What are capital investments and capital budgeting? How does capital investment work? Can capital investment be related with solar projects? We look at all these questions in the presentation shared by Distributed Energy.

1. Distributed Energy -
How does capital investment work?
December 2020

2. Confidential - Distributed Energy Pte Ltd
Distributed Energy Overview
is a development and aggregation platform that connects renewable energy projects, primarily
solar with funders. We accelerate the deployment of renewable energy (solar) across the
developing world.
Distributed Energy

3. Confidential - Distributed Energy Pte Ltd
What is Capital Investment?
Capital Investment refers to money or assets a company uses to achieve and further its
business objective. Take for example- when an individual or a financial institution makes an
investment in a business, a sum of money is handed over as a loan or in return for a promise
of repayment or a share of the profits. In this sense, capital means cash. Capital investment
can be made through purchasing key long-term assets that will facilitate the business to
function smoothly. In this sense, capital means physical assets. This investment is done by
using its own cash reserves, or by seeking a loan from a bank.
A company can seek capital investment from any sources like venture capital firms, angel
investors and traditional financial institutions. The capital is used to develop its targets and
ultimately helps to increase the firms’ value.
Looking at the various sectors for the last decade, renewable energy had shown a significant
rise in its investment trends. The major portion of these investments is the capital for solar.

4. Confidential - Distributed Energy Pte Ltd
Role of Distributed Energy in Capital Investment
At Distributed Energy, we focus on leveraging our expertise in the renewable energy sector
by providing an aggregation platform that facilitates capital investments in distributed small-
scale solar projects across developing countries such as India, Middle East and East Africa.
Ultimately, our goal is to bridge the gap between the growing number of solar projects and
availability of funds for them. Many small-scale solar energy projects, especially in the
developing stage are unable take off due to lack of funding/ financial backing. Our focus on
this niche market puts us in a unique position that allows investors of all classes to invest in
an asset class that was traditionally available to larger institutions only. Expanding this
investment option to a broader range of investors means we are providing a largely untapped
service that is closely aligned with their values and also provides an attractive, annuity style
return on their investments.

5. Confidential - Distributed Energy Pte Ltd
What is Capital Budgeting?
After building the capital, the next part is making capital investment decisions i.e. capital
budgeting. Capital budgeting is basically allotting the capital investment funds of the firm in
the most effective manner and ensure attractive returns. Capital budgeting decisions mainly
focus on investing in various projects. This includes the criteria for choosing the appropriate
and right projects that will ensure prompt returns, growth in the long term, firm’s value, etc.
There are several measures that give an estimate of the firm’s return over several investment
projects. To be able to determine specific projects’ value, the three most commonly used
methods are:
1. Payback method
2. Net Present Value method (NPV)
3. Internal Rate of Return method (IRR)

6. Confidential - Distributed Energy Pte Ltd
Conclusion
With Distributed Energy, you can get investment options which work like annuities and diversify
your portfolio by creating investments in solar projects.
We resolve barriers and create the ideal conditions for investments. We provide our Investors a
hassle-free platform to invest in renewable energy projects.
Healthy Return
Potential
We provide suitable
investment structures for
solar energy as an asset
class with non- correlated
and stable annuity style
returns.
Tangible Asset
Ownership
Our hard assets will give you
another layer of reassurance.
We also use insurance,
project contracts and other
mechanisms to secure the
investment.
Experienced
Team
Our team draws on a wide and
deep range of experience not
only in the energy sector, but
also as investors across
various emerging markets.

7. Thank You
December 2020
Get in Touch : info@de.energy or visit www.de.energy