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Distributed Energy
Solid Waste Processing Factory

Solid Waste Processing Factory

Madhya Pradesh, India.2020

17.3 %

IRR

7 years

Break Even Period

2.3 X

Target total return

15 years

Target investment period

Solid Waste Processing Factory

Madhya Pradesh, India.2020

17.3 %

IRR

7 years

Break Even Period

2.3 X

Target total return

15 years

Target investment period

Energy Customer Profile

The Energy Customer has been in the business of waste processing and management since  2015 and is responsible for the the processing of the municipality’s solid waste.

The proposed project is for powering the Energy Customers waste processing factory, located in Madhya Pradesh, India using rooftop solar. As a result of this installation, the solar plant will provide the Energy Customer with their required day-to-day energy requirements for operations and will also off-set their dependance on the electricity grid. This alternative solution to energy generation via a clean source, will also reduce their carbon footprint and associated environmental impacts. Based on the proposed installation capacity, the system cost is $51,000.

A total of 100 KW can be installed in the Customers premises. Distributed Energy provides the Customer the option of BOOT Model. Under this plan, the solar plant will be installed in the clients premises. The lease duration is 15 years and cost per unit is $0.07 without change for the full lease period.

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 15 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 $51,000. 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.

 

Once the solution design is approved and arrangement of finance is finalised, the procurement of materials is initiated, followed by installation and commissioning of the project. A detailed timeline showcasing the breakdown of milestones and deadlines will be provided to the relevant parties.

What fees will I be paying to Distributed Energy?

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

Location

Why Invest?

The proposed project has a 17.3% return on investment with a target total return of 2.3x 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. From a clean energy mobilisation perspective,  the potential electricity bill savings the Energy Customer will be making over time as a result of this project implementation are substantial.

Amount % Saving

$19,704/- for 1-5 years

Avg 27.20%

$34,408 /- for 6-10 years

Avg 45.26%

$39,795/- for 11-15 years

Avg 49.85%

Investment Profile

Hypothetical Investment

$51,000

Total Returned

$120,318

*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.

Distributed Energy