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Frequently Asked Questions

What type of projects does Distributed Energy primarily fund?

Distributed Energy finances commercial and industrial sector solar projects that have an energy consumption requirement equivalent to 50 kW – 20 MW. The minimum and maximum may vary depending on the location of the plant and financial details of the underlying customer. 

Our funding structure normally involves three options: Power Purchase Agreements (PPAs), Operating Leases and Loans.

What sectors or customers does Distributed Energy focus on?

Distributed Energy focuses primarily on Commercial and Industrial sector projects. Commercial and Industrial sector businesses require large amounts of energy to run their day-to-day operations. Additionally, more often than not, they are charged at a higher electricity tariff bracket compared to other users. As a result, we are able to provide a more competitive Power Purchase Agreement (PPA) rate, resulting in substantial electricity cost savings and avoided CO2 emissions. Examples of sectors we have provided solar for so far include car dealerships, hospitals, universities, malls, schools, warehouses, manufacturing facilities, commercial buildings, hotels, tea plantations, amongst others. 

Distributed Energy is open to Government and large residential community solar financing (PPAs, Leases or Loans). Please note however, these are not a priority for us.

I am a commercial/industrial sector business owner – what are the steps I need to take to list my project on Distributed Energy’s aggregation platform?

Before we submit a proposal for any project, Distributed Energy conducts a preliminary screening to determine the project viability – both in terms of technical and financial feasibility. In order to do this, we require the following information from you:

  • Two  year electricity bills.
  • Audited financials of customer’s business from the last two years.
  • Site location (google map link).

 

Normally these 3 sets of documents allow us to offer a budgetary proposal. If we need more information given specific circumstances we will let you know.

 

If you are happy with the proposal, once you sign the term sheet, we arrange a site visit and finalise the agreement. Construction normally starts within one month of signing the agreements and we go live normally within 3 to 8 months of signing depending on the size of the project and regulatory requirements.

What is the scope of responsibility undertaken by Distributed Energy when deploying solar projects?

Distributed Energy is involved in the full life cycle of the project – starting from financing, solution design, procurement, construction, commissioning and operations and maintenance (O&M) for the duration of the Power Purchase Agreement term.

From a customer point of view, we offer minimum hassle. 

What regions are Distributed Energy primarily focused on deploying solar power?

Distributed Energy wants to accelerate the deployment of renewable energy across the developing world. Our areas of operation are Africa, India and the Middle East. Within Africa, we are specifically focused on East Africa.

As a customer, what is my incentive to partner with Distributed Energy and transition to solar power?

There are two main benefits you can expect by working with us:

  1. Hassle Free – we design, size, procure, finance, build and operate the solar plant – you focus on your core business and we will focus on solar
  2. You pay as you save money – our Power Purchase Agreement (PPA) or lease will offer a rate that is better than the grid tariff, ensuring substantial electricity bill savings. Generally speaking, we offer rates that are at least 15% lower than what you are currently paying.

How long does it take to commission a plant?

Normally, project viability evaluation takes a few days. Once you sign the term sheet and proposal, normally the agreements are signed within 1 to 2 weeks. Depending on the size of the project, it can take anywhere from 8 weeks to 8 months. So, a plant will normally go live within 2 to 10 months of signing the Power Purchase Agreement.

What is the requirement for reference power whenever the grid supply is off? For example, say there is a power failure or a shut down for maintenance work by the respective utility company?

Solar requires a reference voltage to operate. Reference power can be obtained from the grid, battery or from the generator. Without being connected with the grid or a battery or a generator, solar cannot function. So if you want to go off-grid, it can only be done with solar + battery or solar + generator. If you completely operate on generators than solar can save you a lot of money during the day on diesel consumption.

Will the Customer be charged only for the quantity supplied during a monthly billing period?

If we sign a power purchase agreement (PPA), the Customer will only be billed for the quantity of power generated. All of the power generated has to be consumed by the customer. As part of our billing process, Distributed Energy will show transparently during the process of generation what has been consumed so far. More importantly, we only fund 70% of the customer’s average load to ensure that the customer consumes all the power that is generated. 

If we sign an operating lease, than the customer will pay for the lease independent of power generation or consumption. 

If a roof repair is required after the installation of the solar plant, say to arrest a rainwater leakage, whose scope will it be under?

This will be a localized area repair and unless the Customer needs to take out a large area then Distributed Energy should not have any issue. As part of our installation process, we will conduct an audit after the installation of the solar plant to ensure there is no damage to the roof caused by Distributed Energy. If there are any roof fixes required unrelated to damage due to the solar plant, it will fall under the Customer’s scope.

