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Indias next source of Energy = SOLAR

India opens door for Solar Business


= MONEY

India targets for US$100 billion Solar


investment
Curious to know about Solar Business Let Us Glance
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Agenda
Introduction
Solar Concepts
Solar Businesses
Market Opportunity
Conclusion

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About the document


This document aims to touch upon the basic information about solar, solar business
opportunities, solar power projects and solar product manufacturing.
With this information reader will be in the better position to take the next step decision on solar
This document covers following below topics and sub topics
Overview :- Introduction about Solar, Solar energy, Solar products
Solar Business :- Overview of Solar Business Opportunities, Solar Power Projects and Solar
Manufacturing Unit
Market Opportunity :- Details the Revenue, Sales, Market, Skills
Conclusion :- Covers conclusion of overall document
Note :- We request to read this document with FULL SCREEN. Thank you for your cooperation.
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Solar Concept
What is Solar ?
What is Solar Energy ?
Uses of Solar energy
Solar Products

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

Solar Water
Heater

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What is Solar energy ?


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

Solar Panel : Used to convert Solar


Radiation to electric energy
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Uses of solar energy


Firstly solar energy is renewable energy (renewable energy is the energy from
source where the source will exist infinitely)
Solar energy is used generate electricity which inturn can be used as home
light, electrifying house, street light etc
Solar energy can be used to heat the water
Solar energy can be used to pump the water for irrigation, house etc
Solar energy can be used for generators for storing electricity to use for later
purpose
Solar energy is used for the creation of power plant in farms, commercial
offices, schools etc
Now a days, Solar energy is used in aero planes, cars, to create chimney etc
Save amount in the electricity bill by using solar on behalf of govt power
supply
Increases the home value
Subsidy and incentives from govt

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Main Solar Products


Solar home light :Generator : -Used to store electricity

Street Light :- Used as street light

Used to light up your home

Solar water heater :Used to heat the water.

Solar pumps :- Used to pump the water

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Solar

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

2. Solar Power Projects


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

3. Solar Product Manufacturing


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

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Business Opportunities

What is Business Opportunity ?


It is the set of products, information, tools, rights, people buy to start the business
Types of Business Opportunities
Franchise
Distributorship
Dealerships
Sub-Dealers
Channel Partners
Types of Solar Business Opportunities
Franchise
Dealerships
Channel Partners
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Solar Business Opportunities


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

Once
Parnetnered,Franch
isor will provide
Products, Right to
use there brand,
Equipment's
Training
Employees
Marketting

Franchisor
:- Who
provides
Franchise

Partner with
Franchisor
and provide
Franchise
Fee,
Commission
on sales to
Franchisor
Customer
willing to
buy
Franchise

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Solar Franchise Valuation


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

Investment
(Range)
50k to 5ak

Avarage
Margin
30%

ROI

30%

Liking Cusotmers

Minimum Earning Per


Day
Cities/Villages where power
If very low cost product is
goes off frequently,
sold with a min margin of
House where sun light reach is 30% at a rate of one per
low,
day then minimum of
Commercial buildings,
500rp/day can be earned.
Godowns,
Streets where no lights are
there,
House where more power is
consumed
Customers interested in saving
electricity bills

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How it works :-

Partner with Company which provide franchise. Partnering involves mutual agreement
sign off between company and the person willing to buy franchise. If your firm not
registered, company will provide guidelines on how to proceed
Once partnered, You need to invest to buy some products, for security deposit,
Showroom design and other things
When you buy the products, you will buy the product with 30 percent less than MRP
(Maximum Retail Price) but you will sell the product at MRP price to customer.
Example :Suppose a Home Light cost MRP 2000rp, Then a franchise will buy that Home Light at
30% less than MRP, Which is equal to 1400rp. Then same Home Light is sold to
customer at 2000rp. Franchise will earn a profit of 600rp
Note :- Transport depends on company, they might provide or might not.
Note :- Technicians and Installation help depends on company. Either they may provide
technicians or you may hire. There Salary/Commission depends on company.
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Solar Business Opportunities


