Term paper On Vehicles on solar energy

Entrepreneurship Development

Submitted to: Prof. Vedavyas M G Department of MBA, PESIT

Submitted By: Rajneesh Thapa

USN: 1PT11MBA64 Section: C

Introduction

A solar vehicle is an electric vehicle powered completely or significantly by direct solar energy. Usually, photovoltaic (PV) cells contained in solar panels convert the sun's energy directly into electric energy. The term "solar vehicle" usually implies that solar energy is used to power all or part of a vehicle's propulsion. Solar power may be also used to provide power for communications or controls or other auxiliary functions. Solar vehicles are not sold as practical day-to-day transportation devices at present, but are primarily demonstration vehicles and engineering exercises, often sponsored by government agencies. However, indirectly solar-charged vehicles are widespread and solar boats are available commercially.

Solar cars
Solar cars depend on PV cells to convert sunlight into electricity to drive electric motors. Unlike solar thermal energy which converts solar energy to heat, PV cells directly convert sunlight into electricity. Solar cars combine technology typically used in the aerospace, bicycle, alternative energy and automotive industries. The design of a solar car is severely limited by the amount of energy input into the car. Solar cars are built for solar car races. Even the best solar cells can only collect limited power and energy over the area of a car's surface. This limits solar cars to a single seat, with no cargo capacity, and ultralight composite bodies to save weight. Solar cars lack the safety and convenience features of conventional vehicles. Solar cars are often fitted with gauges and/or wireless telemetry, to carefully monitor the car's energy consumption, solar energy capture and other parameters. Wireless telemetry is typically preferred as it frees the driver to concentrate on driving, which can be dangerous in such a small, lightweight car. The Solar Electric Vehicle system was designed and engineered as an easy to

install (2 to 3 hours) integrated accessory system with a custom molded low profile solar module, supplemental battery pack and a proven charge controlling system. As an alternative, a battery-powered electric vehicle may use a solar array to recharge; the array may be connected to the general electrical distribution grid.

Limitations
There are limits to using photovoltaic (PV) cells for vehicles:

Power density: Power from a solar array is limited by the size of the vehicle and area that can be exposed to sunlight. While energy can be accumulated in batteries to lower peak demand on the array and provide operation in sunless conditions, the battery adds weight and cost to the vehicle. The power limit can be mitigated by use of conventional electric cars supplied by solar (or other) power, recharging from the electrical grid.

Cost: While sunlight is free, the creation of PV cells to capture that sunlight is expensive. Costs for solar panels are steadily declining (22% cost reduction per doubling of production volume).

Design considerations: Even though sunlight has no lifespan, PV cells do. The lifetime of a solar module is approximately 30 years. Standard photovoltaics often come with a warranty of 90% (from nominal power) after 10 years and 80% after 25 years. Mobile applications are unlikely to require lifetimes as long as building integrated PV and solar parks. Current PV panels are mostly designed for stationary installations. However, to be successful in mobile applications, PV panels need to be designed to withstand vibrations. Also, solar panels, especially those incorporating glass have significant weight. To be useful, the energy harvested by a panel must exceed the added fuel consumption caused by the added weight.

The Financing
We are seeking to raise Rs 1,20,00,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9.5% fixed interest rate.

Mission Statement:
To use innovation in solar transportation technology to educate people regarding the feasibility and sustainability of solar energy generation.

Objectives:
The objectives includes: 1. Produce a working solar vehicle for customer use. 2. Be involved in solar energy dialogue with other solar teams and industry 3. To develop a sustainable business.

