating electricity directly Solartricity comes with
numerous system options
by using the energy of solar radiation. Solartricity system consists of
to match with user’s
the following components: demand during black-hours
and even in non black-
hours. It can come with
small and medium demand
from 240 Wp to 1kWp,
which are able to generate
up to 5 kWh per day. For
larger demand like in
office, user can install a
bigger system for instance
3 kW, which supply 15 kWh
per day. The scale of the
system can be easily
modified and designed in
accordance to user desire
and demand
Figure 1. Solartricity Components

2.2 FEATURES
 Durability: Solar panels is perceived as a  Security of Supply: Sunlight is free and
durable material with the warranty up to 25 abundant. Hence, Solartricity can offer
years. Their deterioration is incredible stable virtually guaranteed access to electric power
in the long run: the efficiency only decrease continuously
10% after 30 years of  Little Maintenance
working SOLARTRICITY Required: Solartricity can sustain all
 Lifetime Cost Saving: kind of weather and conditions from
although the up-front cost snowy winter to hot summer. Little
of Solartricity is high, in a effort is put during operation period.
long run, it has proved to Periodic maintenance can be held
become more economical every 5 years to ensure the proper
than other power generators Key Features: working of the system and lifespan of
 Environment the battery
 High Quality Guarantee
Friendliness: It is an for more than 30 years  No noise generation: during
extremely clean energy  Lifetime Cost Savings the process of generating electricity,
 Unlimited Power
resource, and few other Source
Solartricity does not use any
power-generating  Zero Pollution Emission mechanical power to start up so it
technologies have as little  Zero Noise Generation does not create any sound or noise.
 Easy To Install and
environmental impact as Operate The user can enjoy a comfortable and
Solartricity. As it quietly  Friendly To quite environment and constant supply
Environment
produces electricity from of electricity at the same time.
 Little Maintenance
light, Solartricity produces Required  Slim and elegant design:
no air pollution, no solar panels of Solartricity will be
hazardous waste and no emission of design to match your house or building
carbon dioxide. Moreover, it does not aesthetic requirement. The natural and
consume liquid or gaseous fuels, which will dark blue colors may even enhance your
save natural resources property’s appearance.
 High Flexibility: Solar panels can be easily  Full access control features: smart
installed almost any place which expose to solar control panels is employed to
the sunlight. It has been widespread in monitor the charging and discharging of
remote and rural areas and shows impressive the solar panels, which will
success automatically ensure your house or
building is always full supplied with UL1703/CSA International, the United

electricity. Kingdom Accreditation Service (UKAS), etc.
 International identification: its components  Highly compatibility: its output voltage and
are imported and manufactured in current is particularly compatible with most
compliance to the international standards like of the utilities in households and buildings
the International Electrotechnical
Commission (IEC), SGS ISO9001:2008,
2.3 SPECIFICATION 2.4 INSTALLATION MODE

Here are some highlight speciations of Solartricity also comes with high flexibility
Solartricity. For more detailed specification, since it can be installed in different places in a
please refer to appendix 10.4 house or a building, which can subject to solar
Feature Solartricity radiation such as roof, wall, panels, facade,
ground, etc. Below are some common examples
Output Voltage 220 V
of installation mode of Solartricity:
Output Current 50/60 Hz
Electricity mode Direct current
Working Temperature -40 to 85
Surface Area need for 1 5-6
kWp (m2)
Electricity Generated by 5-5.5
1kW system installed
(kWh/day)
Efficiency (%) 15 Roof Integrated Solartricity
Lifetime (year) 30 -35
Price per unit ( USD/ W) 4.5
Installation mode Roof mounted,
façade and ground
Table 1. Solartricity Technical Specification
Façade Integrated Solartricity Ground Integrated Solartricity

SOLARTRICITY P a g e | 10
2.5 PRODUCTION
This section will give more details on how our product is manufactured and delivered.
SOLAR BATTERY
SOLAR PANELS
Battery is purchased from local
Solartricity‘s solar panels are made
suppliers (E.g Dong Nai Battery Company)
from Monocrystalline – the most effective
with the guarantee up to 10 years.
material for solar cell nowadays. We will
SUPPORTING FRAMES
import from China suppliers in Guangzhou
province, which is very close to Vietnam Vietnam is rich of iron source especially
with the cheap price and transportation fees. in Southern provinces. The Iron Triangle in
It will be shipped from Shenzhen port to Ho Saigon River will provide cheap and high
Chi Minh City port.. quality iron to construct frame for the
system.
INVERTER
Inverter is acquired from local suppliers •Import from • Local

China , Supplier
from with the quality ensured up to 15 years. Guangzhou
ELECTRIC WIRES Solar Solar

Panels Inverter
Local supplier will provide quality and
affordable electric wires for the system with
the price of about 0.2- 0.5USD/ m Solar
Battery
Controller
•Local •Import from

supplier China
Guangzhou
Summary of main component acquiring
Iron Triangle in Ho Chi Minh City

3. MARKET OPPORTUNITY
Electricity is a vital part of every country.

Especially, for developing countries like Electricity Demand in Vietnam 1990 – 2015 ( Source:
Fulbright Economics Teaching Programme,2008)
Vietnam, to boost the economy and business,
an available source of electricity is necessary. million MWh
According to forecasts of Dapice (2008), the 200
rate of growth of electricity demand in

150
Vietnam has been 15% a year since 2000,
100
with 77.2 million MWh in 2008.
However, due to the severe shortage of 50
electricity in Vietnam nowadays, we
0
recognize an urgent need of a more sufficient 1990 2000 2008 2011 2015
and stable electricity source.
3.1. SEVERE SHORTAGE OF ELETRICITY IN VIETNAM
With the annual growth of 6.5%, Vietnam electricity demand

will increase 15% every year in the next 5 years according to the
EVN (2011). It is anticipated that the electricity usage will be
doubled in 2015 from 98 million MWh in 2011 to 175 million MWh
in 2015. Despite government policy and effort, Vietnam still faces a
question of how to sustain constant electricity supply to business
sectors. According to the Electricity Vietnam (EVN) (2011), in the
first six months of 2011, Vietnam was short from 4 billion to 6
billion kWh. Electricity rationing in different parts of business
centres like Hanoi, Ho Chi Minh City, Da Nang has become a
common phenomenon during the dry season. According to Hung
Due to electricity rationing,
employee cannot work during (2011), Mr. Nguyen Phuc Vinh, the CEO of EVN, admits that even
office hour
with the import of electricity from China, Vietnam can only supply
70% of total electricity demand. Reflected in our surveys,
companies and office buildings express their irritation with the
frequent shortage of electricity during the peak months like May,
June, July, August and September.
Mr. Hoang Xuan Phu, a system administrator of the Cogini-

Vietnam, shared that his company must invest part of their
budget to buy a thermal electricity station to keep the work
going. Cutting and lacking of electricity impact greatly on
their business activities and efficiencies.
Many factories at Hanoi, Ho Chi
Minh City stop working for several Sharing the same view, Mr. Tomaso Andreatta, vice
days due to electricity shortage president of the Europe Trade Affair in Vietnam, recognized
that Vietnam is currently in an energy crisis particularly in a
severe electricity shortage. He emphasized that if business
sectors can buy electricity directly from EVN, they do not
mind paying high rates to ensure the electricity supply.
Households and residences are also in the same situation.

Electricity shortage usually may rise up to 10 hours per week.
It gets worse during the rush months: April, May, June, July,
August and September. It is not novel to find citizens living
Darkness becomes familiar with all together with darkness, hotness and stuffiness throughout the
the family in the big cities day.
As a result, a number of business and household owner

make a decision to buy fuel/diesel stations and inverters to
satisfy their needs. Even before the peak months, price of such
power generators increases dramatically two to three times. It
does not show any trend to decrease during the period and
some even increase more due to the running out of stock.
Without electricity, number of

elderly and children falling sick due
to the extreme heat is dramatically
increased
3.2. HIGHLY COMPATIBLE REGION FOR SOLAR POWER DEVELOPMENT
Vietnam is located in the South East Asia region

with tropical climate in the south and sub-tropical
climate in the north. The country receives long
average hours of sunshine per year due to its
advantageous location. The mean annual sunshine
hours in the northern area and southern area are 1800-
2100 hours and 2000-2600 hours per year respectively
(Le, 2009). Particularly in the south and central
location of Vietnam, the solar power is highly feasible
due to the consistent and high solar radiation
throughout the year from 4.5-6.5KWh/m2/day.
Moreover, comparing radiation ambient of

