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Distributed Energy
Contract Manufacturing Factories

Contract Manufacturing Factories

Bangalore, India.2019

14.9 %

IRR

6 years

Break Even Period

1.6 X

Target total return

7 years

Target investment period

Contract Manufacturing Factories

Bangalore, India.2019

14.9 %

IRR

6 years

Break Even Period

1.6 X

Target total return

7 years

Target investment period

Energy Customer Profile

Our Energy Customer is headquartered in Dubai and is a fast-growing consulting firm with a global footprint that includes international offices in Kenya, Hong Kong and India. They provide consulting solutions on areas of business strategy, technology, finance and human capital.

The proposed project is for powering the Energy Customers  factories in Bangalore, India 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 $549,299. Our Customer has 2 projects that are open for investment. Based on the site visit, installation capacity is as follows and we are quoting for the same.

    • Paper/Polymer Division – 650 kW
    • Apparels Division – 350 kW

A total of 1,000 KW can be installed in the above areas 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 7 years and cost per unit is $0.07 without change for the full lease period.

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 7 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 $549,299. 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 16 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 14.9% return on investment with a target total return of 1.6x and break-even period of 6 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 use bank guarantees.  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
$218,806 /- for 1-7 years Avg 26.47%
$949,213 /- for 8-13 years Avg 89.03%
$1,197,499 /- for 14-20 years Avg 90.35%

Investment Profile

Hypothetical Investment

$549,299

Total Returned

$870,213

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

Exide Solar Panels

Siechem Cables

Distributed Energy