Presentation by Rajiv Bhatia of Alternergy on how to sell solar PV to commercial customers. UK solar rooftop market, challenges & opportunities, return on investment, selling to the customer, installer success factors.

1. SELLING TO COMMERCIAL CUSTOMERS
Alternergy & Zeversolar Installer Event
Rajiv Bhatia, Alternergy Ltd

2. Established in 2006, Alternergy is a top 3 UK solar distributor and the
highest ranking supplier dedicated solely to PV technology
ALTERNERGY –
QUALITY GREEN ENERGY SUPPLIERS

3. “We want to move the emphasis for growth away from large solar
farms and instead focus on opening up the solar market for the UK’s
estimated 250,000 hectares of south-facing commercial rooftops”
- Greg Barker, April 2014
UK GOVERNMENT PLEDGES SUPPORT
FOR UK ROOFTOP MARKET
• 250,000 Hectares of commercial roof space available
• Rooftop installations up to 1MW will no longer need planning
permission
• DECC pledges to explore how Green Investment Bank funding
can help support PV in community projects
• The Government aims to install 500MW of solar on it’s own
buildings before the next election

4. UK ROOFTOP MARKET
PROVIDES GREAT POTENTIAL
Solarbuzz predicts 0.5-1GW over next 2 years
Source DECC

5. • Government pledges up to 1GWp solar on it’s own land which will
“engage with full range of industry players, large and small”
 250MW commercial rooftop by next election
 Solar Strategy - a definite move away from Solar Farms to Rooftop
solar
 Industry and commerce operating as independent generators, to
create a “Big 60,000” – solar PV can be at the centre of this change
• Opportunities for new business models
 Combination with energy storage
 Generate and use electricity in situ – distributed energy
 Energy efficiency
 Consult DNO if they require a mechanism to limit maximum export of
energy into the grid i.e. larger systems could be installed
• Potential customers: retailers, supermarkets, shopping centres, car parks,
hotels, offices, civic buildings, farms, IT server centres, depots
COMMERCIAL SOLAR –
ATTRACTIVE TO NEWCOMERS?

6. Challenges
• Landlords and Tenants
• Roof Warranties & Liabilities
• Asbestos
• PPAs (DNO/Tenant)
• Obstructions and shading
• Maintenance costs
• Relatively small projects
• Financing
• Changing Government
policy
CHALLENGES VS OPPORTUNITIES
Opportunities
• Higher PPAs and subsidies
• No/ low planning risks (up to
50KW, maybe 1MW)
• Simpler design, faster installation
• Higher ROI (FIT & self
consumption)
= Better deal for owners & tenants
= Better margins for installers
= Long term sustainable business
model for all!

7. RETURN ON INVESTMENT
15.40% 600 650 700 750 800 850 900 950 1,000
£800 16.60% 18.40% 20.20% 22.01% 23.83% 25.69% 27.57% 29.49% 31.45%
£900 14.19% 15.80% 17.40% 19.00% 20.60% 22.21% 23.83% 25.48% 27.15%
£1,000 12.24% 13.71% 15.16% 16.60% 18.04% 19.48% 20.92% 22.37% 23.83%
£1,100 10.61% 11.97% 13.31% 14.63% 15.95% 17.26% 18.56% 19.87% 21.18%
£1,200 9.21% 10.49% 11.75% 12.98% 14.19% 15.40% 16.60% 17.80% 19.00%
£1,300 8.00% 9.21% 10.40% 11.55% 12.69% 13.82% 14.94% 16.05% 17.15%
£1,400 6.93% 8.09% 9.21% 10.31% 11.39% 12.45% 13.50% 14.54% 15.57%
£1,500 5.98% 7.09% 8.16% 9.21% 10.24% 11.25% 12.24% 13.22% 14.19%
£1,600 5.12% 6.19% 7.22% 8.23% 9.21% 10.18% 11.12% 12.06% 12.98%
£1,700 4.33% 5.37% 6.37% 7.34% 8.29% 9.21% 10.12% 11.01% 11.89%
£1,800 3.62% 4.63% 5.60% 6.54% 7.45% 8.34% 9.21% 10.07% 10.91%
£1,900 2.96% 3.94% 4.88% 5.80% 6.68% 7.54% 8.39% 9.21% 10.03%
£2,000 2.34% 3.31% 4.23% 5.12% 5.98% 6.81% 7.63% 8.43% 9.21%
£2,100 1.77% 2.72% 3.62% 4.48% 5.32% 6.14% 6.93% 7.71% 8.47%
£2,200 1.24% 2.16% 3.05% 3.90% 4.72% 5.51% 6.28% 7.04% 7.78%
£2,300 0.74% 1.65% 2.51% 3.35% 4.15% 4.93% 5.68% 6.42% 7.14%
£2,400 0.27% 1.16% 2.01% 2.83% 3.62% 4.38% 5.12% 5.83% 6.54%
£2,500 -0.18% 0.70% 1.54% 2.34% 3.12% 3.86% 4.59% 5.29% 5.98%
CostPerKiloWatt
Electricity Yield: Kilo Watt Hours Generated Per Kilo Watt
100 kW System
FiT: 10.71p | ROI: 15.4%
250 kW System
FiT: 6.61p | ROI: 9.4%

8. Based on:
 50% Self Consumption only
 Energy Inflation of only 4% pa
 Energy Yield of 850 kWh per kW
 8 pence per kWh electricity cost from DNO
• Higher Self Consumption of 80%, higher energy yield of 900
kWhrs and an energy inflation rate of 6% would provide an
ROI of:
20.1% (100 kW) and 14.3% (250 kW)
• Increase in value of property for the building owner
• Security of supply for the tenant/ user i.e. energy costs are
kept low
• Protection against future blackouts and brownouts from 2016
when power plants start getting decommissioned
RETURN ON INVESTMENT

9. • Find a superhero! Engage management - Rising energy prices are the number
one concern for European households
• Think of the customers objectives
 minimal energy bills
 maximum financial returns (demonstrable ROI) – we can help
 low carbon/ eco friendly/ corporate social responsibility?
• Counter arguments
 Energy prices are rising rapidly
 NIMBYism should prevent fracking - hugely contentious; will not save us
 Middle East and Russia are not stable energy producing areas
 Nuclear is still not an agreed option – massive lifetime maintenance costs
 Security of Supply – power plants being decommissioned 2016 onwards
• Ask the customer: What would you need in order to make a decision today?
Draw out their objections
• Quality products will last 20/25 years - security & reputation – Would you buy a
Dacia car if you could buy a BMW for an extra 10%?
SELLING TO THE CUSTOMER

10. • How do I measure ROI?
• What happens if something goes wrong?
 Contract should cover this
 Who is responsible? – Landlord, Tenant, Installer?
 Insuring the System – Critically important
• What happens if I want to sell the building?
• Provide roof warranties and insurances
• Roof Condition: What happens if we need to fix the roof?
• Monitor performance
• Provide yield and installation warranties
• Learn how to make successful Ofgem application
THE DEVIL IS IN THE DETAIL

11. INSTALLER SUCCESS FACTORS
• Diversify product portfolio for lots of roof types
• Health & safety - ensure it meets European standards
• Optimisation - make suboptimal rooftops accessible
• Monitoring - work with smart technology
• Work with partners who are reliable, with a UK track record
• Use quality products with a secure warranty
• Get the message out there
• Talk to us! We are experienced in delivering commercial
systems and can help you through the process

12. We put the needs of the installer first. We will go the extra
mile to demonstrate our commitment to you because we think
that’s important.
“
”
rajiv@alternergy.co.uk