Vietnam to other countries and cities where solar
power is rampant, we recognize no dramatic
difference. Some areas like Ho Chi Minh City receive
even more solar radiation throughout the year.
Based on the color scale, Vietnam’s radiation

ambient is no less, or even more, than German or
Spain, which are using solar power in a large scale.
Central and Southern area receive higher solar
radiation comparing to Northern area
Average monthly sunshine hour Solar radiation comparison among

comparison among Ho Chi Minh city, Hanoi, Da Nang and Ho Chi Minh city
Shanghai and New York. (Source: Le,2009)
8 8
7 6
4
6
2
5 0
Novemb…
Septem…
Annual…
Decemb…
February
August
October
March
January
April
June
July
May
4
3 March
2
1 Hanoi (kWh/m2/day)
0
Da Nang (kWh/m2/day)
Ho Chi Shanghai New York
Minh City Ho Chi Minh City (kWh/m2/day)
From figure, the Southern region for instance Ho Chi Minh City has the most stable and
constant solar radiation compared to the other two regions. This stable and intensive radiation
ambient throughout the year will make the implementation of solar power generation in Southern
provinces such as Ho Chi Minh City the most feasible.
3.3. ENVIRONMENTAL ISSUE WITH CONVENTIONAL ELECTRICITY GENERATION
Both two main electricity generations in Vietnam: conventional thermal and hydroelectric source are
generating high toxin and pollutant, which threatens the nature environment and community health.
Conventional thermal source has been emitting toxic elements such as SO2, NO2, CO2, dirty smokes
into environment for many years, which results in a crisis in Vietnamese health status. The establishment
and construction of hydroelectric plants and dams contribute significantly to the damage of natural
resources and environments in Vietnam and Mekong region.
Current electricity generation methods, as a result, should be replaced with a new, green and
sustainable source of power to alleviate the burden on environment and risk on human health.
3.5. GOVERNMENT SUPPORT
Government announced its support to the implementation of the affordable Solartricity. In the
National Energy Policy Draft (2000-2020 period), it stated that the government “encourages development
of various forms of renewable energy and develops an effective energy sector in parallel with
environmental protection”.
In an international conference held at Hoa Lac Hi-tech Park, Ha Noi in November 2011, solar power
has been raised as a feasible and ultimate source of power in Vietnam. Benefits of installing solar power
system as well as its innovative features were presented at this event. Mr. Nguyen Van Lang, the Prime
Minister of the Ministry of Science and Technology, reinforced that Vietnam government will focus on,
direct and support projects and research which utilize the green energy such as solar power 1. At the
moment, government has allowed green technology and products to receive special tax exempts and
subsidy to encourage its development in Vietnam.
Moreover, according to Mong (2010), Vietnam is striving to reach the goal of cutting 20 to 30%
energy spending in the next 5 to 10 years and calling upon businesses to participate in investing in
renewable energy sources to minimize bad influences on the environment.
In conclusion, with the serious electricity shortage, disadvantages of traditional electricity generation
accompany with the strong support from government; greener and more sustainable alternative electricity
sources such as Solartricity should be developed so that problems above can be thoroughly solved.
1
http://www.baomoi.com/My-se-chuyen-giao-cong-nghe-nang-luong-mat-troi-vao-VN/53/3822589.epi
4. MARKET ANALYSIS
The following market research is based on both primary and secondary research. For primary research
reference, please refer to appendix 10.2 and 10.3.
4.1. MARKET SEGMENTATION AND TARGET MARKET
GEOGRAPHIC REGION HO CHI MINH CITY
As analyzed above, Southern provinces has high potential of

successful implementation solar power due to its stable and high solar
radiation throughout the year. In spite of their high potential in solar
power, solar energy has not been in a widespread area. In the past
five years, Vietnam government has only installed 100 household solar
power generating systems for 400 households in the Mekong Delta
province of Tien Giang and Tra Vinh. Urban region in Southern
provinces is totally left behind in term of implementing solar power.
As a result, we recognize Southern provinces, particularly Ho Chi Located in the Southern

Minh City, as potential places to start our business. As the biggest city region of Vietnam, Ho Chi
in Vietnam, having long solar hours per day, a high concentration of Minh City is the largest city
households and business sectors and limited company in the same and the most populous
business field, Ho Chi Minh City stands out to be a promising land for metropolitan area in
Solartricity. As a result, we will implement the business model in Ho Vietnam with 9 million
Chi Minh City first, and then expand our market to other Southern people. It is the economic
provinces and the whole Vietnam. Finally, our long term target will be and financial center of
other countries in Mekong region such as Laos, Thailand, Cambodia, Vietnam, with the highest
GDP per capita 2,899 USD
Myammar, etc.
in 2009
DEMOGRAPHIC GROUPS
We identify 2 major targeted customers in Vietnam for our products:
 Individual households: medium and high income household owners who want to have a sustainable
electricity source during black hours to high-income customers.
 Offices: which are able to invest initial installation payment in return for gaining partial
independence from the electricity company to avoid higher future prices or sudden power
interruptions.
Next, we will investigate more about these two types of targeted customers in Vietnam and Ho Chi
Minh City.
4.2. DEMAND FROM INDIVIDUAL HOUSEHOLDS
According to Le and Khai (2011), power cuts in Vietnam have occurred as frequently as twice a week
especially in big cities like Ho Chi Minh. Moreover, the total power cuts can be within the maximum 5-
hour-per-day limit. Therefore, in a week, citizens can suffer from 10 hours of power cuts at
maximum. From that number, we can see how inconvenient individual households are now.
Vietnam Households Stastitic According to General Statistics Office

(Source: General Statistic Office of
of Vietnam (2009), there are 22,444,322
Vietnam, 2009)
individual households countrywide. Number
Affordable households of strong and solid house which can afford
Low income households the Solartricity system is 46%. Price of a
medium system is 2750 It is a huge demand
54% 46% and potential for solar power as an

alternative source of electricity during
power cuts in Vietnam market.
Ho Chi Minh Households Stastitic (

For individual household segment Source: General Statistic Office of
in Ho Chi Minh City, according to Vietnam, 2009)
General Statistics Office of Vietnam Above medium and high income households
(2009), there are 1,824,822 Low and medium households
households, in which 339,245 strong
19%
and solid houses whose owners are
considered affluent. It constitutes to 81%
19% of the total households number in
Ho Chi Minh City.
4.3. DEMAND FROM OFFICES
.
In big cities like Hanoi, Da nang, Nha Trang or Ho Chi
Minh City, the number of offices are rising now. Therefore,
electricity demand from these offices will be increasing the
Ho Chi Minh city offices statistics near future.
Medium and big Small
For Ho Chi Minh City, there are 450,000 offices now.
However, only 57,800 of them are medium and big offices,
which can afford our system. According to our survey, a
13%
typical office demands 14,904 Wh a day during black hours.
87%
To supply enough electricity during black hours, it needs to
install a 3 kW system, which may cost 13,470 USD (refer to
(Appendix 10.3) If all the prospective offices install the
equivalent system, we can estimate that offices in Ho Chi
Minh city would have a value of more than 778 millions
USD. The market of offices in Ho Chi Minh City for
Solartricity would be very large
4.4 MARKET GROWTH
Individual households Offices

Identification Medium and high individual households Medium and large offices
Current Needs  Seek an alternative and stable  Can invest initial installation payment
source of electricity  Want to gain partial independence from
 Wish to satisfy their needs during the electricity company
black hours  Avoid higher future prices or sudden
power interruptions
Characteristics  Small and medium scale system  Medium and large scale system
 Cheap and reasonable price  Can invest high up-front cost
Market Value in Ho 763 millions 778 millions
Chi Minh City (USD)
Table 3. Summary of two major targeted customers

