SALES PLAYBOOK

Empowering the Nation

Last Updated: JBS 13-Mar-19

 PREFACE

This sales playbook is meant for understanding solutions provided by SolarNation as well as guiding
partners to go through sales conversation smoothly in the hope of closing deals. The science of selling
our products is relatively complex. First the audience have to understand what it is, how it benefits
them, what their alternatives are and most importantly why they should listen to you as well as why our
solutions are the best in the market. The art of selling our products on the other hand is pretty
straightforward, you can go in one of the two routes: Drive to care for the environment or for
commercial purposes (for saving or for backup) – or a combination of the two.

WHAT IS A SOLAR SYSTEM

SolarNation is an end-to-end solution provider for solar energy. Our solar panels convert the solar
energy (called ‘photon’) into DC electricity (direct current – like your AAA battery), our inverters convert
direct electricity into AC electricity (alternating current – like your electric socket at home) that can
power appliances. The energy can then be used (self-consumption), stored (in a battery) or sold (to PLN)

WHY BOTHER

Now you might be wondering, what’s wrong with the current way of getting electricity? I can just plug
my phone to my wall socket in my house and shazam – it’s charging. To answer that question, we need
to go through how electricity is generated using non-renewable energy (a.k.a. energy sources that will
run out in the very near future). There are 3 types of non-renewable energy sources: coal, oil & natural
gas – they all follow similar pattern:

1. Gathering: Raw materials are gathered from their native location

a. Coal: Bombing of mountains containing coal
b. Oil: Drilling of underground reservoir
c. Natural Gas: Explosive surveys and piping of gas (mostly methane - CH4) reservoir
2. Mobilization and Conversion:
a. Often times, refineries are located at quite a distance from the mining site, transporting
these bulky and environmentally dangerous (see Gulf Port Oil Spill) stuff is never easy.
b. Heat to Mechanical: Heat (burning) is used to extract the energy inside the raw material
(hint: even the process of burning requires energy) to move turbine(s), polluting the air,
the water and other medium during the process. There is also a significant energy loss
during the conversion.
c. Mechanical to Electrical: From the rotating turbines, electricity is generated, with more
energy loss during the process.
3. Step-Up: Transformers are used to step-up the electrical current to go into PLN’s grid
4. Transmission: The stepped-up current is transmitted for hundreds of kilometers to reach a
transformer nearest to your house, sometimes across islands, losing lots of energy for every
meter travelled.
5. Step-Down: Another transformer is used to step-down the current so you can charge your
phone.
This is a very long, complicated, inefficient and costly process to supply dirty and unsustainable energy.
For the record, fossil fuels got its name from the fact that it’s formed from dead fossils (mostly dinosaurs
– yes, dinosaurs) that got compressed over time, producing extractable energy. As far as we are
concerned, there is no more dying dinosaurs today and the remains of smaller organisms like plants,
animals (including humans) are a lot would never sustain our ever-increasing demand for electricity. In
fact, there are lots of articles mentioning Indonesia’s proven oil and coal reserves would last only until
2030 and 2033 respectively.

Indonesia even left OPEC: Oil Producing Exporting Countries (meaning we export oil) in 2009 because we
can’t even supply our own needs anymore, rejoined in 2015, left again in 2016 until today. This is not
only extremely embarrassing for our country, but it also puts is in a very risky situation. We import oil
for one of our main energy source, to power our houses, cars, manufacturing plants and every other
thing we use in daily basis from Saudi Arabia and other oil-importing countries that have been at war for
a very long time, fluctuating the trade price without notice - The dependency and hence political plays
for other fossil fuels are not any different.

Therefore, we look into renewables:

1. Wind: Doesn’t always blow and wind farms are very costly.
2. Geothermal: Great potential since we are located in the pacific ring of fire, but finding and
building the right plant is still a gamble with today’s technology.
3. Nuclear energy: Fusion is extremely dangerous; some might argue Nuclear is not considered as a
renewable energy (see Chernobyl incident).
4. Hydro: Mini-hydro and ocean waves possess a great potential since we are an archipelago
country with lots of water bodies.
5. Solar: Indonesia is located in the equator, directly perpendicular with the sun. The sun also
shines 24/7, it was there before the earth, and will continue to shine even after the earth is
destroyed. In fact, the sun is so powerful that if we collect all of the sunlight that is incident on
the earth for an hour, it can power the whole earth for a full year.

