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e-Learning Workshop:Solar Policy Intrepretation & Project ImplementationProcessTechno Commercial, Financing and Interactingwith CustomerBy Pulkit DhingraDirector, AHAsolar Pvt. Ltd1

Outline Needs of Financing Banks providing funds for Solar Objective of Techno-commercial Report Content of Techno-commercial Report Works Scheduling Project [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 20202

“It is not the strongest of thespecies that survives, nor themost intelligent that survives.It is the one that is the mostadaptable to change”- Charles [email protected]

AHA! SolutionsAHA!ProfessionalSolar PVInstallerGovernmentAgency (SNA,ConsumerCEI, on of Financing, Techno-Commercial and Communication with Client" 23 Apr. 20204

AHA! Solar’s TimelineEVENTSDATESInception of Idea of AHA! Rooftop Solar HelperOctober, 2015Research Project of “AHA! Rooftop SolarHelper” Mobile App made liveMarch, 2016Launch of Beta version of AHA! Rooftop SolarHelper Mobile App by Joint Secretary, MNRE,GoISeptember, 2016Inauguration of “AHA! Solar Jharkhand” MobileApp/ Portal by Secretary, Energy Department,GoJJune, 2017AHA! Solar Incorporated as Private LimitedCompanyJuly, 2017Inauguration of “AHA! Solar Gujarat” Portal byGujarat Energy Development Agency (GEDA)September, 2018Received Start-up India recognition byDepartment for Promotion of Industry andInternal Trade (DPIIT), GoIMarch, 2019Surya Gujarat Portal DevelppedMarch, 2019Launch of AHA! Solar Helper Pro for EPCCompany and ConsultantsDecember, [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 20205

Activities and ServicesSECTORGovernment/Public SectorACTIVITY / SERVICEUnified Single WindowProgramme Management ToolWork Management SoftwareSolar EPCCompany/ PVInstallerLead and Site Survey ToolProfessionals/ConsultantsSolar Project Management ToolThird Party Inspection Online ToolProject Based ConsultancyEnd ConsumerAdvisory (Policy & Regulation)Aggregator [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 20206

AHA Rooftop Solar Helper Pro SoftwareDPRProjectProposalSite asolar.inCommissioningAHA ProMonitoring"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 20207

Financing Needs of Solar ProjectsCAPEX ModelConsumerPreconstructionAdvanceRESCO ModelDeveloperErnst DepositMoney (EMD)ConsumerNilDeveloper Ernst DepositMoney es basedpaymentWorking Capital Cash based Non CashbasedNilMilestones basedpayment (Equity Debt)PostConstructionFinal PaymentPerformance BankGuaranteesLetter of CreditNilO&MRegular O&MPaymentRegular O&MExpenseNilRegular [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 20208

Financing Needs- Under CapexDeveloperConsumer Long term funds needed forfunding projectFund projects with their ownfunds (Equity) and Loans (Debt)Loans are available from banks likePunjab National Bank (PNB), StateBank of India (SBI), Small IndustriesDevelopment Bank of India (SIDBI)Usually extension (top up) loanson Housing Loans for residentialconsumers or on Corporate loansfor Industrial and [email protected] Short term funds needed forproject Fund projects with own funds andWorking Capital Loans"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 20209

Financing Needs- Under RESCODeveloperConsumer No investment requiredWould need working capital limitsfor Revolving Letter of [email protected] Long term funds needed forfunding project Fund projects with their ownfunds (Equity) and Loans (Debt) RESCOs are funded through fundsfrom promoters or private equityso far Currently, most of the projects arefunded through equity alone (noterm loan) Loans are available from banks likePunjab National Bank (PNB), StateBank of India (SBI), Small IndustriesDevelopment Bank of India (SIDBI)"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202010

Banks Providing Funding for Solar Projects Canara Bank – Housing cum Solar LoanLoan - 20% of eligible quantum under Housing Loan Component OR 80%of the Cost of the Solar system OR Rs. 10.00 Lacs Whichever is n/ SyndicateBank – Syndsolar Jyothi Scheme IREDA – for 1 MW and above project capacity / tpage.aspx?lid 1496 Bank of Maharashtra - Mahabank Renewable Energy Equipmentshttp://www.bankofmaharashtra.in/bom marathi/renewable equipments.asp Punjab National Bank: [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202011