According to Burgerrmeister (2009), China’s government announced support for its photovoltaic
companies so that they can be the first suppliers of solar power at just $0.1/kWh. Moreover, as mentioned
in the government support part, Vietnam’s government started doing the same thing as well. Recently, the
Germany’s government also offered incentives to foster the installation of solar power in Vietnam with
long-term support2. Therefore, we can believe that the price of our product will decrease in the future.
On July 21, 2011, the Prime Minister of Vietnam approved the national power development plan for
the period of 2011 – 2020 with the vision to 2030, which strongly emphasized on renewable energy
development (Nguyen, 2011). Below is the chart of power capacity generated from different kinds of
resources by 2020 and 2030.
Projected power capacity in Vietnam from 2020 to 2030. Source: Mondaq (2011)
From the chart, we can see that power capacity generated by renewable energy, including solar power
will have increased to 9.4% by 2030. Therefore, the market for solar panel will be growing very fast. As
compared to 2009 when the total installed capacity of solar panels in Vietnam was 650 kW3, in 2011, it
increased to 1.6 – 1.8 MW4. Hence, it can be seen that the solar panel market in Vietnam is in the growth
stage of development. To sum up, the solar panel market opportunities for the future are very potential.
Thus, we can leverage these opportunities to expand our business.
2
http://www.eco-business.com/news/vietnam-plans-bright-future-for-solar-energy/
3
http://www.reegle.info/policy-and-regulatory-overviews/VN
4
http://www.eco-business.com/news/vietnam-plans-bright-future-for-solar-energy/
4.5. COMPETITION ANALYSIS
COMPETITION OVERVIEW
Our two main direct competitors in Vietnam are Selco Vietnam and Red Sun and many other small
ones such as Bith Energy, Devi Renewable, Greenfield, New Energy, etc.
Factor Vietsun Selco Redsun
oducts Solar system Solar system Solar system
Electric products, Electric products using
Hot water solar system solar power
Solar hot water system
Price Households: <$4,500 Household: $20,000 Household: 5,000 USD
Offices: 13470 USD for
3kW
Importing Material Solar panel, inverter, Solar cells from Germany and France Local factory
battery from China
Lifetime of the 30 years 30 years 30 years
system
Company Start-up US-based company 3 year old company
Reputation
Location Ho Chi Minh city Ho Chi Minh city Ho Chi Minh city
Product Image Commercial name: No commercial name No Commercial name
Solartricity
Strengths  Cheaper price  100% foreign-owned  Under a governmental
 Different targeted  Experienced due to long time body
market working in the industry  Has own a solar cell
 Has relationships with world panel factory
leading solar equipment
manufacturers
Weakness  Limited Capital  Too expensive  Young, has just been
 Start-up company  Focus more on electric products established since 2007
 Lack of reputation and hot water solar system  Relatively high price
 Focus more on electric
products, hot water
solar
PRODUCT COMPARISON
Compared to other electricity generators in the market, Solartricity has many extraordinary
characteristics as shown below:
Features Solartricity Diesel/Fuel Power Generator Inverter
Source of power Solar Radiation Diesel and fuel Electricity
Scale of system Varies from high to Varies from high to low Low and not for high power
low demand
Electricity mode Direct current Alternating current 50 /60 Hz Nearly alternating current,
50/60 Hz
Household utilities All household All household utilities Only some specific types of
utilities utilities
Ambient noise None High None
Toxic gases None High Medium
Risk of explosion None High Medium
Maintenance Every 5 years Every month 3 – 4 months
Instruction Easy – Automatically Difficult – usually need to Easy – turning on the inverter to
turn on start up by hand or by use
machine at first
5
Fees 4,500 USD/ 1 kwh >800 USD/ unit 300 USD/ unit
Life Span 30 – 35 years 7 -8 years 3-4 years
Lifetime Cost - - 3900 -14,400
Saving6(USD)
Table 2. Comparision between Solartricity and other power generators
Although the up-front cost of Solartricity is higher than the other power generators, Solartricity is
far more economical than other power generators due to its key features such as high durability ( up to 35
years of life span), minimum maintenance, non-toxin emission, no noise generation, no risk of explosion,
high fire safety and ultimate source of power. This has become the main reasons why products such as
5
For a typical household demand, refer to Appendix 10.2
6
Comparing other power generator with Solartricity. Refer to Appendix 10.3
Solartricity starts to attract a number of users in other countries such as the United State, Germany,
Japan, Spain, etc. Therefore, our product quality and competitive price, along with good marketing
strategies and customer service will be one of the most competitive edges we take advantage of to
compete with other competitors.
ABILITY TO CREATE MARKET BARRIERS:
 Products with lower price due to export from China.

 Expand markets to the North and Central Vietnam because of potential of sunshine hours. For
example, there are 1800 – 2100 hours of sunshine a year on average in the North (Le, 2009)
 Focus on urban areas.
 Improve customer service by regular surveys to collect data on current situations and feedbacks.
Moreover, we also realize that solar panel market is difficult to enter because there is proprietary
know-how in terms of technology. In addition, distribution channels are restricted since this is not
convenience product. Therefore, it can be concluded that entry barriers can benefit us while stopping
others in our tracks.
COMPETITIVE ADVANTAGE AND COMPARATIVE EVALUATION:
MARKET SHARE AND DISTRIBUTION
Although there are no official statistics in terms of Vietnam’s solar power market share, from 1997 to
2000, Selco Vietnam dominated the whole solar energy market (Nguyen, 2009). On the contrary, as
Redsun has just joined the solar energy market since 2007, it takes time for Redsun to become a strong
competitor like Selco Vietnam. Therefore, we should take advantage of these facts to obtain sufficient
market share for our new business.
STRATEGIC OPPORTUNITIES
Since both Selco Vietnam and Redsun have narrow markets and high price products, we will focus on
these two weaknesses and make them become our competitive edges. Their main markets are households,
whereas we are trying to target offices as well. In addition to, their major product is hot water solar
system not photovoltaic as in our company. This strategy will help us to exploit the potentials of office
market because their demand is huge for their business and their ability to pay is high. Furthermore, their
products are expensive because they import solar cells from Germany and France. For us, to lower the
cost, we decided to import from China, which is regarded as the cheapest producer of solar cells in the
world yet its quality is warranty up to 25 years. Therefore, we can compete with Selco Vietnam and
Redsun in terms of price.
4.6.SWOT ANALYSIS
STRENGHT WEAKNESS
 Guarantee sustainable local power
 Limited capital.
supply at low prices.
 Lack of local material sources.
 Specialized in solar energy for
sustainable development with dynamic,
talented staffs with good educational
background.
 Deliver high quality maintenance and
customer services.
 Provide green, renewable energy which
does not release any harmful carbon
dioxide or other pollutants.
OPPORTUNITIES THREATS
 Great solar energy potential to be
 Price competition.
exploited.
 High initial installation payment.
 Huge demand and market for power.
 Gain support from government for
producing green, low-carbon energy.
5. MARKETING STRATEGY
5.1. STRATEGY FROM SWOT ANALYSIS
S-O strategies: W-O strategies:
 Market Solartricity as an  Partner with foreign investors to

affordable brand which provides increase capital
stable electricity for households  Collaborate with foreign
and buildings suppliers, especially China, to
 Establish a strong distribution lower production cost
channel based on well-trained staff
 Campaign to win support from the
government such as tariff, subsidy
W-T strategies
S-T strategies
 Improve efficiency in cost
 Make high quality as a unique control
selling point  Set up stable technology
 Build an efficient Customer transfer
Relationship Management to
retain customers
5.2 MARKETING MIX 7 PS ( PRODUCT – PRICE – PLACE – PROMOTION- PACKAGING –

POSITIONING – PEOPLE)
PRODUCT
System Price Breakdown For Households

 For households: Household owners
Ssize Appliances Quantity Duration Fees
usually have small to medium
( Kw) ( H/Day) (Usd)
electricity demand from 1.2 kwh – 5
0.24 Compact Lights 2 9.6 1080
kwh per day during blackhours. Hence,
Tv Lcd 32'' 1 5
to sustain this demand, our company
Fan 1 9
designs various options to match this
0.48 Compact Lights 3 10 2250
demand from 0.24 kw to 1 kw
Refigerator 1 5
Solartricity system.
Fan 1 9
 For offices: For offices, the system
Tv Lcd 32'' 1 6
will be much bigger to match their high
1 Compact Lights 3 3 4500
demand. According to our model and
Laptop 1 2
survey, for a typical office room 100
Fan 1 3
m2, it will need to install a 3 kW
Tv Lcd 32'' 1 3
System to supply 14 kWh per day. We
Airconditioning 2 1 2
also have the suitable system according
Hp
to customer’s demand.. Please refer to
the table below:
PRICE
 For households: price of installation fees and annual maintenance for solartricity is 4,500 usd/1 kw
system.
 For offices: discounts also apply if the owner installs more than 2 kw solartricity. For any additional
kw solartricity system installed, 10 usd discount will be given. Price will be calculated based on the
demand of building. The below table is the example of buying options for building owner
PLACE( DISTRIBUTION)
System Price Breakdown For Office

 For households: Local stores and
Size ( Appliances Quantity Duration Fees
supermarkets
Kw) ( H/Day) (Usd)
 For offices:
o Local stores and supermarkets
Computers 6 8
o Direct distributors
Fan 3 8
o Online stores
o Distribution partners: ongoing
Airconditioning 1 2
and future projects
2 Hp
Computers 9 8
PROMOTION
Fan 6 8
 Press releases: Solartricity will 3 Compact Lights 4 8 13470
send press releases, which contain Computers 13 8
alarming information with regards Fan 4 8
to environmental problems and Airconditioning 2 2
how solar energy is a good 2 Hp
alternative, to major news agencies 4 Compact Lights 10 8 17940
such as Tuoitre, Thanhnien, Tv Lcd 32'' 2 8
Nguoilaodong, etc. Besides, we Airconditioning 2 2.5
will also tailor our messages to 2 Hp
target news channels of some Computers 15 8
major TV stations like HTV and Fan 9 8
VTV. 5 Compact Lights 12 8 22400