Notice that all of them are basically spinning turbines – wind, geothermal, hydro, even the fossil fuels
are just there to heat water into steam that can flow and spin a turbine – except solar. For solar energy,
it comes naturally from the ultimate source of energy, does not have any moving component hence is a
lot safer and would require very minimal maintanance.
 SOLAR SYSTEM

Solar panels have been around since mid-19th century, like every new innovation, it had no commercial
use, extremely low efficiency and absurdly high price tag. Over the years, commercialization and
globalization have contributed to the rise of its adaptation and acceptance in the mass market. Thanks
to China’s mass production of solar panels, their capacity and price tag reached their optimal economies
of scale in 2017. If you look at the graph of solar panel price, the price has dropped from $100 / Wp in
1950 to $0.3 / Wp in 2018, that’s 300x cheaper – the graph is plateauing however, hence it is unlikely to
go down any further in the foreseeable future. There are obviously other components of solar system,
you’ve got the inverters, the batteries, the cables and such.

Unlike the panels (also called PV: Photovoltaic), the development of batteries has not progressed as fast
– it is the culprit of the system, until mid-2015. In mid-2015, the Indonesian government declared a bill
for a two-way electricity meter called EXIM Meter (export-import). Other countries have long adapted
this solution but we’ve got ours only 2 years ago. This enables for an on-grid connectivity, instead of
having a battery.

Solar
Panel

Solahart

Apple’s headquarter in Cupertino, Use battery instead

California powered 100% by If Off-Grid
renewables
 ON-GRID

The commercial purpose of On-Grid solution is for financial saving. Unlike the conventional Off-Grid
system, On-Grid system does not have a battery. Now you might be asking since electricity from solar
energy is generated only during the day, there needs to be a way to store the energy to be used at night,
how is possible to install a system without the battery? Simple answer: We don’t. Batteries cost a lot,
sometimes even exceeding the price of the solar panel itself, doubling or tripling the total price – their
lifetime (performance warranty: 5 years) is one-fifth of that of solar panels (performance warranty: 25
years for 80% - meaning the maximum annual linear degradation is 0.25%).

In an On-Grid system, electricity produced would be consumed during the day, usually covering most of
the consumption. If the production exceeds the consumption, the excess electricity would be sold to
PLN at the same rate as what PLN charges us. For most houses and offices, it’s IDR 1467.28 / kWh, for
most commercial areas it’s IDR 1035.78 / kWh. Mathematically, for the same amount of energy
produced, houses and offices are benefited more from solar energy.

During the night, we would still draw electricity from PLN, hence the meter would go back during the
day and forth during the night, every single day - and we only pay PLN the offset amount at the end of
the month. Therefore, the three main components in an On-Grid system are: Solar Panel, Inverter and
the EXIM Utility Meter (PLN installs this for us).

Now, PLN does not give the 2-way utility meter to all solar systems installation, only those installed by
pre-certified installers with required licenses (SBUJK EBT, SIUJPTL, etc.) – they don’t want interference to
their grid if there is any discrepancy in the frequency and such. SolarNation – Sedayu is one of the very
few EPC with all required licenses. There is one down side of using On-Grid system compared to Off-Grid
system. Since during the night, we are still drawing electricity from PLN, it doesn’t help with blackouts –
unlike Off-Grid system which has battery.
 OFF GRID

An off-grid system means that the system is off the PLN’s grid – meaning it has to be able to sustain
itself. This is simply achieved by having an ESS (Energy Storage System – a fancy name for Battery). To
simply put it, electricity generated during the day would be used and the rest stored in the battery, to be
used at night.

Since battery is the culprit of the system (costs more than even the solar panels and has a warranty of
only 5 years instead of 25 like the solar panels), we almost always recommend our clients to go On-Grid
instead, unless there are backup needs – mostly power-hungry clients with backup power needs such as
data centers and cold storages (those that would lose billions if their power gets cut off for even few
seconds).

Unlike On-Grid, there is no direct saving calculation from PLN bill because there was no PLN bill to begin
in the first place. The primary purpose of an Off-Grid system is for backup. Then how do I calculate if my
investment is worth it or not, one may ask. To calculate the worthiness of the project, we must see what
the alternative is – Genset systems? Wind farms? All of those that cost way more money and
introducing uncertainties along the way. (oil price fluctuates, wind doesn’t always blow, etc.) In short, if
it sounds anything like a Diesel Replacement Program, we are 100% confident we can offer a much
economical and environmentally-friendly solution.
 PROBLEMS

So what problem are we solving in the first place? We can see that:

1. Indonesia’s electricity trend escalates significantly over the years – realize it or not, it increases
by 5x from 2000 to 2019, and is going to double in 10 years if we don’t do anything. It all goes
back to supply and demand – energy demand is never going to go down, as our population
grow, so does our individual needs, while the supply of fossil fuel is limited.

2. Unreliable transmission is also another issue: Indonesia is an archipelago and centralized power
plants isn’t ideal since transmission would be inefficient, added with the concerning quality of
transmission lines equals uneven and unreliable distribution of power.