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

Once Partnered,
Manufacturer/Dis
tribut will provide
only the products
and sometimes
training (Unlike
what Franchise
provides)

Customer
willing to
become
Dealers

Partner
with
Manufactu
rer/Distrib
utor and
buys
product

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Solar Dealership Valuation


Below tables indicates the Solar Dealership Revenue Valuation (How worth
dealership is ?)
Investment Avarage
ROI
Liking Cusotmers
Minimum Earning Per Day
(Range)
On need
basis
(Means
when
customer
wants the
product)

Margin
15% to 50%

15%
Cities/Villages where power
to 50% goes off frequently,
House where sun light reach is
low,
Commercial buildings,
Godowns,
Streets where no lights are
there,
House where more power is
consumed,
Customers interested in saving
electricity bills

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If very low cost product is


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

How it works ?
Partner with Company which provide Dealership. Dealership involves mutual agreement sign
off between company and the person willing to buy dealership. It works like below
If Firm Registered
When you buy the product, you will buy the product with (range 15 to 50) percent less than
MRP but you will sell the product at MRP to customer.
If Firm Not Registered
When you buy the product, you will buy the product with MRP price and sell the product at
same MRP to customer. Your commission or margin will be provided by company at later
point of time through cash or deposit in your personal account.
Note :- Transport, installation depends on how much customer order you have. It also
depends on how much margin/commission company will provide. If they provide more
commission like 50%, then transport and installation should always be taken care by dealers
Note :- Technicians and Installation help depends on company. Either they may provide
technicians or you may hire. There Salary/Commission depends on company.
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Solar Business Opportunities


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

Once
Partnered,
Manufacturer/D
istributor/Deale
r will provide
the commission
Customer willing
to become
Channel Partners

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Partner
with
Manufactu
rer/Distrib
utor/Deale
rs and
provide
just
customer
leads

Solar Channel Partner Valuation


Below tables indicates the Solar Channel Partner Revenue avaluation (How
worth channel partner is ROI
?)
Investment Avarage
Liking Cusotmers
Minimum Earning Per
(Range)
Not
required or
very
minimum
investment

Margin
15% to 20%

15%
Cities/Villages where power
to 20% problem frequently,
House where sun light is low,
Commercial buildings,
Godowns,
Sreets where no lights are
there,
House where more power is
consumed
Customers interested in saving
electricity bills

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

How it works
Partner with Company which provide channel partner/Freelancer. channel
partner/Freelancer involves mutual agreement sign off between company and
the person willing to buy channel partner/Freelancer.
After you become channel partner. You need to provide customer lead,
Company or dealers will take care of product sale to the customer which you
provided. Once they sell the product to the customer, Your commission or
margin will be provided by company at later point of time through cash or
deposit in your personal account.
Note :- No need to worry about transport or installation. This will be taken care
by Company or Dealers

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Skills Required
Understand product and its benefit to customers
Understanding the place where generally product can be sold
Understanding the targeted customers
Learn to impressive talk (must imp)
Learn to catch customer attention
Learn to convince the people
Flexible to move around to different areas
Handle technicians and other people come across the business
Need to study complete marketing strategy offline and online
Ready to invest, should have space for showroom
Note :- It is always better to go with channel partner initially to get knowledge about
product, market, customer etc. This will provide a exposer to solar business and you will get
good experience to going forward in this business
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Difference Between various Solar Business Opportunities


Attributes
Investment & Margin

Business Model

Fee
Sale

Competition

Help

Franchise
Includes investment (for
setup, products, man
power, licensing, training,
marketing) and Margin is
huge

Should fallow same


business model as parent
fallows or suggest

Franchise Fee needs to


be paid to Franchisor
Will be entitled to sell
only his franchisor
products

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

Here different business


model can be followed

Channel Partners
Almost no/very minimal
investment. And margin
is good

One business model


which parent mfr/dis
suggest

No fee needs to be paid


No fee needs to be paid
to Mfr
to Mfr
can sell multiple
Can only sell parent
mfr/distributor products
company products but

can also become channel


partner for other mfr or
also become distributor

No competitor will be
Competitor might exist for Competitor might exist
present within some
same company, not
for same company,, not
region for same company garenteed
garenteed