 Brochures: these brochures with Airconditioning 3 2
information about benefits, costs and 2 Hp
money saved will be distributed to Computers 18 8
residences and companies. Fan 6 8
Tv Lcd 32'' 3 8
 Advertisements And Tvcs: besides
press releases, we will also place advertisements on major newspapers such as tuoitre, thanhnien,
nguoilaodong, etc., as well as some magazines. In addition, tvcs aired on major tv stations like htv
and vtv will be produced.
 Online Marketing: since today is an information age, we will leverage internet for our new
business. An official website, named www.solartricity.com, will be launched to provide information
about product, as well as new promotions and discounts. Moreover, this platform will also be used
for b2b e-commerce between us and companies in office buildings. Besides, social media platforms
and forums will be adopted to generate greater consumer awareness.
 Email Newsletters: email newsletters will be sent to emails of companies in Ho Chi Minh city.
These newsletters will provide more information to companies in office buildings.
POSITIONING
We will position ourselves as a product with affordable price, high quality and good customer
service.
PACKAGING
We design logos for our company and product to deliver a message of passion, vibrancy and
environmental friendliness.
PEOPLE
 For Households: we will train our part-time marketers as Solartricity’s representatives, who
will develop a long-term relationship with us so that our brand will be enhanced in the community. They
will go directly to every household to market and be paid based on their performance (number of products
sold). In addition, we will also place sample products at local electric stores so that customers who go
there to buy electricity generators can also know about our products. These local distributors will also be
commissioned based on their performance.
 For Offices: we also have a group of part-time marketers and telemarketers to approach
companies. Like those household marketers, they will also be paid based on their performance.
5.3. MARKETING PLAN
MARKETING PLAN
3 Months 6 Months 9 Months 1 Year
Website 1
Number Of Active Forum Discussions On Solartricity 15 30 45 60
Number Of Pr Campaigns 1 2 3 4
Number Of Brochures Per Campaign 5,000 10,000 15,000 20,000
Number Of Households Reached 10,000 20,000 30,000 40,000
Number Of Companies Reached 10 20 30 40
Number Of Trainings For Marketers 1 2 3 4
Number Of Newspaper Articles 10 20 30 40
Number Of Online Articles 10 20 30 40
Number Of Tv Reports 1
Number Of Government And Private Projects 1

Contacted
Number Of Print Advertisements 1 1 1 2
Number Of Tvcs 1 1 2
Number Of Distributors 1 2 2 3
Number Of Trade Fair And Industrial Fair 1 2

Participations
MARKETING BUDGET
Quantity In 1 Year
Website 1 Us$ 5007
Pr Campaigns 4 Us$ 4,0008
Brochures 20,000 Us$ 3009
Trainings For Marketers 4 Us$ 1,00010
Print Ads 2 Us$ 6,50011
Tvcs 2 Us$ 3,00012
Instructional And Promotional Items For Distributors 3 Us$ 1,500
Trade Fair And Industrial Fair Participations 2 Us$ 1,500
Total Us$ 18,300
SALES GOALS
Since we are a new start-up company, we will rely on our staff of marketers to sell to households and
showrooms and websites to cater to companies in ho chi minh city in the first year. In 10 years, we will
venture into other parts of vietnam, as well as neighbouring countries such as laos and cambodia.
 In 1 year, solartricity will:

o Account for 0.05% of needs of ho chi minh city’s potential customers in household markets.
o Account for 0.4% of needs of ho chi minh city’s potential customers in building markets.
 In 5 years, solartricity will:
o Account for 2.5% of needs of ho chi minh city’s potential customers in household markets.
o Account for 5% of needs of ho chi minh city’s potential customers in building markets.
 In 10 years, solartricity will:
7
http://www.vinadesign.vn/dich-vu-thiet-ke-web/134-gia-thiet-ke-web-site.html
8
http://www.powerhomebiz.com/vol48/affordpr.htm
9
http://www.insieure.net/to-roi-gia-re.html
10
Trainings = trainers + materials + equipment
11
http://www.marketingvietnam.net/content/view/454/25/
12
http://www.vn-zoom.com/f173/quang-cao-tren-truyen-hinh-ton-khoang-bao-nhieu-381470.html
o Account for 4.5% of electricity needs within cutting hours in households in ho chi minh city.
o Account for 10% of electricity needs within cutting hours in office buildings in ho chi minh
city.
o Have representative offices in other cities like ha noi, hai phong, da nang, can tho etc. And in
Laos and Cambodia.
o Build own factory in southern vietnam.
6. DEVELOPMENT STRATEGY
This section is a road map of how we are going to get from where we are now to where we want to be in
the future. It includes all the steps that we need to accomplish to get the business up and running. It also
mentions the risks the we might encounter during the implementation.
Work remained to launch our company and products are listed below:
Time Line Work
2012 September  Register The Business
 Contact With Media, Newspaper For Advertising
 Prepare Brochures For Marketing Strategy
 Look For Office Location In Ho Chi Minh City
October And  Recruit Salers And Electrical Engineering
November  Look For A Warehouse For Solar Panels
 Look For Chinese Suppliers In Guangzhou For Purchase Of Solar Panels And Controller
 Look For Local Suppliers For Other Components Of System: Battery, Frames, Electricity
Wires
 Look For With Marine Transportation Company
 Contact Showroom And Local Distributors About The Solartricity Sale
December  Acquire Utilities: Computers, Logo Brand, Office Accessories
 Acquire Transportation Means: A Small Truck
 Provide Training For Salers
2013 January  Complete The Preparation Phases
 Business Commences
The outstanding risks associated with the plan are transportation risk and technological risk.
Transportation risk is the damage of solar panels while handling from guangzhou port to ho chi minh city
port. Because solar panel is very expensive, to mitigate the risk, we will insure solar panels with the
transportation company along the way. As from the factory to the port, Chinese suppliers will warranty
the quality of products.
Technological risk is associated with the malfunction of system after installation. Special attention is
concentrated on it because company’s reputation can be easily damaged if it receives negative feedbacks
from users about the inadequate system. To avoid the risk, we will employ an experienced head electrical
engineering to design the system and survey carefully customer’s house or office in order to come up with
the most sustainable system. Components such as solar panels, battery and controllers always come with
the warranty; hence if there are defects, the customers can return the products within stated time for
instance solar panels has 25 year of warranty from china factory.
7. MANAGEMENT AND ORGANIZATION PLAN
7.1 COMPANY ORGANIZATION
Our company has a board of executive consists of top three major directors who are in charge of
managing and controlling company. Besides, we have a board of advisors which will consult us during
the operation of business. The following organization flow chart will illustrate our organization structural.
President
Chief finance offier Chief Executive Officer Chief Production officer

Pham Thu Nga
Vo Thi Thu Ha Huynh Quang Hung
Accountant Sale Manager Purchase Manager
Marketing Manager Additional

Office Admin Logistic/Guard
Customer Service
Human Resource Assitance Electrical Engineer
PR/Mass Media
Assitance
Marketer
Organization Chart of VietSun

7.2 STAFF BIOGRAPHY
Chief Executive Officer: Mr. Huynh Quang Hung is pursuing his BA

degree in communications and new media from the National
University of Singapore. His background has equipped him with a deep
understanding of PR and Marketing. Moreover, he was once an
Account Intern of Bates141, which helped him to gain valuable
experiences in advertising, marketing and pr. Therefore, his excellent
academic result, along with remarkable hands-on experience in PR and
marketing, fits his task allocation in vietsun as the marketing manager.
Chief Finance Officer: Ms. Vo Thi Thu Ha succeeded in pursuing her BA

degree in her major economics at National University of Singapore. She
is currently working for Asia Commodities Trading Pte Ltd in Singapore.
Her excellent educational background, working experience as well as
her great passion for financial analysis have contributed for her leading
role in business financial performance of vietsun jsc. She is well aware
of how an appropriate financial infrastructure influences the success of
a business so as to make sure effective execution to occur and day to
day operations can be carried out seamlessly. To her, the path to
financial maturity is also the path to greater profitability.
Cheif Production Officer: Pham Thu Nga is completing her BA at the