3. A huge part of Indonesia, especially on the eastern side (Sulawesi, Papua & surroundings) have
never experienced electricity, hence lowering their quality of life (education), health (vaccines
and hospitals) and general economy (power lines) below the nation’s average. A major issue for
electricity is the logistics of going delivering barrels of oils to be used as Gensets are very
expensive and hazardous.
 4. When it comes to pollution, Indonesia has established quite the reputation over the years.
Having the most polluted city in South East Asia, the most polluted river in the whole world
(Citarum) and many more. A major source of carbon pollution is the non-renewable power
plants – so severe that even the Indonesian government enforced cap and trade funds for
power plants across the nation. (funds that essentially is held by the government and are only
distributed when they contribute positively to the carbon trading mechanism)

Having said those, with solar energy you could care less about PLN’s tariff fluctuation, you would not bat
an eye to the transmission lines since the solar panels are sitting tight on your roofs, the raw material is
the free sun light incident on the earth every second while contributing positively to the environment.

CURRENT SITUATION

We are fighting an uphill battle against the incumbents in fossil fuels. Indonesia is one of the very few
countries with monopolizing state-owned utility company (PLN), not only it forces the electricity price to
go up, but there is minimal push in policies and price adjustments – yet PLN’s financial statements are
still red in color. Where other countries incentivize their citizens both financially and non-financially to
transition into renewable energy, Indonesia subsidizes fossil fuel especially oil – the reason is both
political and power play by the incumbents in the fossil fuel industry. We see sudden policy changes in
Indonesia, reasoning behind, why some policies fail and succeed over the years and we see that the
rationales behind does not always make sense and are sometimes driven by people’s hidden agenda.
Hence we can say that we have no financial support and very little non-financial support at this point.

Some institutions however, like Green Building Council, Ministry of Environment in Japan have published
carbon trading schemes that SolarNation is aiming to utilize. These funds usually can be used via
financiers in the form of credit for contributing to each project.

Electricity tariff in Indonesia is compartmentalized into 4 categories:

R – Residential: Landed houses or equivalent (IDR 1,467.28/kWh)

B – Business: Commercial buildings, office buildings, workshops or equivalent (IDR 1,467.28/kWh)
I – Industrial: Factories, data centers, warehouses or equivalent (IDR 1,035.78/kWh)
S – Special Uses: (IDR 900/kWh)
 PLN TARIFF

PLN tariff varies by category (golongan), while the numbers following usually shows the size of the
consumption in ascending order. As per the day this document is written:

1. R1, R2, R3 (residential areas like houses and apartments): IDR 1467.28/kWh
2. B2 (smaller commercial buildings like office buildings): IDR 1467.28/kWh
3. B-3 (bigger commercial business like office towers): IDR 1035.78/kWh
4. I-3 (middle-sized industrial areas): IDR 1035.78/kWh
5. I-4 (huge industrial areas): IDR 996.74.78/kWh
6. Special-use buildings like schools, foundations (so-called yayasan): IDR 900/kWh

For B-3, I-3 & I-4, the rates during the day and during the night varies. The rate during the morning
(22.00-17.00 next day) is called LWBP (luar waktu beban puncak) and during the evening (17.00 – 22.00)
is called WBP (waktu beban puncak) – the rationale behind is essentially PLN’s supply demand curve.
(there’s more demand during WBP). The rates mentioned above is LWBP rate, to get WBP rate, we
multiply LWBP with “K-factor”, ranging from 1.4 to 2.0, depending on “kebijakan” PLN for each client.

a. Consumption during LWBP: 1,000 kWh

b. Consumption during WBP: 2,000 kWh
c. LWBP rate: IDR 1035.78/kWh
d. K-factor: 1.5

e. WBP rate: IDR 1553.67/kWh

f. LWBP bill: a*c = IDR 1,467,280
g. WBP bill: b*e = IDR 3,107,340
h. Total bill in that month: f+g = IDR 4,574,620

These rates are the same throughout the country.

Unless there’s special needs, for areas with PLN already in-place we almost always propose on-grid
systems. Since on-grid systems are either self-consumed or sold to PLN during the day (LWBP period),
two systems with the same capacity, one installed on a house and another one installed on a
manufacturing plant can generate very different total saving.