Keys to Success
Increase team membership and skill diversity with a goal of adding at least 6 new team members. Acquire necessary skills and experience with manufacturing processes involved in the production of a solar car

Organization and Management

Organization The Solar Car Team has based its organization upon the standard enterprise organizational model. Our organizational model consists of:

Project Leader The project leader is the single person who leads the team and coordinates operations. They manage the team as a whole and are responsible for informing the enterprise advisor about the progress of the group. They must ensure that all sub teams are staying on track and that the project is keeping to the schedule to make sure the team meets the deadline. Communication, organization, leadership, and dedication exemplify the necessary traits from the project leader. The project leader is also a member of a sub team and performs the various technical tasks associated with the sub team. Sub Team Leaders The sub team leaders for the three different sub teams, mechanical, electrical and business, are responsible for their progress of their respective sub teams. They manage their sub team members, as well as work on the sub teams projects with the team members. They must coordinate with other sub team leaders to make sure that designs are compatible across the different aspects of the solar car. They are also responsible for making sure their team has the necessary resources needed to complete their tasks. Sub team leaders report to the project leader about their progress and with any needs or concerns they may have. Team Members All returning team members will continue completing their tasks as defined by their sub team leaders. However, new team members will be responsible for updating the Michigan Tech Solar Teams business plan along with their other responsibilities. By updating the business plan each semester this ensures that the plan is up to date and reflects the current goals and strategies of the team. It also allows for the new members to become acquainted with the history and philosophy behind the Michigan Tech Solar Car team. This process will require the new members to become acquainted with all of the different aspects of team management and operation by interviewing the team leaders and project leader about the goals for the next semester. The hope is that with this project the new members will feel that they have some stake in the success of the team and it will give them the required background to operate successfully within the team.

Management Profiles While the Solar Car team is a new project, the management team is highly motivated to make the project a success. Due to their current educational status, they have the knowledge and skills necessary to propel the project to a solid start while obtaining the specific technical skills needed

to continue the projects progress. The management also has the interpersonal skills required to bring new team members up to speed on the project as well as share their skills. Rajneesh Project Leader Major. Rajneesh started the Solar Car team through a desire to have a solar power project on campus. His personal interest in renewable energy has made him entirely committed to the Solar Car Team and dedicated to its success. Through past leadership of engineering teams, he has developed the skills necessary to lead the team to achieve its goals. Mahesh Mechanical Sub Team Leader Major. Mahesh joined the Solar Car team out of an interest in renewable energy and the want to apply the skills and knowledge obtain in classes to real world problems. He has displayed hard work ethic by picking up the slack on previous engineering teams to ensure that the projects were completed to the necessary quality standards. His experience through work in the business industry brings an important skill set to the team. Johnson Team Member Major. Johnson has joined the team as a freshman and is excited about being on the team. His willingness to assist with all aspects of the project has been an important asset to the team due to its small number of members. As Johnson furthers his knowledge base through classes and experience on the team he will play an ever increasingly important role.

Description of Product
The Solar Car Team is working to develop a competitive solar car. The solar car is not simply a production vehicle with some sort of solar electric assist. It is a highly streamlined and efficient machine that is driven entirely through electric wheel mounted motors and charged only by solar cells affixed to the shell of the vehicle. Care is taken during the design and manufacturing process to ensure that the vehicle is as light in weight as possible and that rolling resistance is minimized. When in operation, the vehicle is assisted by complex math models to ensure the most efficient use of the power generated. To achieve all of this the Team is acquiring and will utilize expertise within the areas of solar cell technology and vehicle dynamics to deliver the optimal vehicle. Our current development stage is that of formation, continued research and preliminary modeling. Previously we completed an investigation into what it takes to compete in solar racing and what types of races were out there. We established a rough estimate for our budget and presented it to

our advisor to establish the feasibility of creating a solar car team at Michigan Tech. We were given approval to proceed with the project and have now completed a preliminary math model for power generation and vehicle dynamics along with the outer shell and solar cell placement model in UniGraphics NX5.