National University of Singapore, School of Design and Environment.
She has an intensive background on green material, sustainable design
and interagted solar system in building. Pursuing an exchange program
at Texas A & M university, she had chance to study the most innovative
green technology which includes the photovoltaic technology from
developed countries. With a comprehensive knowledge from both
engineering and design, she is able to help VietSun deliver the best
products to customers.
7.3 BOARD OF ADVISORS:
Mr. Duong Xuan Truong
Mr. Thomas Reindl
Mr. Kua Han Wei
Ms. Chu Hong Anh
Mr. Le Hong Vu
Ms. Nguyen Thanh Thuy

8. OPERATION PLAN
Mobillization Phase
• Import Components
• Transportation Vechile: Small Truck
Design Phase
•Electrical Engineering Design

•Architecture Design
Installation Phase
•Install system
•Check and Inspect
Maintenance Phase
•Defect Report
•Customer Service
Brief sketch of implementation plan

8.1 MOBILLIZATION PHASE
Components of solartricity are imported from china and acquired from local suppliers. The inventory will
be kept in warehouse. The inventory strategy principle is first in first out to alleviate the risk of having
inventory of company because cost of goods sold is highly expensive for our product.
8.2 DESIGN PHASE
Design, technical and mechanical teams will be responsible for calculating and designing the system to
sustain customer’s needs. The design teams with 2 electrical engineers will choose the most sustainable
system for customer’s demand and design the system to minimize its impact on the appearance of
buildings and houses.
All devices and solar panel will be stored and modified in one of our warehouse to follow the plan of
design and technical departments. The finished products will be packaged in the paper box with the
company and product’s logo. The packaging process may need 1 or 2 workers only.
8.3 INSTALLATION PHASE Service Fees (Usd)

Clean The Solar Panels 10
Our mechanical team with 2 electrical engineers
Replace Battery 15 ( Exclude Battery
and 2 outsourced workers will be in charge of
Price)
the installation of solartricity system.
Replace Inverter 15 ( Exclude Inverter
Equipments and components are transported to
Price)
users’ place via our truck. The installation varies
Replace Electric Wires 10 ( Exclude Electricity
from 1 day up to 1 weeks in accordance to
Price)
system sizes.
Stabilize The Frames 20
Change The System 30
8.4 MAINTENANCE PHASE
Location
The maintenance will be held annually. The Install Additional Solar 20 ( Exclude Solar Panels
technicians will clean the solar panels, check Panels Price)
conditions of inverter and battery and replace the Replace Broken Solar 20 ( Exclude Solar Panels
defective or broken devices. The first three years Panels Price)
of maintenance is free of charge. If the device is
Maintenance Service Fees
still in warranty, customer only pays for the
service fee listed in the table:
9. FINANCIAL PLAN
9.1 SALE AND REVENUE
SALES TOP – DOWN
By our market research, the total size of our market at ho chi minh city is estimated as follow:
Ho Chi Minh City

Market Size
No. Of Potential Power Of Equivalent
Type Of Customers
Customers System Needed
(Kw)
Individual Households 339,245.00 81,418.80
Low Rise Buildings 57,800.00 173,400.00
As the market in ho chi minh city is highly potential, in 5 years we only focus on ho chi minh city market with the % market cover of 2 targeted
customers:
2013 2014 2015 2016 2017

Product
Products Product Product Sales Product Product
% Market % Market % Market % Market % Market Sales
Sales (Kw) (Kw) Sales (Kw) Sales (Kw)
(Kw)
Individual
0.0005 40.71 0.0008 65.14 0.0012 97.70 0.0018 146.55 0.0025 203.55
Households
Offices 0.001 173.40 0.002 346.80 0.0035 606.90 0.0055 953.70 0.008 1387.20
Total 214.11 411.94 704.60 1100.25 1590.75
2013 2014 2015 2016 2017

Product Product Product Product
Products Product Sales
% Market Sales % Market % Market Sales % Market Sales % Market Sales
(Systems)
(Systems) (Systems) (Systems) (Systems)
Individual
Households
0.0005 170 0.0008 271 0.0012 407 0.0018 611 0.0025 848
(240w
Systems)
Offices (3 Kw
0.001 58 0.002 116 0.0035 202 0.0055 318 0.008 462
Systems)
SALE BOTTOM UP
Based on our market analyses, 1 distributor can sell 15 power generator systems per month on average. As we are a start up company, in our conservative
calculation, we estimate 1 distribute in the beginning of year 1 will sell 3 system per month and gradually increase throughout the year because he has
gain experience. At the end of year 1, we will recruit 3 salers in total and at the end of year 5 there will be 7 distributors.
2013
Facts: An individual household
needs 864 Wh/day during black
hours => needs to install a system
with minimum power of 0.24 kW
An office needs 14904 Wh/day
during black hours => needs to
install a system with minimum
power of 3 kW
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
No. of distributors 1 1 1 1 2 2 2 2 2 3 3 3
# of units sold for households per
distributor 3 4 5 8 10 and 3 12 and 4 14 and 4 13 and 5 13 and 5 13,5,2 14,5,3 16,5,3
Total # of units sold for households 3 4 6 8 13 16 18 18 18 20 22 24 170
Total # of kW system sold for
households 0.72 0.96 1.44 1.92 3.12 3.84 4.32 4.32 4.32 4.80 5.28 5.76 40.80
Selling price per kW (USD) 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500
Revenue for households products
(USD) 3,240 4,320 6,480 8,640 14,040 17,280 19,440 19,440 19,440 21,600 23,760 25,920 183,600
# of units sold for offices per
distributor 1 2 2 2 2 and 1 3 and 1 5 and 2 3 and 2 3 and 2 4,3,1 4,3,1 5,4,2
Total # of units sold for offices 1 2 2 2 3 4 7 5 5 8 8 11 58
Total # of kW system sold for
offices 3.00 6.00 6.00 6.00 9.00 12.00 21.00 15.00 15.00 24.00 24.00 33.00 174.00
Selling price for the first two kW
(USD) 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500 4,500
Selling price for the third kW
installed onwards (USD) 4,490 4,490 4,490 4,490 4,490 4,490 4,490 4,490 4,490 4,490 4,490 4,490
Revenue for offices products (USD) 13,490.00 26,980.00 26,980.00 26,980.00 40,470.00 53,960.00 94,430.00 67,450.00 67,450.00 107,920.00 107,920.00 148,390.00 782,420.00
Revenue (USD) 16730.00 31300.00 33460.00 35620.00 54510.00 71240.00 113870.00 86890.00 86890.00 129520.00 131680.00 174310.00 966020.00
REVENUE SCENARIOS
We also calculate sales based on 3 scenarios of market movements: base case, upside case and downside case.
We estimate the growth rate of 3 market scenarios
Forecasts
'11e - '15e Forecasts Base Upside Downside

Case Case Case
Sales Growth 65% 70% 60%
Cogs/Sales % 60% 55% 65%

Sg&A/Sales % 15% 10% 20%
D&A/Sales % 4% 2% 6%
Interest Expense 5 5 5
Effective Tax Rate 25% 25% 25%

Income Statement Base Case

2011 E 2012 E 2013 E 2014 E 2015 E
Revenue 966,020.0 1,593,933.0 2,629,989.5 4,339,482.6 7,160,146.3
- COGS 609,343.7 974,950.0 1,559,919.9 2,495,871.9 3,993,395.0
- SG&A 252,983.80 290,931.4 320,024.5 384,029.4 384,029.4
EBITDA 103,692.5 328,051.7 750,045.0 1,459,581.3 2,782,721.8
- D&A 0.0 0.0 0.0 0.0 0.0
EBIT 103,692.5 328,051.7 750,045.0 1,459,581.3 2,782,721.8
- Interest Expense 130,929.9 130,929.9 130,929.9 130,929.9 130,929.9
EBT (27,237.4) 197,121.8 619,115.2 1,328,651.4 2,651,792.0
- Taxes 0.0 0.0 228,270.4 474,969.0 868,129.3
Net Income (27,237.4) 197,121.8 390,844.7 853,682.4 1,783,662.7
Income Statement Upside Case
2011 E 2012 E 2013 E 2014 E 2015 E

Revenue 966,020.0 1,642,234.0 2,791,797.8 4,746,056.3 8,068,295.6
- Cogs 609,343.73 609,343.7 609,343.7 609,343.7 609,343.7
- Sg&A 252,983.80 278,282.2 306,110.4 336,721.4 370,393.6
Ebitda 103,692.5 754,608.1 1,876,343.7 3,799,991.1 7,088,558.3
- D&A 0.0 0.0 0.0 0.0 0.0
Ebit 103,692.5 754,608.1 1,876,343.7 3,799,991.1 7,088,558.3
Ebt (27,237.4) 623,678.2 1,745,413.8 3,669,061.2 6,957,628.5
- Taxes 0.0 0.0 228,270.4 474,969.0 868,129.3