There are few also IPPs (Independent Power Producer) in some industrial areas in Indonesia. These IPPs
are essentially localized PLN that PLN signed contracts with few years back (now it’s a lot harder) in the
sense that these IPPs can cover certain industrial areas. The rates are always higher than PLN (usually
with LWBP of around IDR 1,6000 to IDR 2,000) but with penalty agreements (if the power is down for
more than the agreed allowed down time, then these IPPs must pay their customers for the implied
cost). One famous example is PT. Jababeka Tbk (a public company owning CIkarang Listrindo, an IPP
company covering Cikarang industrial areas). There has been some resistance from IPPs for solar system
installations on their clients’ sites as they see them as opportunities lost – but there are workarounds
and proven come–to–an–agreement results.
 WHO WE ARE

One of the most frequent questions we get is the difference between SolarNation and Selaras Daya
Utama (Sedayu). Sedayu is our sister company and no, we are not affiliated with Agung Sedayu.
SolarNation and Sedayu shares the same office, have the same shareholders and consist of the same
team. The only two difference is that Sedayu caters the governmental sector while SolarNation caters
the private (commercial and residential sector) and that Sedayu is an EPC (Engineering, Procurement
and Construction) company while SolarNation is a project developer. To put short, Sedayu is
SolarNation’s big brother. All the licences, the sophiscated engineering capability is on Sedayu and the
marketing side is handled by SolarNation.

It has always been our vision to accelerate Indonesia’s transition to renewable energy. There is no doubt
that the transition will happen sooner or later, we are here to act as one of the pioneer to accelerate
that transition, giving positive impacts to the world around us. SolarNation – Sedayu is a relatively small
family consisting of high caliber individuals able to work under very minimal supervision. Our partners,
while not directly under SolarNation is also an integral part of the equation and we count on them a lot
for bringing in and following up on prospective leads.
 OUR SERVICES

Together with Sedayu, we take care of everything from A-Z when it comes to solar energy inquiry. For
the record, we do not manufacture the products, we import them. For every project:

1. We do both satellite and real-life site visit and documentation (using our drones for rooftop
installations). We use the most updated NASA satellite imaging software to determine the
capacity of the rooftop, solar irradiation in that area, shading from nearby buildings and even
the wind load for tall buildings. We also use drones to identify potential shading from
compressors, water tanks and so on.

2. We produce not only engineering drawing for electrical interconnection (ex. SLD: Single Line
Diagram) but also mechanical drawing (structure load, clamping mechanism, etc.), 3D modeling
(will-look-like rendering) as well as financial studies (total cost, total saving, payback period, IRR,
ROI, etc.)

3. Our logistics and procurement team would also take care of all the custom clearance (we have
our own API), transportation (by land, sea and air), warehousing if there needs to be temporary
storage, contract manpower and everything else in between.

4. Most installation usually take no more than 1 week, we take special care on making sure there is
zero damage to the site, no chance of water leakage anywhere and on all electrical
interconnection to the main panel.
 5. Our performance warranty lasts for 25 years. We would give a free monitoring system for all our
clients after the installation, displaying live tracking of energy produced as well as the positive
environmental impacts generated by the solar system. Our team would also monitor the
performance remotely and be alerted if there is no anomaly, unless the client changes the
password on the monitoring system for privacy reasons.

There is one missing piece in the equation, it’s the sales part. For that reason, we need you, our solar
ambassadors to be a part of the movement, to use this document as a guide for sparking interest and to
help bring in prospective and cooperative leads.

Survey Study Logistics Installation Monitoring

 PITCHING

In this section, we would like to give storytelling pointers to our company profile. We first begin with
why we are here in the first place by introducing the industry condition, then about who we are and
what our services are, then to our past projects and then to the financial solutions. A good salesman
would be able to evolve this storytelling technique to engage and relate users into the story. We have
seen pitches that lasted for 5 minutes and those that lasted for an hour using the same company profile,
depending on how engaged the audiences are.

The opening slides in our company profile talks about our vision, the problem with the current system
and how we would like to fix it

 SolarNation is “our” solar energy company, we are not a corporate entity that puts profit before
the people. Our vision has always been to “accelerate” Indonesia’s transition into renewable
energy. The transition will happen, no matter what. Our job is to make that it is not too late.
 The current method of getting electricity is problematic, both for the country and for
consumers. There is a huge demand gap between supply and demand of electricity. The demand
will always increase and the rate of electricity production from fossil fuels cannot cope, at the
expense of the environmental damages it causes. Hence, we look for alternative source of
energy: a cheaper, ever-lasting and environmentally-friendly one, solar. Indonesia’s proven oil
and coal sources are said to will only last for the next few years. We even left OPEC, twice, as
our domestic supply of oil can no longer sustain the demand. The government is proven to fail
to overcome the bureaucracies and personal agendas to encourage the use of renewables. We
subsidize oil, not renewables. This system is doomed to fail and early detectors and early
movers would be at an outmost advantage.
 We have two brands to go in: SolarNation & Sedayu (Selaras Daya Utama). We are basically one
and the same, it’s just that the brand name Sedayu gives a connotation that we are somewhat
affiliated with Agung Sedayu Group, which is not true – hence the two brands. We started off
this journey with Sedayu, taking 99% government project and soon realized that we cannot rely
only on APBN (Anggaran Pendapatan dan Belanja Negara), thus SolarNation was born to cater
the private and residential markets. It didn’t take long that we realized that we need to fine tune
SolarNation. We started providing our financing services, marketing networks and so on while
Sedayu strengthens what it does best as a solar EPC (Engineering, Procurement and
Construction) company. We hold authorized distributor and installer licenses for all solar panels,
inverters and batteries that we use, including those from Europe (Germany, Switzerland, Spain,
etc), Japan, United States and so on:

