RESCO Proposal - Nivas

7/17/2019 RESCO Proposal - Nivas

http://slidepdf.com/reader/full/resco-proposal-nivas 1/3

V.Nivas

CEO

Email: [email protected]

Office Address: Tech Fusion Labs Pvt. Ltd., Plot no.27, 2nd Cross Street, Wood Creek County, Nandampakkam,

Chennai-600016. Phone: +91 044 4285 7771, Internet: www.techfusionlabs.com

PROPOSAL SEEKING INVESTMENT FOR ROOFTOP SOLAR PROJECTS

UNDER RESCO MODEL

Abstract:

This proposal is seeking investment to develop 2 MW of solar rooftop projects in

Tamil Nadu with an investment requirement of 12.6 Crores at an interest rate of 8% for a

repayment period of 10 years. We aim at installing 5 MW in year 2 and 10 MW in year 3.

The proposal contains the current energy demand and solar installation scenario in Tamil

Nadu, our strength and the financial viability of the proposal.

About RESCO:

RESCO stands for Renewable Energy Services Company. We first identify potential

clients who would be willing to utilize solar as their primary / secondary power source. We

then do a techno economic analysis and we see whether the client is investment worthy. If so,

we will invest in the solar project and we would act as a Renewable Energy supplying

company. The following conditions will be checked by us when a client comes to us for

RESCO based solar power.

1. A strong 2 to 3 year balance sheet is necessary to accept their proposal.

2.

Ample roof space with a minimum of shadow free zone of 10 Sq.m / kW.3. A technical feasibility to accommodate the required solar PV energy along

with their Electricity board power.

RESCO market in Tamil Nadu:

The Government of Tamil Nadu had announced promising solar policies in the past 3

years, and the response from the private players who wish to install solar was extraordinary.

However, due to various non – technical and political issues, these policies never took off and

clients are very eager to use solar power.

The current Electricity Board tariff of Tamil Nadu ranges from Rs.7.5 to Rs.8.5 / unit

for corporate and educational clients. We have targeted these customers thereby they utilize

our solar power than the conventional power at 5% lesser cost.

Below is the agreement that customer will have with us along with the Investor.



V.Nivas

CEO




Supply electricity @ PPA price

Guarantee, Security deposit and monthly energy

consumption payment

Fig.1. Flowchart between Investor, us and client

Business Proposal:

Cost to develop 2 MW of plant (For year 1) = Rs.14 Crores

Investment needed from Investor = Rs.12.6 Crores (90%)

Investment from our company (RESCO Developer) = Rs.1.4 Crores (10%)

Repayment Period = 10 Years

Rate of interest = 8%

Project IRR = 26.98%

Average DSCR = 1.08

In Tamil Nadu climatic conditions, a 100kW plant can generate a minimum of

1,50,000 units.

Minimum PPA rate with the corporate client – Rs.7+2% escalation every year

Approximate revenue generation every year = Rs.10.5 Lakhs

Customer Requirement

for 100kW

Investor – 90%

Investment in form of

loan to RESCO

RESCO Company – 10%

investment, developing

the project and O&M

Repay loan in

10 years



V.Nivas

CEO




LOAN REPAYMENT SCHEDULE

FINANCIAL INSTITUITION Rs.in Lakhs

Year

Inst.

No.Op.Bal. Inst. Cl.Bal.

Interest

for said %Interest Principle Total

1 63,00,000 3,15,000 59,85,000 2,52,000

4,91,400 6,30,000 11,21,400 12 59,85,000 3,15,000 56,70,000 2,39,400

3 56,70,000 3,15,000 53,55,000 2,26,800

4,41,000 6,30,000 10,71,000 24 53,55,000 3,15,000 50,40,000 2,14,200

5 50,40,000 3,15,000 47,25,000 2,01,600

3,90,600 6,30,000 10,20,600 36 47,25,000 3,15,000 44,10,000 1,89,000

7 44,10,000 3,15,000 40,95,000 1,76,400

3,40,200 6,30,000 9,70,200 48 40,95,000 3,15,000 37,80,000 1,63,800

9 37,80,000 3,15,000 34,65,000 1,51,200

2,89,800 6,30,000 9,19,800 510 34,65,000 3,15,000 31,50,000 1,38,600

11 31,50,000 3,15,000 28,35,000 1,26,000

2,39,400 6,30,000 8,69,400 612 28,35,000 3,15,000 25,20,000 1,13,400

13 25,20,000 3,15,000 22,05,000 1,00,800

1,89,000 6,30,000 8,19,000 714 22,05,000 3,15,000 18,90,000 88,200

15 18,90,000 3,15,000 15,75,000 75,600

1,38,600 6,30,000 7,68,600 816 15,75,000 3,15,000 12,60,000 63,000

17 12,60,000 3,15,000 9,45,000 50,400

88,200 6,30,000 7,18,200 918 9,45,000 3,15,000 6,30,000 37,800

19 6,30,000 3,15,000 3,15,000 25,200

37,800 6,30,000 6,67,800 1020 3,15,000 3,15,000 - 12,600

Total 63,00,000 26,46,000 26,46,000 63,00,000 89,46,000

Documents

RESCO Proposal - Nivas