Net Income (27,237.4) 623,678.2 1,517,143.4 3,194,092.2 6,089,499.2
Income Statement Downside Case
2011 E 2012 E 2013 E 2014 E 2015 E

Revenue 966,020.0 1,545,632.0 2,473,011.2 3,956,817.9 6,330,908.7
- Cogs 609,343.7 1,005,417.1 1,658,938.3 2,737,248.2 4,516,459.5
- Sg&A 252,983.80 303,580.6 364,296.7 437,156.0 524,587.2
Ebitda 103,692.5 236,634.3 449,776.2 782,413.7 1,289,862.0
- D&A 0.0 0.0 0.0 0.0 0.0
Ebit 103,692.5 236,634.3 449,776.2 782,413.7 1,289,862.0
Ebt (27,237.4) 215,685.5 428,827.5 761,465.0 1,268,913.2
- Taxes 0.0 0.0 228,270.4 474,969.0 868,129.3
Net Income (27,237.4) 215,685.5 200,557.1 286,495.9 400,783.9
We have very optimistic sales forecast even in the most preservative scenarios.
9.2 OPERATING EXPENSE
COMMISSION TO DISTRIBUTORS
Commissions To Distributors
2013 2014 2015 2016 2017

Number Of Distributors
3 4 5 6 7
Total # Of Household Products (0.24kw) Sold (Per Year)
170 271 405 611 848
Total # Of Offices (3kw) Sold (Per Year)
58 116 202 318 462
Wholesale Price To Distributors For Household And The First
Two-Kw Of Office Products
4500 4500 4500 4500 4500
Commision Each Unit (Usd)
225 225 225 225 225
Total Commisstions Received (Per Year)
35,280 66,834 112,770 176,094 253,692
Wholesale Price To Distributors The Third Kw Onwards Of
Offices Products
4,490 4,490 4,490 4,490 4,490
Commision Each Unit (Usd)
224.50 224.50 224.50 224.50 224.50
Total Commisstions Received (Per Year)
13,021 26,042 45,349 71,391 103,719
Usd Total Commisions Received (Per Year)
48,301.00 92,876.00 158,119.00 247,485.00 357,411.00
We ensure that our distributors will commit highly to the company by giving them higher commission fees than these of other alternative products. By
distributing solatricity, each sale agent earns 225 usd for each system they sold, which is higher commission than other products.
MARKETING EXPENSES
In 1 Year
Quantity Total
(Usd)/Unit
Website 1 500 500
Pr Campaigns 4 2,000 4000
Brochures 20,000 0.02 300
Trainings For Marketers 5 200 1000
Print Ads 2 3250 6500
Instructional And Promotional Items For Distributors 3 500 1500
Trade Fair And Industrial Fair Participations 2 750 1500
Tvcs 2 750 1500
Total 16800
2014 2015 2016 2017

Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Website Maintainance 1 300.00 1 300.00 1 1.00 1 1.00

Pr Campaigns
6 12,000.00 8 16,000.00 10 20,000.00 12 24,000.00
Brochures
40,000 600.00 60,000 900.00 80,000 1,200.00 100,000 1,500.00
Trainings For Marketers
7 1,400.00 9 1,800.00 11 2,200.00 13 2,600.00
Print Ads
4 13,000.00 6 19,500.00 8 26,000.00 10 32,500.00
Instructional And Promotional
Items For Distributors 4 2,000.00 5 2,500.00 6 3,000.00 7 3,500.00
Trade Fair And Industrial Fair
Participations 4 3,000.00 6 4,500.00 8 6,000.00 10 7,500.00
Tvcs
4 3,000.00 6 4,500.00 8 6,000.00 10 7,500.00
Total 35,300.00 50,000.00 64,401.00 79,101.00

UTILITY EXPENSE
WATER
Water Needed Unit Costs (Vnd) Vnd Usd Per Year

(M3)
For Daily Uses 15.00 4,000.00 60,000.00 1,095.00

3.00
For Warehouse 2.00 200.00 400.00 7.30
0.02
ELECTRICITY
Electricity Needed Unit Costs (Vnd) Vnd Usd Per Year

(Kwh)
1,500.00 723,000.00 36.15

482.00 13,194.75
LABOUR COSTS
Salary Table 2013
Usd Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Per
Year
Management &
Administration
Chief Executive
Officer 1,250.0 1,250.0 1,250.0 1,250.0 1,250.0 1,250.0 1,250.0 1,250.0 1,250.0 1,250.0 1,250.0 1,250.0 1,250.0 15,000.0
Vice President
833.3 833.3 833.3 833.3 833.3 833.3 833.3 833.3 833.3 833.3 833.3 833.3 833.3 10,000.0
Chief Financial
Officer 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 8,000.4
Legal (Outsourced)
833.3 833.3 833.3 833.3 833.3 833.3 833.3 833.3 833.3 833.3 833.3 833.3 833.3 10,000.0
Accountant(S)
366.7 366.7 366.7 366.7 366.7 366.7 366.7 366.7 366.7 366.7 366.7 366.7 366.7 4,400.0
Office Admin
166.7 166.7 166.7 166.7 166.7 166.7 166.7 166.7 166.7 166.7 166.7 166.7 166.7 2,000.0
Mgmt & Admin
Salaries Per Month 4,116.7 49,400.4
Production R&D
R&D Manager
666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 8,000.0
Electrical
Engineer(S) 500.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 12,000.0
R&D Salaries
1,166.7 20,000.0
Sales/ Distribution
Sales Manager
666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 8,000.0
Direct Sales Agent
(Outsourced)
Distributors
(Outsourced)
Marketing
Marketing Manager
666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 8,000.0
Customer Service
266.7 266.7 266.7 266.7 266.7 266.7 266.7 266.7 266.7 266.7 266.7 266.7 266.7 3,200.4
Marketer(S)
266.7 533.4 533.4 533.4 533.4 533.4 533.4 533.4 533.4 533.4 533.4 533.4 533.4 6,400.8
Pr/Mass Media
416.7 416.7 416.7 416.7 416.7 416.7 416.7 416.7 416.7 416.7 416.7 416.7 416.7 5,000.0
Sales And
Marketing Salaries 1,616.7 22,601.2
-
Warehouse Salaries
Purchase Manager
666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 666.7 8,000.0
Additional
Logistics/Guard 333.3 333.3 333.3 333.3 333.3 333.3 333.3 333.3 333.3 333.3 333.3 333.3 333.3 4,000.0
Warehouse Salaries
12,000.0
Total Salaries Per
Month 8,300.1
Total Salaries Per
Year 112,001.6
9.3 INVESTMENT
SOURCE OF INITIAL INVESTMENT
Usd
Buidings And Plants
46,571.43
Utilities
13,197.77
Staffing&Salary Year 1
8,300.07
Total Cost Of Good Sold Year 1
609,343.73
Initial Variable Capital
100,000.00
Total
777,412.99
Owner Equity
500,000.00
Loans
500,000.00
Total 1,000,000.00
9.4 FINANCIAL STATEMENTS
Projected Income Statement
Vietsun Jsc - Solartricity
2013 2014 2015 2016 2017

Sales/ Revenue
Household Products & Lrb
Products 966,020.0 1,871,010.0 3,162,380.0 4,949,700.0 7,148,220.0
Cost Of Sales 609,343.7 1,122,606.0 1,897,428.0 2,969,820.0 4,288,932.0
Gross Profit 356,676.3 748,404.0 1,264,952.0 1,979,880.0 2,859,288.0
Gross Margin (%) 58.5 66.7 66.7 66.7 66.7
Social Contribution (1% Sales) - - 31,623.8 49,497.0 71,482.2
Operating Expense
Payroll 112,001.6 134,401.9 161,282.3 193,538.8 232,246.5
R&D 5,000.0 6,000.0 7,200.0 8,640.0 10,368.0
Premises/ Land Rent 46,571.4 51,228.6 56,351.4 61,986.6 68,185.2
Sales &Marketing Expenses 16,800.0 35,300.0 50,000.0 64,401.0 79,101.0

Commision Expense To
Distributors 48,301.0 92,876.0 158,119.0 247,485.0 357,411.0
Maintenance Expenses 5,532.0 6,638.4 7,966.1 9,559.3 11,471.2
Utilities 13,197.8 17,157.1 22,304.2 28,995.5 37,694.2
Miscellaneous Expenses 5,580.0 6,138.0 6,751.8 7,427.0 8,169.7
Total Operating Expenses 252,983.8 349,740.0 469,974.8 622,033.1 804,646.7
Ebitda 141,248.0 445,254.2 853,089.2 1,430,691.8 2,146,368.9