Feasibility Analysis

Market Analysis The purchasing of automobiles depends wholly on the market condition. More than seventy percent of the automobiles are purchased when the market conditions are good. Solar cars competitive advantage will be based on two factors, no fuel consumption, and an unrelenting desire for the highest quality product and service. 1. No fuel consumption. 2. Highest quality product and service. Solar cars sales strategy will be targeted at obtaining both the individual and corporate clients through word-of-mouth referrals. Customers will be able to place an order at the office, over the phone or via the website. Solar cars will be going after two distinct market segments, individuals and corporations. Both groups buy solar cars typically for different reasons. Individuals typically buy the cars as a vehicle for personal use. Corporations buy the car for short official work and also for gifting it to employees based on their performance annually. By going after both of these groups, sales will be less seasonal (relative to if only the individuals were targeted). Market Segmentation Solar car has two distinct groups of customers, individuals and corporate customers:

1. Individuals- The individuals are people who are looking to use the car for personal use or to give a friend, relative, colleague, etc., as a gesture of goodwill. These customers generally have a typically taste for the shape and design of the car. 2. Corporate- The corporate customer is typically buying the car for official purpose at work, or to present it to an employee either as a sign of appreciation at work or for a special event. The corporate market can be further broken down to banks, health care, employment gifts, real estate, apartments, special events/promotions, corporate headquarters, hotels/vacation resorts, and automobile dealerships. Like the individuals, they generally dont have a typical taste for the shape and design of the car.

Financial Analysis Solar cars start-up costs will include all the equipment needed for the office, manufacturing plant, legal fees, website creation, and start-up advertising. The manufacturing plant will be the largest chunk of the start-up expenses. This will include all the machines, manpower and technology to be used in manufacturing the product.

Business plan
Writing a business plan for a solar car business requires attention to detail, accurate research and a thorough understanding of the purpose of business plans. Settling important issues before you open, such as organization type and purpose, will help guide you through the obstacles and challenges that await a new business. Start your solar car business off on the right foot by planning early for an array of possibilities, outcomes and challenges. Step 1 Conduct extensive research. Focus on investigating automobiles industry trends. Identify potential niche and target markets, such as private clients and corporations. Investigate local and regional automobiles businesses. Take special note of the variety of their offerings, pricing and added services, such as delivery and payment options. Gather pricing information from retailers

of all automobiles brands in the market. Use the information you collect to help assemble your business plan. Step 2 Prepare a full description of your business. This section should contain information such as a company overview and mission statement. Summarize important aspects of your business by completing an executive summary. This should provide a well-rounded synopsis of products, services, financial goals and marketing efforts. Complete this after drafting the rest of the business plan if that works better for you. Step 3 Complete a market analysis section. Provide a detailed analysis of your marketing ideas and goals. Identify your target market and provide details on plans to reach out to the demographic contained within your target market. Include information pertaining to what makes your solar car business unique. Step 4 List management details. Include information on ownership and organization type, such as sole proprietorship and general partnership. Detail the qualifications and duties of all business owners. Step 5 Prepare a detailed financial analysis. Forecast sales to the best of your ability. This includes how many gift baskets you expect to sell at each price point. Prepare financial statements, including an income statement, cash flow statement and balance sheet. Seek help preparing financial statements from an accountant or visit the U.S. Small Business Administration for examples and additional help.

Step 6 Combine all the information to complete your business plan. Organize your business plan with the business overview, executive summary, marketing information and management overview at the beginning. Follow with a section detailing sales forecasts and provide financial statements. Attach any supporting documentation, such as business license and permit information.

Basic Startup Problems

(a)Size and structure of the market (b)Future demand pattern (c) Competitive position (d) Life cycle of the product (e) Availability of raw materials (f) Technical aspects of production (g) Availability of required labour

Exit Strategy
The Management has planned for three possible exit strategies. The first strategy would be to sell the Company to a larger entity at a significant premium. Since, the solar automobiles industries maintains a very low risk profile once the business is established; the Management feels that the Company could be sold for ten to fifteen times earnings. The second exit scenario would entail selling a portion of the Company via an initial public offering (or IPO).