ABOUT PV CONSULT (Independent Solar Consulting)
We are seeking a +/-50% working investor that can add value by way of technical, management and/or business development.
The current owner comes from a semi technical IT and project management background with a predominantly sales and marketing approach, he has been in the solar business for 5 years as a business development manager for EPC’s.
He identified that renewable energy was a growing market and when aligned to certain finance packages made commercial solar highly desirable.
The main shareholder has other business interests has recently been diagnosed with throat cancer, whilst not terminal, he has decided to seek a suitable partner to join on the journey and share the workload and the future upside.
With multiple EPC’s all offering very similar services and most supplying the same panels and inverters, we noted clients seeking to go solar are often faced with a difficult buying decision.
PV Consult offers an independent and transparent way to find the most cost effective and credible supplier for their site.
The choice of EPC/Construction partner becomes based on different designs, availability and price. PV Consult was borne out of seeing how competitive the EPC market had become and that there was a need to offer a client an independent way to secure their solar and guide them through the journey… all at no cost to the client and NOT to compete with EPC's.
The office is based in CAPE TOWN and has 5 staff and various sub contractors. PV Consult has found a unique niche in the commercial solar market, offering specialized services and reports to potential clients seeking options to implement solar on their commercial buildings. This niche allows a differentiator amongst a heavily traded market of installers.
PV Consult also offers consulting for IPP,s (Independent Power Producers) on aspects such as building a solar farm and Wheeling electricity from point A-B.
As Independent Solar Consultants, we are not aligned to any one specific Solar company and provide clients with independent advice and assistance on their solar journey.
We secure our own clients by way of telesales marketing and via partners.
FINANCIAL FEASIBILITY REPORT
Our core differentiator is to offer a range of services, usually commencing with a detailed independent financial feasibility study to assess the exact viability of going solar. The report provides a full range of financial indicators against a base cost price, such as ROI and payback, we consult on the competing finance packages, including PPA’s and bank finance.
If the client then wishes to explore further, the next stage is a detailed and transparent tender document. The purpose being to allow the multiple EPC’s the ability to tender based on a standard agreed specification.
We have built our own custom software that provides an independent Financial Feasibility study that provides a client with an exact understanding of the savings from solar, this allows them to understand the benefits and costs applicable PRIOR to assessing which supplier, or finance model to secure.
This report takes into account and delivers on the variable units saved under different tariff structures and provides the client with a detailed 365 day analysis of historical consumption data and compared to an accurate proposed solar size (Helioscope). The report includes any SSEG Feedback & Peak Demand Analysis leading to any tariff optimisation (if applicable)
The firm was established in June 2021 with an existing pipeline that dated back 2019 . We hit the ground running after the cancellation of the sales agency by ACES AFRICA in June 2021 and as such had a carry over investment of client opportunities.
The period to end 2021 was predominantly sales orientated and the development of our core internal software and systems, we invested in staff & IP and within 6 months (end of 2021) we had secured significant new signed business that was ready for deployment via the tender, at this point the MD/Owner was diagnosed with cancer.
The pipeline has been continually enhanced and PV Consult are sitting with signed business for Q1 in the order 15 confirmed clients which should generate a net revenue in the order of over R1m revenues. We anticipate the gross billable revenues for 2022 in the order of R3m .
REVENUES/MARGINS & CASH FLOW
We established quickly that the best way to engage was on risk with the project based on securing a introduction fee from the successful tender supplier.
Where a project is financed under a PPA then cash flow can be negotiated as 100% payable on signature.
Typically cash flow from signing can be 3-6 months.
In the future we endeavour to ask clients pay a nominal deposit of (say) R10,000
Typical margins on a client would be as per our standard terms, ie small sites under 100 kWp we can secure +/- 10% of the selling price , mid sized clients 100kWp – 500 kWp we work on 5% and large sites and solar farms on 2.5%.
The EPC’s have historically worked on 20%-30% GP. Our current monthly direct costs are R50K-R75k pcm that includes staff wages and office overheads.
Staff have been on a promise of increases. We project to be cash positive and profitable from end of Q1 onwards.
Starting PV Consult was a gamble, however to-date we are pleased with the result and clients tend to like the story and our deliverables. Our limitation at present is in the delivery side of the tenders and managing growth.
DIRECT TELESALES /GROWTH
We found our best value for securing new clients was to use an old fashioned direct telesales department of 1 or 2 staff. This was perceived as providing a better ROI than attempting to compete with on line/Google Adds. With the limited resources our marketing has been reduced whilst we concentrate on delivering on the signed projects in our grasp.
If and when funds and time allow we would engage in further direct on line marketing to spread the word.
In the pipeline we have various large solar farm projects and wheeling opportunities, these could be of significant high value and annuity.
One area we have secured and wish to expand is in the “white label” of our engine and the ability to offer our reports to other synergy companies. Typically utility, property managers or electrical firms have access to a client base yet do not have the solar skills to compete in the EPC market. We offer a way for them to engage at a professional level without any conflict of interest, nor the need to undertake any installations.
This model currently accounts for 20% of our revenues and we believe should be expanded.
TERRITORY & FORMAT (BBBEE)
We currently only operate in Western Cape, our model can be rolled out nationwide. We recently embarked on a project to ensure a BBBEE L2 shareholder status, this by way of working with our existings staff and partners. The idea being to be in a position to offer to those firms and municipalities that will need a L2 BBBEE firm. This is currently on hold.
We have proven that our model is unique and scalable. Our target investor would be semi hands-on and bring a range of synergy benefits and skills to the table.
I enclose a drop box of various documents and brochures that will provide a prospective to understand the IP and value add components