Mfr will helps wherever it Not much help from mfr Not much help from mfr
is required

Solar Power Projects


Before going to solar projects, Lets understand some of the terminologies
What is solar power?
Solar power is converting sunlight into the electricity using PV (photovoltaic) panels
What is photovoltaic panels?
Photovoltaic is a method of converting sunlight directly in electricity. Photovoltaic
panels is the product used for this conversation.
What is Solar Projects ?
Solar Projects means the project which involves in electrifying the
house/commercial or a village etc using solar energy
Types of Solar Power Projects

Off-Grid Installation

Grid Tie Installation

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Off-Grid electric Installation

It is one of the schemes used in the solar power generation method. In this scheme,
Generated electricity from solar energy is not supplied to main electric grid or connected
to main electric grid. Fig below explains the same.
Below figure shows how Off Grid Solar Electric Install Works

Products involved in this type of Installation.

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

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What this business Involves ?


This business involves in electrifying house or commercial using solar energy.
This business works as below,
If house or any commercial building wants to get electricity from solar panels, first
thing you have to do is to study how much kilowatt hours electricity they use per
month
Next understand how much electric power they want to generate from solar power.
Lets say they want 100 percent.
Then determine how much watt solar panel is required to electrify completely.
Solar calculators are available to determine how much watt solar panel is required
based on there consumption.
Based on the calculator result, Need to get help or work under experienced solar grid
installaler for few installation to get practical experience of it. Also you need to get the
knowledge about Battery Sizing, Inverter Sizing and Charge controller.
Sizing depends on how much voltage and amps the products are using. This experience
will come by experience with installation
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Solar Power Project Off Grid Valuation


Investment :This can be done in two forms
-Work as channel partner and just provide customer lead who is interested in solar off
grid installation. Manufacturer will take care of installation and provide you the
commission out of it
Investmen Avg Margin
Liking Customer
ROI
Minimum Earning Per
-Purchase all items from manufacturer and take care of installation.
t
Month
(Range)
Depends
15 to 20%
Commercial
15% to If minimum one project is
whether
(Depends whether
buildings,
20%
done per month, A min of
you install you install or MFR
Farm land,
(again 15000rp can be earned.
or MFR
install. If you take
Houses
depen This depends on how much
install. For care of installation

ds on
watt power you install. But
1kw
you can earn more
installa can gain handful of money
general
percentage of
tion)
from lakhs to even crore
cost is
margin)
with experience
1,20,000

Grid Tied Solar Power Installation


It is one of the schemes used in the solar power generation method. In this scheme,
Generated electricity from solar energy is supplied to the main electric grid or connected
to main electric grid. Fig below explains the same.
Below figure shows how Off Grid Solar Electric Install Works

Products involved in this type of Installation.


Solar panel modules :- These panels are photovoltic panels which convert sunlight
into electric energy.
Battery :- These are rechargeable batteries, That is these batteries can be recharged
Charge controller :- It links solar panel, battery and electric load. It take cares
charging or de-charging the battery
Inverter :- Converts DC currect to alternate current. This inverter is connected to main
grid. When solar energy is less and not able to charge the battery then battery is
charged using main grid. If excess power is generated by solar panels and battery is fully
charged, then excess energy is sent to grid.
AC Loads :- These are the devices which run with AC Current
DC Loads :- These are the devices which run with DC Current
How this business works :It is similar to off-grid installation but necessary arrangements needs to be made such that
some amount of electric energy generated by solar energy can be supplied to Main Grid
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Solar Power Project Valuation