SOLAR PANEL INVERTER BATTERY

 We started off in 2006 and up until 2018, we have installed a total of 261 projects with 100%
success rate, meaning our very first installation is still working perfectly and is still under our live
monitoring until today. This is our core value, to deliver working solutions that last for really
long time without compromise.
 Our two solutions work for all kind of demand. On-grid System would reduce your electrical bill
significantly, but would not function as a backup power since there is no battery while Off-Grid
System would act as a backup power source, but the financial saving would be calculated
indirectly from alternative sources of energy (usualy gensets) as comparison. (we would be at
least 2x as efficient as diesel gensets financially)
 We take care of everything, no hidden fee, no hassle, no gimmicks, the prices that we quote
(last for 30 days) are always equals the total cost of ownership. Clients simply sit down, relax
and enjoy the savings. For an average household, the survey would take a day or two, studies
would take two days at max, logistics would take two weeks, installation would take less than a
week and the system should be up in less than a month. For unique and large systems like huge
warehouses, solar carports and so on would definitely take longer time.
 Portfolio:
o 50 kWp PLN Tahuna: We didn’t have a drone back then, but there are solar panels on
the other side of the roof as well as on the flat roof area. Pre-installation, PLN Tahuna
(Sulawesi Utara) relies on diesel gensets for their power supply. The PLN house on the
picture had 4 hours of electricity per day and was not able to supply power to the whole
community. The logistic cost for the diesel is higher than the cost of diesel itself. Post-
installation, our On-Grid system were able to power the house for 24 hours and supply
electricity to the rest of the area.
o 94.5 kWp on Pertamina Balikpapan: Highest installation in Southeast Asia (26th floor).
The area was very close to the sea, making the wind load very strong. We were extra
careful on moving components and the solar system is still standing strong until today.
o 189 kWp on Pertamina Cilacap: Twice as big as the past installation from the same
client. We actually finished first before the main contractor – the buildings are finished
by now.
o 30 kWp on Kemenkumham office: One of our iconic installations in the government
ministries of Indonesia.
o 90 kWp on Bank Indonesia: Also one of our iconic installations – it was really difficult to
get the picture as the area is on “Ring 1”, requiring very high clearance to fly anything
above it. This also reflects how even Bank Indonesia is comfortable using solar panels on
their roofs, confident that there would be no leaks or other disturbances whatsoever.
o 21 kWp on ASSA Rent Pondok Pinang: A canopy-style On-Grid system for ASSA Rent, a
public company (TBK) affiliated with Triputra Group. The installation took a week and
they were able to save more than 60% of their monthly electrical bill. The employees
were also able to have lunch and hang out on the roof area.
o 21 kWp on SMA Pradita: One of our installations in Aceh, flat-roof mounted system for a
school with great science programs that encourages their students to learn about how
renewables work, while saving money for the school.
 o 10 kWp on a house in Menteng: One of our residential installations in Jl. Jambu in
Menteng where we were able to only cover 12% of the monthly electrical bill due to
limitation in available roof area we were allowed to install on.
o 7.5 kWp on a house in Bogor: Where the solar system again acts as a canopy for children
to play under.
o 30 kWP on a village in RajaAmpat: One of our Off-Grid projects in Papua, powering small
village communities that didn’t have access to electricity pre-installation.
o 10 kWp on a village in Daboto: An even further installation in Papua where we powered
a school and a small clinic for the people of Papua. Without electricity, aids from WHO
(World Health Organization) and other movements were pretty much useless (they
cannot use their centrifuge machine, medical scanners and other electrical appliances).
To reach this site, we used a charter plane where we flew back and forth for 40 times,
with the round trip carrying empty cargo, since all other means of transportation didn’t
have enough infrastructure to support our hardware.
o 75 kWp on Bumi Ratu: Our first installation in Lampung where apparently there is still
lots of blind spots that PLN was not able to cover. We would see more installations in
Lampung later this year.
 And of course there are many more installations that we have built over the years, the biggest
one so far at 475 kWp in Sulawesi Selatan.
 We have won few awards (some for us, some for our clients: green energy certificates, reduced
carbon footprint certificates, etc.), licensed both locally (SBUJK EBT: Surat Badan Usaha Jasa
Konstruksi Energi Baru Terbaharukan & SIUJPTL: Surat Ijin Usaha Jasa Pembangkit Tenaga Listrik)
and internationally (ISO & OHSAS) that we renew as often as possible. We also have our own API
(Export-import permit) that enables a more competitive price than our competitors.
 We send our engineering team periodically for trainings both inside and outside of the country
to ensure constant updates on recent technologies, regulation changes and installation
techniques.
 Looking back, we have established footprints from Sabang until Merauke. Together with our
partners, we would like to make the pins on the maps denser faster.
 With that number, we have contributed in saving at least 38,000 tons of CO2 that would
otherwise be produced by burning fossil fuels for the same amount of electricity produced. This
is a really huge number, but it’s very far from enough.
 We do have “financing” options where we basically give the system for “free”, where the
payments would be made via saving. Essentially, if you consume 1000 kWh per month and PLN’s
tariff is IDR 1000 / kWh, we offer an On-Grid system that supplies 700 kWh per month (so you
only have to pay 300 kWh to PLN) at IDR 900 / kWh (saving only IDR 100 / kWh for the 700 kWh
produced) over the next few years (as stated in our contract). Our CASH program on the other
hand is much straightforward and is much long-term oriented, where there is an upfront
investment but the whole saving (saving IDR 1000 / kWh for the 700 kWh produced) would be
for the client.
 You can close nicely by going into detail on potential sites that we can explore together.
 ENGINEERING WORKFLOW