Will Distributed Energy maintain the roof during the Power Purchase Agreement period? For example, suppose there is a deterioration of the roof due to the mounting of solar modules.

Maintenance of the roof will remain with the Customer, however Distributed Energy will rectify any issues due to the solar mounting.

Will Distributed Energy cover the insurance for the entire installation?

Distributed Energy will take plant and machinery insurance during the installation of the plant. The insurance period will be for the period of the Power Purchase Agreement.

What is the minimum off-take from the Customer’s side and minimum supply from Distributed Energy’s side?

As part of the Power Purchase Agreement shared with the Customer, there is a minimum guarantee clause as well as a deemed generation clause which addresses the minimum off-take and minimum supply from the solar plant. The only variable in availability of power available for consumption is a result of poor weather or any shutdowns due to grid failure etc.

What will happen if Distributed Energy does not provide the minimum generation or the Customer has a factory shutdown? What will be the compensation in case of non-compliance of this minimum level on either side?

In the Power Purchase Agreement signed between Distributed Energy and the Customer, there is a minimum generation clause as well as a deemed generation clause that will come into effect. These clauses are designed to compensate either party on the basis of annual generation.

Does Distributed Energy require any form of security deposit from the Customer before commissioning of the solar plant?

Distributed Energy requires a 3 to 6 month security deposit (sum equivalent to 3 or 6 months of electricity bill). The minimum-security deposit amount will be defined on the outcome of the financial due diligence conducted by our team. The security deposit will be returned to the Customer at the end of the PPA term, subject to there being no breach of contract terms.



How does Distributed Energy determine the rate per unit for the Energy Customer? How does this rate compare to the other solar service providers out there in the market?

Our goal is to provide our Customers with a minimum of 15% savings per unit. In some cases, depending on the existing grid tariff rate (i.e. high existing tariff rate), we are able to provide a tariff rate that provides savings beyond 15%. Additionally, unlike other players in the market, our proposals will have several Power Purchase Agreement rates and terms for the Customer to choose from. Generally speaking, longer term Power Purchase Agreement will have a higher solar tariff discount rate when compared to shorter term Power Purchase Agreements. However, over the long term the Customers will save more on their electricity through shorter term Power Purchase Agreements.

What type of projects does Distributed Energy primarily fund?

Distributed Energy finances commercial and industrial sector solar projects that have an energy consumption requirement equivalent to 50 kW – 20 MW. The minimum and maximum may vary depending on the location of the plant and financial details of the underlying customer. 

Our funding structure normally involves three options: Power Purchase Agreements (PPAs), Operating Leases and Loans.

What sectors or customers does Distributed Energy focus on?

Distributed Energy focuses primarily on Commercial and Industrial sector projects. Commercial and Industrial sector businesses require large amounts of energy to run their day-to-day operations. Additionally, more often than not, they are charged at a higher electricity tariff bracket compared to other users. As a result, we are able to provide a more competitive Power Purchase Agreement (PPA) rate, resulting in substantial electricity cost savings and avoided CO2 emissions. Examples of sectors we have provided solar for so far include car dealerships, hospitals, universities, malls, schools, warehouses, manufacturing facilities, commercial buildings, hotels, tea plantations, amongst others. 

Distributed Energy is open to Government and large residential community solar financing (PPAs, Leases or Loans). Please note however, these are not a priority for us.

I am a commercial/industrial sector business owner – what are the steps I need to take to list my project on Distributed Energy’s aggregation platform?

Before we submit a proposal for any project, Distributed Energy conducts a preliminary screening to determine the project viability – both in terms of technical and financial feasibility. In order to do this, we require the following information from you:

  • Two  year electricity bills.
  • Audited financials of customer’s business from the last two years.
  • Site location (google map link).

 

Normally these 3 sets of documents allow us to offer a budgetary proposal. If we need more information given specific circumstances we will let you know.

 

If you are happy with the proposal, once you sign the term sheet, we arrange a site visit and finalise the agreement. Construction normally starts within one month of signing the agreements and we go live normally within 3 to 8 months of signing depending on the size of the project and regulatory requirements.

What is the scope of responsibility undertaken by Distributed Energy when deploying solar projects?

Distributed Energy is involved in the full life cycle of the project – starting from financing, solution design, procurement, construction, commissioning and operations and maintenance (O&M) for the duration of the Power Purchase Agreement term.

From a customer point of view, we offer minimum hassle. 

What regions are Distributed Energy primarily focused on deploying solar power?