Investment :This can be done in two forms
-Work as channel partner and just provide customer lead who is interested in solar off
grid installation. Manufacturer will take care of installation and provide you the
commission out of it
Investmen
Margin
Favorable
ROI
Sale/day/month
-PurchaseAvg
all items
from manufacturer
andLoc
take care
of installation.
t
(Range)
Depends
15 to 20%
Commercial
15% to If min one project is done
whether
(Depends whether buildings,
30%
per month, A min of
you install you install or MFR Farm land,
(again 15000rp can be earned.
or MFR
install. If you take Houses
depen This depends on how
install. For care of installation
ds on much watt power you
1kw
you can earn wtill
install install. But can gain
general
more percentage
ation) handful of money from
cost is
of margin)
lakhs to even crore with
1,40,000
experience
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Skills Required
Skills required to start this business
Thorough knowledge on complete grid installation process
Need to get help or work under experienced solar grid installer
for few installation to get practical experience of it
Customer Convincing capacity
Move around to different areas
Ability to catch the customer attention
Thorough explanation on what customer benefit out of it

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Solar Manufacturing Unit


What is Manufacturing Unit ?
Manufacturing unit refers to the organization who is involved in manufacturering
the product.
What is Solar Manufacturing Unit ?
Solar Manufacturing unit refers to the organization who s involved in
manufacturering of solar products.
Pre Condition Before starting Solar Manufacturing Unit
Need to have very good knowledge of solar products and how it is manufactured
It is always better to start with Solar Home Light and Solar Generator
Solar water heater, pumpset, street light requires more investment and complex
dependent products like light pole, tubes, high watt panel etc.
Note :- Here solar products manufacturing refers to assembling the products. It is
not about solar panel manufacturering. Solar panel Manufacturering required
space, chemicals, Govt approvals and other things.
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Steps to start Solar Manufacturing Unit :-

Register the firm. Get guidelines from Charted Accountant on how to


register the firm as manufacturing unit
Study the solar products and its dependent products (like battery,
charge controller, inverter etc)
Get knowledge of electrical concepts, wire connections, soldering etc
Once all the things are done, buy the required products from either
manufacturer or distributors at low rate. Even if you buy in bulk rate
will still get lower
After buying the things, start assembling the products to make one
solar product.
Market the product which is obtained by assembling multiple
products

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Solar home light manufacturing:-

To manufacture/assemble the solar home light, need following


below products (which were used in grid installation)
Battery, charge controller, inverter, panel, box, wires, switches,
plugging point, any other points like chagrin point, unit name,
stickers
Once all the above are in place assemble them in box. Panel
should be outside the box as it will be on the top of house
After this, name the box using sticker and test it and then market
it

Note :- Take care of over battery charge


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Solar Home Light Valuation


Investmen
t
(Range)
Purchase
all the
items by
manufact
urer or
distributo
r at low
rate

Average
Margin

Liking
Customers

ROI

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

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

75%
If min one product is
to
sold per day, A min of
100% 1500rp can be earned.
This depends on how
much watt power you
install. But can gain
handful of money from
thousands to even
lakhs with experience

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Minimum Earning

Solar generator :-

Generators are used to generate and store electricity


Solar Generators are used to store the electricity generated by Solar.
You can design generator by packaging following below products under one box
Battery
Charge controller
Inverter
Plugging points
Solar panel should be outside the box
Note :- Also you need wire connections, soldering, switches as part of generators
etc
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Green Turtles
Technologies Pvt Ltd
Note :- Need to take care
of@over
charging

Solar Generator
Investme
nt
(Range)
Purchase
all the
items by
mfr or
distribut
or at low
rate

Average
Margin

Liking
Customers

ROI

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

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

75% If min one product is


to
solad per day, A min of
100% 1500rp can be earned.
This depends on how
much watt power you
install. But can gain
handful of money from
thousands to even laks
with experience

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Minimum Earning

Conclusion
This document just provides the basic information about solar,
solar business opportunities, solar power projects and solar
product manufacturing.
This document highlight the details specific to Karnataka Solar
Manufacturers. Data taken from analyzing within Karnataka
There are lot of solar manufacturers and distributors available in
market. Each one of them will provide atleast one of the business
scheme mentioned in the document
There are lot of other business that can be started with respect to
solar energy. We are coming up with one more document for the
same.
Also we are coming up with one more document with respect to
Solar, Current Government and Economy
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All the businesses mentioned here are not guaranteed for

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