The first goal for partners is always to spark interest in potential client. The second goal is to land site
survey, along with our engineers. The third and final goal is definitely to close the deal. Hence to bridge
the second to the third goal, the two main job description to our engineers’ post- site survey work are:

1. Layout for solar panel, inverters, interconnection, even to support materials and railings

(this includes possibilities for floating system, bifacial panels, east-west design and other design aspect)

2. Bill of Quantity for each component

 SPECIAL CASES

Instances to watch for:

1. Roof condition matters: Wooden or cracked roof support makes it dangerous and might cause
leakage in the future, we need to hook our railings to strong supports. Corroded zinc-alum roofs
is one thing to be careful about. First, the solar panels and the railings would make it harder to
change each zinc-alum segments. Second, we would like to avoid disputes on who causes what.
We would make it clear upfront that replacements and patching of roofs and all the
complexities that comes with it, though we would be happy to help, would be at the owner’s
expense.

2. Complicated roofs with small available areas on each segment: Inverters are the brain of the
system and they have limited number of input that can go to each “hole” (called MPPT,
Maximum Power Point Tracking). When we combine two groups of power source (from the
solar panels) with huge difference in capacity, it will take the lowest one – making the system
inefficient. There is nothing complex with putting two inverters engineering-wise, but having
more inverters would make the system more expensive and hence lengthening the payback
period.

3. Steep roofs would not yield much production: Indonesia is one of the very few countries the
equator passes through and most of the islands are located slightly southern of it. Hence, the
most ideal solar panel orientation is 5-10° facing the North. There is no relation to the East or
the West side, since the sun would pass through the whole stretch anyway, giving the bell curve
in previous diagram. Steep roof installations yield less energy production in various ways, the
sun wouldn’t be 90° incident onto the solar panels and there are more possibilities of
obstructions (like trees, poles, etc.)
4. Shading: Energy produced would be affected by shading from nearby tall buildings and trees. As
direct sunlight is blocked, the energy produced would be reduced. The system would still work;
it just wouldn’t be as efficient.

5. Bi-ficial / Black Photovoltaics: We’ve had aesthetical inquiries over the years that touches on
possibilities of see-through solar panels as well as black-colored solar panels. We do provide
those, but for the same amount of capacity, see-through solar panels (called “bifacial”) are
generally 40-50% more expensive and black-colored ones are usually 10-15% more expensive.
These special inquiries are always just a matter of preference and aesthetics. There are also
sometimes inquiries about solar roof (so instead of having solar panels, you just replace your
roof tiles with solar roof tiles. Though this is commercially ready in the United States, the cost of
ownership of these tiles are still very far from the generally accepted price, sometimes
exceeding 3x of the price of normal solar systems with the same capacity.

