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Distributed Energy
Car Dealership

Car Dealership

Bangalore, India.2020

16.3 %

IRR

7 years

Break Even Period

2.8 X

Target total return

20 years

Target investment period

Car Dealership

Bangalore, India.2020

16.3 %

IRR

7 years

Break Even Period

2.8 X

Target total return

20 years

Target investment period

Energy Customer Profile

Started in 2007, the Energy Customer retails new and used automobiles. The Customer offers cars, vans, SUVs, and trucks, as well as renders financing, leasing, car parts, and auto services in India.

The proposed project is for powering the Energy Customer facility using rooftop solar, off-setting the use of power from the grid. This is a means not only to reduce the energy paid to the electricity board but also for preserving the environment, by using a clean source. Based on the proposed installation capacity, the system cost is $82,817. Based on the site visit, installation capacity is 140 kW and we are quoting for the same. Distributed Energy provides the Customer the option of BOOT Model. Under this plan, we will install the solar system at the Customer’s premises. The lease duration is 20 years and cost per unit is $0.07.

Location

Power Purchase Agreement

How do distributions work?

In terms of monthly payment, the Energy Customer is only charged on the basis of power produced. Under our current Power Purchase Agreement (PPA), parties involved agree to a rooftop lease for the full lease period on a non-chargeable basis and also an O&M contract with Distributed Energy. The lease period is 20 years and the degradation of the asset is 1% per annum – beyond the lease period, the project will be transferred to the Customer at a mutually agreed residual cost. The total investment percentage by the Energy Customer is nil. Ownership of the project is Investor via Distributed Energy. The maximum investment amount is $82,817. Solar panels come with a product warranty of 5 years and performance warranty of up to 25 years. Solar inverters will have a warranty of 5 years.

 

Project schedule envisages the project commissioning in 8 weeks from the date of approval of design and arrangement of finance. Once the design is approved, procurement is started followed by installation and commissioning.

What fees will I be paying to Distributed Energy?

Distributed Energy share, including O&M fees, is 20% of revenue generated monthly.

Why Invest?

The proposed project has a 16.3% return on investment with a total target return of 2.8x and break-even period of 7 years. As the Investor, you shall be the owner through us of the solar asset for the PPA period and reserve the right to hypothecate the asset if necessary. As an additional form of security, we will have a bank guarantee. From a clean energy mobilisation perspective, percentage savings the Energy Customer will be making over time as a result of this project implementation are substantial.

Amount % Saving

$60,107/- for 1-5 years

Avg 43.28%

$70,901 /- for 6-10 years

Avg 48.63%

$81,852/- for 11-15 years

Avg 53.47%

$92,987 /- for 16-20 years

Avg 57.86%

Investment Profile

Hypothetical Investment

$82,817

Total Returned

$233,934

Distributions Energy

*Note : All calculations and data presented are deemed to be accurate, but accuracy is not guaranteed. The projected pro forma IRR are intended for the purpose of illustrative projections to facilitate analysis and are not guaranteed by Distributed Energy or its affiliates and subsidiaries. Actual returns on investment may vary depending on tax, insurance and other increments.

Partners on the Project

ABB Solar Inverters

Nordic Asia Combiner Boxes

Exide Solar Panels

Distributed Energy