Distributed Energy wants to accelerate the deployment of renewable energy across the developing world. Our areas of operation are Africa, India and the Middle East. Within Africa, we are specifically focused on East Africa.

As a customer, what is my incentive to partner with Distributed Energy and transition to solar power?

There are two main benefits you can expect by working with us:

  1. Hassle Free – we design, size, procure, finance, build and operate the solar plant – you focus on your core business and we will focus on solar
  2. You pay as you save money – our Power Purchase Agreement (PPA) or lease will offer a rate that is better than the grid tariff, ensuring substantial electricity bill savings. Generally speaking, we offer rates that are at least 15% lower than what you are currently paying.
How long does it take to commission a plant?

Normally, project viability evaluation takes a few days. Once you sign the term sheet and proposal, normally the agreements are signed within 1 to 2 weeks. Depending on the size of the project, it can take anywhere from 8 weeks to 8 months. So, a plant will normally go live within 2 to 10 months of signing the Power Purchase Agreement.

What is the requirement for reference power whenever the grid supply is off? For example, say there is a power failure or a shut down for maintenance work by the respective utility company?

Solar requires a reference voltage to operate. Reference power can be obtained from the grid, battery or from the generator. Without being connected with the grid or a battery or a generator, solar cannot function. So if you want to go off-grid, it can only be done with solar + battery or solar + generator. If you completely operate on generators than solar can save you a lot of money during the day on diesel consumption.

Will the Customer be charged only for the quantity supplied during a monthly billing period?

If we sign a power purchase agreement (PPA), the Customer will only be billed for the quantity of power generated. All of the power generated has to be consumed by the customer. As part of our billing process, Distributed Energy will show transparently during the process of generation what has been consumed so far. More importantly, we only fund 70% of the customer’s average load to ensure that the customer consumes all the power that is generated. 

If we sign an operating lease, than the customer will pay for the lease independent of power generation or consumption. 

If a roof repair is required after the installation of the solar plant, say to arrest a rainwater leakage, whose scope will it be under?

This will be a localized area repair and unless the Customer needs to take out a large area then Distributed Energy should not have any issue. As part of our installation process, we will conduct an audit after the installation of the solar plant to ensure there is no damage to the roof caused by Distributed Energy. If there are any roof fixes required unrelated to damage due to the solar plant, it will fall under the Customer’s scope.

Will Distributed Energy maintain the roof during the Power Purchase Agreement period? For example, suppose there is a deterioration of the roof due to the mounting of solar modules.

Maintenance of the roof will remain with the Customer, however Distributed Energy will rectify any issues due to the solar mounting.

Will Distributed Energy cover the insurance for the entire installation?

Distributed Energy will take plant and machinery insurance during the installation of the plant. The insurance period will be for the period of the Power Purchase Agreement.

What is the minimum off-take from the Customer’s side and minimum supply from Distributed Energy’s side?

As part of the Power Purchase Agreement shared with the Customer, there is a minimum guarantee clause as well as a deemed generation clause which addresses the minimum off-take and minimum supply from the solar plant. The only variable in availability of power available for consumption is a result of poor weather or any shutdowns due to grid failure etc.

What will happen if Distributed Energy does not provide the minimum generation or the Customer has a factory shutdown? What will be the compensation in case of non-compliance of this minimum level on either side?

In the Power Purchase Agreement signed between Distributed Energy and the Customer, there is a minimum generation clause as well as a deemed generation clause that will come into effect. These clauses are designed to compensate either party on the basis of annual generation.

Does Distributed Energy require any form of security deposit from the Customer before commissioning of the solar plant?

Distributed Energy requires a 3 to 6 month security deposit (sum equivalent to 3 or 6 months of electricity bill). The minimum-security deposit amount will be defined on the outcome of the financial due diligence conducted by our team. The security deposit will be returned to the Customer at the end of the PPA term, subject to there being no breach of contract terms.



How does Distributed Energy determine the rate per unit for the Energy Customer? How does this rate compare to the other solar service providers out there in the market?

Our goal is to provide our Customers with a minimum of 15% savings per unit. In some cases, depending on the existing grid tariff rate (i.e. high existing tariff rate), we are able to provide a tariff rate that provides savings beyond 15%. Additionally, unlike other players in the market, our proposals will have several Power Purchase Agreement rates and terms for the Customer to choose from. Generally speaking, longer term Power Purchase Agreement will have a higher solar tariff discount rate when compared to shorter term Power Purchase Agreements. However, over the long term the Customers will save more on their electricity through shorter term Power Purchase Agreements.

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