6. Special-uses: We have installed solar systems with dual functions: solar car ports, floating solar
systems and many more. One common question is the price tag associated with it. There is no
direct answer to how much it would cost, there are infinite number of metrics we need to take
into account for. One thing for sure, the add-ons would be proposed as a separate contract from
the actual solar system. Two reason: One, since those non-solar components are auxiliaries, we
do not want them messing with the financial feasibilities of the solar system. Two, we would like
to show that we are very open for multiple vendor selection for those components. We do not
manufacture the carports canopy, the floating pontoons and other mounting-related materials.
We have partner companies that do that for us and we would be happy to explore alternatives if
such opportunities exist.
 CASH PRICING SCHEME

These packages are simply guidelines for CASH payments. The conditions are, but not limited to:

1. Common On-grid system

2. Jabodetabek area
3. Residential tariff (IDR 14670.28/kWh)

Here’s how to read it:

1. With 300 m2 free space, we can install 50 kWp of solar system that would cost IDR 775 mn. The
solar system would produce 90 MWh of power per year. Multiply that with PLN’s tariff, you get
a saving of IDR 130 mn for the first year. With an average PLN annual tariff increase of 7.5%, the
total saving would be IDR 9.5 bn over 25 years (since the warranty is good for 25 years). The
payback period for such system would be 5.5 years.
2. If say a client’s monthly electrical bill is IDR 30 mn (IDR 360 mn annually) and demands to go
70% solar, then he would need a solar system that produces around IDR 260 mn Year-1 Saving,
which would be the third package. He would need 600 m2 of space where we can put around
100 kWp (100/0.35=285 solar panels) of solar system that would cost IDR 1.3 bn that would give
the client a payback period of 5.5 years.
3. An investor requiring, of payback period of 4 years would require a 1 MWp (1000 kWp) system
that would require 6000 of free space, costing aropund IDR 10.5 bn that would produce 1.8
GWh of electricity and a saving of IDR 2.6 bn on the first year and IDR 190 bn in 25 years.

For Off-Grid systems, we would need to know some more information. One important metric is
Autonomous Days (how many days without power should the off-grid system accommodate, is it 1 night
only? 1 day? 3 days?) – this is specs are estimated case-by-case and so does the price.

For non-Jabodetabek area, here’s the rate price multiplier:

+8% for major cities in Java island +16% for major cities in Sulawesi
+11% for major cities in Sumatra island +21% for major cities in Papua
+14% for major cities in Kalimantan Additional +4% for non-cities
 CASH INVESTMENT CALCULATION

Customers with CASH payment is always preferred. Not only the payments from the client to
SolarNation is most straightforward, there is also no approval step needed. For SAVING payments, we
would need to do extensive engineering studies of the load profile (electricity usage trends whether
electricity usage is constant during the weekends and during the days, hours during the day when the
usage is at peak and so on, so of which requires us to install a power meter for a whole week on their
PLN meter) and financial studies (If the clients are okay with down payments, expected IRR, contract
duration and so on).

In theory, we can cover 100% of any client’s electrical bill. In real-world situation, there is always a
limitation space of roof/ground/waterbodies area, minus those shaded. Another common reason is the
main PLN capacity panel; remember we talked about how On-Grid solar system does not go to each
electrical appliance directly, instead it goes to the main panel (the one installed by PLN), essentialy
giving the clients two power sources, one from PLN and another one from solar energy.

The first main input metric is the size of the area, we can guestimate everything else from there.
Another metric that we need to know is the monthly electrical bill for On-Grid systems and autonomous
days for Off-Grid systems. For On-Grid system, your maximum saving is 100%, if you’re producing 150%
of what you consume, PLN is not going to “pay” you for the remaining 50%, hence it’s important to
understand the average load. Ideally we usually ask for the last 3 months’ bill, but 1 would suffice.

Here’s a rough sample calculation:

Free roof area: 300 m2

Panel size: 2 m2
Hence we can install: 135 panels
Note: we always spare ± 10% for walking paths

Each panel has a capacity of: 350 Wp

Giving a total capacity of 47,250 Wp (47.25 kWp)
Average peak sun hour in that area is 4.88 hours
Giving monthly production of 47.25*4.88*30 = 6,917 kWh
Assuming a PLN tariff of IDR 1,467.28/kWh
The monthly saving would be IDR 10,149,762

With an investment cost of IDR 945,000,000

And assuming a conservative PLN inflation rate of 7.8%
That investment would hit breakeven point of about 6 years

With a performance warranty of 25 years, that’s 18 years of guaranteed free energy.

 SAVING SCHEME CALCULATION

Investment cost has always been the number one barrier to purchase. A good partner should be able to
utilize different pain points, find tailored solutions and convince leads using various sales principles.

To enable partners to do that, we have a SAVING program where instead of selling solar systems, we sell
them electricity. Currently, SolarNation does this with financing partners as we do not have the financial
capability to do this by ourselves. This means that the owner of the system would be the financier – not
only there’s a chance of disapproval, the process would be much longer and sometimes even requiring
due diligences and scrutinizing term sheets.