Objective of Techno-Commercial ReportTo know the techno economical feasibility of the projectTo know about the promoterTo know about the site detailsTo know technical details of the projectTo know Energy Yield projection and life cycle [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202012

Objective of Techno-Commercial ReportTo know the economic and financial details – project cost, ROI etc.To know statutory requirements and compliancesTo know project construction schedule and execution planTo know and O&M plan and manpower requirementTo know risks and ways of [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202013

Content of Techno-Commercial Report About the Promoter About the Site Solar Resource Assessment Selection of suitable SPVRT Technology Plant Layout & Technical specifications Power Systems & Grid Interface Statutory requirements & [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202014

Content of Techno-Commercial Report Project Implementation ScheduleOperation & Maintenance (O&M) PlantEconomic Assessment & Financial AnalysisRisk AssessmentSensitivity ion of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202015

Motivation for Going SolarReducing their energy billPower during black / brown outsEnvironmental reasonsFinancial BenefitsGreen brandingRPO [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202016

First, convince yourself on the benefits of solarProvide references of past projectsArrange finance by having tie-ups with banks and /orinvestorsConvince the client on the financial benefits likepayback, IRR, AD benefit [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202017

Provide Solution as per Client’s needA client’s motivation for installing their PV system will play animportant role in the design process Thesystem should be designed to meet customer’s needs Understand the client’s expectations of their system andmake sure they are given correct information A customer must understand thatThe ‘income’ from a system is often only manifest as a reduction inenergy bills rather than a cheque A conventional grid-connected system does not provide powerduring blackouts Government financial incentives are highly variable - what ahousehold’s neighbours received 6 months ago may no longer beavailable [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202018

Recommended Information to Client Estimation of average daily electricity production Estimation of Annual Yield (annual electricity production) Estimation of electricity production in the best andworst months of the year Fraction of solar energy in his / her annual energyconsumption The financial benefits derived from this reduction inannual energy consumption The greenhouse gas savings in tonnes or kg of [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202019

Do’s & Don’t of Selling Solar Understand the market Explain the limitations of SPVRT system Streamline the sales process Conduct a Site Inspection Follow Standards and Industry Guidelines Understand the Laws, Regulations and Standards Explain the Quote Build a Reputation as a Market Leader Discuss Comparative [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202020

Don’ts Use incorrect terminology and jargon Size and quote a system without conducting an onsiteassessment Make unsupported claims Advertise a system by its yield Advertise financial benefits without context Relate energy production to energy use [email protected]"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202021

Benefits of Streamlining Business ProcessCost EfficiencyTime-SavingTime is precious! Makeefficient use of yourmost importantresource bystreamlining the workthat has to be carriedout on a day to daybasis.Long gone are the days when you have toprint loads of paper and assign a clerk totransfer it to the next department.Everything is digital these days, and theworkflow automation software will allowyou to get work done with a minimalworkforceIdentifyingBottlenecksTime is precious! Make efficient use ofyour most important resource bystreamlining the work that has to becarried out on a day to day basis.BetterCommunicationStreamlined communicationsaves time, avoids hassles andensures every member indifferent teams can seamlesslystay connected with [email protected] advantage of doing digital things is that you canalways save documents in the cloud, more convenient toaccess anytime and has timestamps to categorize them.The workforce can no longer play the blame game, andeveryone has to take individual responsibility fordocuments that need his or her timely attention.ClearDocumentation"Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 202022

e-Learning Workshop:Solar Policy Intrepretation & Project ImplementationProcessTechno Commercial, Financing and Interactingwith CustomerBy Pulkit DhingraDirector, AHAsolar Pvt. Ltd23"Session of Financing, Techno-Commercial andCommunication with Client" 23 Apr. 2020

Punjab National Bank (PNB), State Bank of India (SBI), Small Industries Development Bank of India (SIDBI) Usually extension (top up) loans on Housing Loans for residential consumers or on Corporate loans for Industrial and Commercial consumers "Session of Financing, Techno-Commercial and Communication with Client" 23 Apr. 2020