Ebit (Earning Before Taxes &
Interest) 103,692.5 398,664.0 763,353.4 1,308,349.9 1,983,159.1
Interest Expense 130,929.9 130,929.9 130,929.9 130,929.9 130,929.9
Tax Incurred - - 190,838.3 327,087.5 495,789.8
Net Profit (27,237.4) 267,734.2 441,585.2 850,332.6 1,356,439.4
Net Profit / Sale (%) (2.8) 14.3 14.0 17.2 19.0

10. APPENDIX
10.1. COGS OF SOLATRICITY
Cogs Of 1 Unit Of Solartricity ( For 1 Kw System)

Quantity Unit Unit Cost ( Usd) Fees (Usd)
Component Fees
Solar Panels 5 Unit 288 Usd/Unit 1440
Inveter 1 Unit 380 Usd/Unit 380
Battery 1 Unit 170 Usd/Unit 170
Steel Frame 2.4 Piece 1.97 Usd/Piece 4.728
Electricity Wires 20 M 0.3 Usd/M 6
Charger Controller 1 Unit 419 Usd/Unit 419
Total (Before Tax) 2420
Tax 5%
Total (After Tax) 2541
Transportation
Transportaion Fee 115
Terminal Handling Charge (Thc) 1 Container 40 Usd/Container 40
Do Fees And Cleaning Fees 20
Storage
Warehouse 100
Installation Fees
Engineer 1 Person 25 Usd/Person/Day 25
Worker 2 Person 12.5 Usd/Person/Day 25
Cogs 2846
10.2 CASE STUDY FOR A TYPICAL HOUSEHOLD
- Solartricity system: 0.24KW cost 1080 USD / produce 1,2 kWh/day and light weight
- total hour cut: 5h ( from 9:30 am - 11am and 2:30pm - 5 pm )
- total day shortage per month for 1 household: 2 x4 = 8
- Diesel/Fuel Generator for household: price: 522.5 USD (source: http://sieuthimayvanphong.com/sanpham/7591/M%C3%A1y%20ph%C3%A1t%20%C4%91i%E1%BB%
- to produce 1,2 kWh/day, fuel needed: 0.53 l, fuel price = 1usd/l. discount rate = 8%
- fuel fees per year = 0.53 x 2 x 4 x 12 = 51 USD
- electricity price = 0.08 c/1 kwh
- an average inverter: price: 285 USD ( source: http://www.dodung.net/default.asp?tab=detailproduct&zone=40&id=74&Product=57&path=kich-dien-teknos-1000w
- to produce 1,2 kWh/day, an inverter need to charge the electricity beforehand, which cost: 0.20 USD => in 1 year it cost: 0.20 x 2x 4x12 = 19.2 USD
- solar hour: 5.4 hours ( south) but taking into account weather unexpectation , solar power used here is 5 hour
Solar Panel Diesel / Fuel Generator Inveter

Amount Of
Saving
Present From Year Cash Present Cash Present
Parameter Cash Flow N Value 1 To Year N Flow N Value Flow N Value
Installment Fees (Usd) -1080 1 -1080 -522.5 1 -523 -285 1 -285
Annual Electricity Fees Y1 30 1 30 30 -51 1 -51 -19 1 -19

Annual Electricity Fees Y8 30 8 18 186 -522.5 8 -305 -285 8 -488
Annual Electricity Fees
Y10 30 10 15 217 -51 10 -26 -19 10 -38
Y11 30 11 14 231 -51 11 -24 -19 11 -41
Y12 30 12 13 244 -51 12 -22 -285 12 -665
Y13 30 13 12 256 -51 13 -20 -19 13 -48
Y14 30 14 11 267 -51 14 -19 -19 14 -52
Y15 30 15 10 277 -522.5 15 -178 -19 15 -56
Y16 30 16 9 287 -51 16 -16 -285 16 -904
Y17 30 17 9 296 -51 17 -15 -19 17 -66
Y18 30 18 8 304 -51 18 -14 -19 18 -71
Y19 30 19 8 311 -51 19 -13 -19 19 -77
Y20 30 20 7 318 -51 20 -12 -285 20 -1230
Y21 30 21 6 325 -51 21 -11 -19 21 -89
Y22 30 22 6 331 -522.5 22 -104 -19 22 -97
Y23 30 23 6 336 -51 23 -9 -19 23 -104
Annual Electricity Fees 30 24 5 341 -51 24 -9 -285 24 -1673
Y24
Y25 30 25 5 346 -51 25 -8 -19 25 -122
Y26 30 26 4 350 -51 26 -7 -19 26 -131
Y27 30 27 4 354 -51 27 -7 -19 27 -142
Y28 30 28 4 358 -51 28 -6 -285 28 -2277
Y29 30 29 3 362 -522.5 29 -61 -19 29 -166
Y30 30 30 3 365 -51 30 -5 -19 30 -179
Y31 30 31 3 368 -51 31 -5 -19 31 -193
Y32 30 32 3 370 -51 32 -5 -285 32 -3097
Y33 30 33 3 373 -51 33 -4 -19 33 -225
Y34 30 34 2 375 -51 34 -4 -19 34 -243
Y35 30 35 2 378 -51 35 -4 -19 35 -263
Annual Maintenance Fees
Y1-Y35 -10 35 -1 377
P Value -703 -1748 -13566
Electricity Consumption Within

Blackhours (5h)
Avearge
Appliance Power No. Hrs/Day Average Wh/Day
Light 11 3 3 99
Tv 60 1 4 240
Refrigerator 80 1 5 400
Fan 25 1 5 125
Total 864 Per Year: 82.9 Kwh => Save 6.63usd
Electricity Consumption Withing Non-Blackhours ( From 0:00 Am - 9:30am

And 11am- 2:30 Pm, 5pm - 12pm =19h)
Avearge
Appliance Power No. Hrs/Day Average Wh/Day Column1 Column2
Light 11 4 8 352
Tv 60 1 6 360
Computer 60 1 3 180
Fan 25 1 19 475
Per Year: 277 Kwh, 0.24 Kw System Sp
Total 2887 Produce 1.2 Kwh/Day => Saving: 0.03 Usd
Electricity Consumption Per Day 24h In Non-

Blackhour Days
Avearge
Appliance Power No. Hrs/Day Average Wh/Day Column1 Column2
Light 11 4 11 484
Tv 60 1 10 600
Computer 60 1 3 180
Fan 25 1 24 600
Per Year: 908.16 Kwh, Use System In The
Non-Blackhours Days, Save: = 23.04 Usd
Total 3784 Per Year
10.3 CASE STUDY FOR A TYPICAL OFFICE
COMPARE OFFICE SYSTEM : 3 KW SOLARTRICITY WITH OTHER POWER GENERATORS

- office has 3 rooms, area 100m2
- work 7 days / week . Cutting electricity hour is 18 hours /week is normally distributed for 3 days per week=> each blackday needs 6 hours of electricity
- fuel price = 1usd/l. discount rate = 8%
- electricity price = 0.12 c/1 kwh
- fuel consumption of diesel : 2.2 l/h (100% power) . To sustain the electricity needed, generator need to operate in 5 hours
- fuel fees per year = 1 usd/ l x 11l/dayx 3 day/week x 4 week x 12month = 1584 usd/year
- price to install 4.5 kwh system is 4500 + 4490 + 4480 = 13470 usd
- diesel generator lifetime's : 7 years
-Diesel generator : price 1049 USD.Source:http://www.nvtvietnam.com.vn/may-phat-dien-hyundai
Solar hour : 5 hours
System Size
To install 4.5 kW Solartricity System need: 4.5 kW/ 240 W = 18.75 panels
Each panel has dimension as 1080 x 1580 x 45 mm, surface area needed is: 31.9 m2
Solar Panel Diesel / Fuel Generator

Present Present
Column1 Cash Flow N Value Cash Flow N Value
Installment Fees (Usd) -13,470 1 -13470 -1049 1 -1049
Annual Electricity Fees Y1 601 1 601 -1584 1 -1584

Annual Maintenance Y1-Y35 -10 35 -117 -10 35 -1
P Value -6022 -20325
Electricity Consumption Within Blackhours (6h)

Avearge Column
Appliance Power No. Hrs/Day Average Wh/Day Column1 2
Light 11 4 6 264
Computer 60 13 6 4680
Airconditioning 1500 1 6 9000
Fan 40 4 6 960
Per Year: 2146 Kwh => Save 257.
Total 14904 5usd
Electricity Fees Saving In Non-Blackhour Days If Using Solartricity: 0.12 X 14.904 Kw/Day X 4d/W X 4w X12 M= 343 Usd
10.4 SOLARTRICITY SPECIFICATION
Component Category Specification
Solar Panels Material Monocrystalline Silicon
Effeciency (%) 11 -16
Peak Power( Wp) 240
Color Blue Black
Dimension (Mm) 1080 X 1580 X 45
Working Voltage (V) 46.85
Working Current (A) 5.13
Open Voltage (V) 57.63
Short Current (A) 5.48
Working Temperature (Oc) -40 - 85
Price Per Unit ( Usd/ W) 1.6-1.7

Number Of Cells 98
Solar Inverter Output Power (Kw) 5.5 Kw
Output Voltage (V) 380
Output Current ( A) 12.5a
Phase 3 Phase 380 V 50/60 Hz
Installation Mode Wall Hang
Size (Mm) 185 X 260 X 170
Output Frequency Range ( Hz) 0.10 – 400
Operating Temperature (Oc) -10 – 40
Power ( Kw) 5.5
Price Per Unit ( Usd/Unit) 500
Battery Nominal Capacity (Ah) 100
Voltage (V) 12
Size ( Mm) 330 X 168 X 215
Black ( Kg) 31.5
Maximum Discharge Current (A) 1000
Minimum Charging Current ( A) 30
Lifetime ( Year) 10
Price Per Unit ( Usd/Unit) 100

10. REFERENCE
Burgermeister, J. (2009, May 22). China’s New Focus On Solar. Renewableenergyworld. Retrieved On February 25 From
Http://Www.Renewableenergyworld.Com/Rea/News/Article/2009/05/Chinas-New-Focus-On-Solar?Cmpid=Wnl-Wednesday-May27-2009
Dapice (2008). Rate Of Growth Of Electricity Demand In Vietnam. Retrieved On January 17 From Http://Www.Fetp.Edu.Vn/Index.Cfm
Dinh, H. (2010). List Of Projects In Hanoi Which Continue To Be Carried Out. Retrieved February 18 From Http://Khudothimoi.Com/Tintuc/Dau-Tu-
Quy-Hoach/3586-Danh-Sach-Cac-Du-An-Tai-Ha-Noi-Tiep-Tuc-Duoc-Trien-Khai.Html
General Statistics Office Of Vietnam (2009). Vietnam’s Census. Retrieved On February 18 From
Http://Www.Gso.Gov.Vn/Default_En.Aspx?Tabid=515&Idmid=5&Itemid=10799
Hai, C. (2010). Da Nang: Buildings Will Destroy City Space. Retrieved On February 18 From Http://Www.Baomoi.Com/Da-Nang-Nha-Cao-Tang-Se-
Pha-Hong-Khong-Gian-Do-Thi/148/5768757.Epi
Hung, S. (2011). Electricity Shortage Will Be Serious In 2011. Retrieved On February 18 From Http://Danviet.Vn/29031p1c24/Nam-2011-Se-Thieu-
Dien-Tram-Trong.Htm
Le, C. H., (2009). Solar Energy And Solar Photovoltaics In Vietnam. Retrieved On November 1 From
Http://Www.Berlin.De/Imperia/Md/Content/Asienpazifikforum/Apw/Apw2009/Praesentationen/Prof._Le_Vietnam.10.2009.Ppt
Le, S. & Khai, Q. (2011). Businesses Scramble To Prepare For Power Cuts. Retrieved On February 18 From
Http://English.Vietnamnet.Vn/En/Business/6327/Businesses-Scramble-To-Prepare-For-Power-Cuts.Html
Mong, B. (2010). Vietnam Sets The Goal Of Reducing 20 To 30% Energy Spending. Retrieved On February 18 From Http://Klvn.Vn/Home/Kinh-Te-
Viet-Nam/24755-Viet-Nam-Dat-Muc-Tieu-Giam-20-30-Chi-Phi-Nang-Luong.Html
Nguyen, D. (2011, September 1). Vietnam Power Development Plan For The 2011-2020 Period. Mondaq. Retrieved On February 26 From
Http://Www.Mondaq.Com/X/144632/Renewables/Vietnam+Power+Development+Plan+For+The+20112020+Period
Nguyen, T. T. B. (2009). Evaluation Of Franchising Business Model Applied To Solar Energy Market In Vietnam [Data File]. Retrieved From
Https://Publications.Theseus.Fi/Handle/10024/6800?Locale=Lsv&Author=
Thanh (2011). Electricity Demand In Vietnam In 5 Years Is Expected To Increase By 15%. Retrieved On January 17 From
Http://Vietnam.Vn/C1004n20110628111128531/Nhu-Cau-Dien-Nang-Tai-Viet-Nam-5-Nam-Toi-Du-Kien-Tang-15.Htm
Vietnam Electricity (2011). Electricity Shortage In Dry Season 2011. Retrieved On February 18 From Http://Lichcatdien.Info/Lich-Cat-Dien-Mien-
Nam/Lich-Cat-Dien-Dong-Nai/Tinh-Hinh-Thieu-Dien-Mua-Kho-Nam-2011.Html

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Renew energy for your future

Vietsun Co, Jsc SOLARTRICITY

Huynh Quang Hung/ Pham Thu Nga/ Vo Thi Thu Ha

National University Of Singapore

Executive Summary ...................................................................................................................................... 5

1. General Company Description .................................................................................................................. 6

2. Product And Service ................................................................................................................................. 7

2.1 Product Overview .......................................................................................................................... 7

2.2 Features ............................................................................................................................................ 8

2.3 Specification ................................................................................................................................... 9

2.4 Installation Mode ........................................................................................................................... 9

2.5 Production ......................................................................................................................................... 10

Solar Panels ......................................................................................................................................... 10

Solar Battery ....................................................................................................................................... 10

Supporting Frames .............................................................................................................................. 10

3. Market Opportunity ................................................................................................................................ 11

3.1. Severe Shortage Of Eletricity In Vietnam ....................................................................................... 11

3.2. Highly Compatible Region For Solar Power Development ............................................................. 13

3.3. Environmental Issue With Conventional Electricity Generation ..................................................... 14

3.5. Government Support ........................................................................................................................ 15

4. Market Analysis ...................................................................................................................................... 16

4.1. Market Segmentation And Target Market ....................................................................................... 16

Geographic Region ............................................................................................................................. 16

Demographic Groups .......................................................................................................................... 16

4.2. Demand From Individual Households ............................................................................................. 17

4.3. Demand From Offices ............................................................................................................... 18

4.4 Market Growth ............................................................................................................................. 18

4.5. Competition Analysis ................................................................................................................ 20

Competition Overview .................................................................................................................. 20

Product Comparison ....................................................................................................................... 21

Ability To Create Market Barriers: ..................................................................................................... 22

Competitive Advantage And Comparative Evaluation: ...................................................................... 22

4.6.Swot Analysis ................................................................................................................................... 23

5.2. Strategy From Swot Analysis .......................................................................................................... 24

Place( Distribution) ............................................................................................................................. 26

5.3. Marketing Plan ................................................................................................................................. 28

Marketing Plan .................................................................................................................................... 28

Marketing Budget ............................................................................................................................... 29

Sales Goals .......................................................................................................................................... 29

6. Development Strategy ............................................................................................................................. 30

7. Management And Organization Plan ...................................................................................................... 31

7.1 Company Organization ..................................................................................................................... 31

7.2 Staff Biography ................................................................................................................................. 32

7.3 Board Of Advisors: ........................................................................................................................... 33

8. Operation Plan ........................................................................................................................................ 34

8.1 Mobillization Phase .......................................................................................................................... 35

8.2 Design Phase ..................................................................................................................................... 35

8.3 Installation Phase .............................................................................................................................. 35

8.4 Maintenance Phase ............................................................................................................................ 35

9.1 Sale And Revenue ............................................................................................................................. 36

Sales Top – Down ............................................................................................................................... 36

Sale Bottom Up ................................................................................................................................... 38

Revenue Scenarios .............................................................................................................................. 39

9.2 Operating Expense ............................................................................................................................ 43

Commission To Distributors ............................................................................................................... 43

Marketing Expenses ............................................................................................................................ 44

Labour Costs ....................................................................................................................................... 47

9.3 Investment ......................................................................................................................................... 50

Source Of Initial Investment ............................................................................................................... 50

9.4 Financial Statements ......................................................................................................................... 51

10. Appendix ............................................................................................................................................... 53

10.1. COGS Of Solatricity ..................................................................................................................... 53

10.2 Case Study For A Typical Household ............................................................................................. 54

10.3 Case Study For A Typical Office .................................................................................................... 58