From the customer’s point of view, here’s what it looks like:

In short, the Saving payment on the left side compensates the Upfront payment on the right side. The
upfront payment usually has a PBP of at around one-quarter of the warranty (4-6 years of out 25 years,
hence the height of the yellow vertical line. Essentially, around 90% of the saving is used to pay for the
solar system. From the customer’s perspective, they’ve got nothing to lose (the system and all
maintenance is free), they start saving from day one and they can decide to buy the system from us few
years after (yes, they can decide to buy it too later) – look at it as a free trial. Unfortunately, the
numbers vary a lot case by case so we cannot give a ballpark figure for that.

To further simplify the process, clients’ 100 kWh of monthly consumption that costed them IDR 1.4 mn
(IDR 1,400 /kWh) now is reduced to 20 kWh (IDR 300k) that they still need to pay PLN but they now have
to pay us (the financier) IDR 900k for the other 80 kWh that they use, saving them IDR 200k per month
at no fee at all.

Sometimes this can be used as a comparison that lead clients’ to pick the CASH options. When faced
with “do you want to save IDR 300k or 10x of that? Would you rather buy a car (ex. Toyota Innova) that
is consumptive in nature (gas, maintenance, etc.) or invest it in solar energy for the same amount of
money?” kind of mindset, clients tend to consider the CASH option more.
 CLIENTS AND PARTNERS

In SolarNation, we almost always land our clients via partners. We believe that word of mouth and
reviews are the best means of marketing. For that, it is our outmost important to empower our partners
in whatever ways we can. We have had systems installed in village areas, banks, coal power plants,
office towers, landed houses, even solar road lamps. The two systems (On-Grid & Off-Grid) serve
different purpose and by now you should be able to distinguish which one serves as direct saving and
which one serves as power backup. In short, we cater to all market – as long as the area is sufficient, and
the power consumption is enough.

It is always good to open a small door to many big groups instead of a big door into one group. What
this means is that in the long run, it’s easier to go into the group once we have landed one foot at the
door. When we have installed a system in a landed house, neighbors will see. When we have installed a
system in a factory in an industrial estate, their surroundings will ask around. When we have installed a
system in a conglomerate group, the sister companies will most likely notice. The house owners, the
factory manager, the directors in these companies essentially becomes your extension.

OUR IMPACTS

Since the day we started, we have installed more than 250 solar projects with 100% success rate.
(meaning our very first installation is still up and running well until today, since we can monitor it
remotely as discussed in the previous topic) As per today, our solar systems have generated more than
50 GWh of electricity, that’s an equivalent of 35,000 tons of CO2 reduced, more equivalent calculation
can be found in our company profile. Beside our environmental impacts, we also have several CSR
(Corporate Social Responsibility) projects that we installed in remote islands in Indonesia for educational
and medical reasons.

CLOSING

We hope this document really helps you understand about us: Why we do what we do, how we do it,
what we have achieved so far and what we need to achieve with you. This document has been through
lots of iteration from our internal team but we are 100% sure there are still lots of things to be
improved, we encourage you to give us feedback on that. We hope you re-read this document every
now and then to help remember key takeaways. Please do not lose your commission plan agreement as
that is essential for the commission sharing scheme. Please use your SolarNation name card when
meeting potential candidates and feel free to drop off our company profile, brochures and other
marketing materials wherever and whenever you can. Finally, we hope that you would be as
comfortable as us in saying that you are a part of SolarNation’s family.
 FAQ

Is there any subsidy from the government?

No there isn’t – the government of Indonesia subsidizes non-renewables instead. We don’t see this
changing anytime soon unless there’s major political change. As of now, we are on our own.

Will cloudy days affect my solar system production?

Yes, it will, though not significantly. The numbers we provide are taken from NASA satellite over years of
data analytics, taking into account all environmental factors over the years to give you the most
accurate projection for the years to come.

Aren’t solar panels the water heater thingy on my roof?

Solar panels are not water heaters. For water heaters (like Solahart), it converts the heat from the sun to
be used as water heaters, if there is no heat, then it wouldn’t work. Solar panels on the other hand
converts solar energy into electricity to be used by your electrical appliances at home. Whether it’s
snowing, raining or just plain cold, solar panels will continue to work as long as the sun is still shining.
The only time it won’t work is during solar eclipse, when the sun is blocked by the moon, then it won’t
work for those 5-10 minutes.

I already have gensets as a backup power, why do I need solar systems?

Gensets requires lots of maintenance, which is costly. The raw material to fuel your gensets is also
expensive and will increase over time, for some people, the capital investment for the gensest is one
reason they wouldn’t switch as second-hand gensets almost have no value. If your site is on a remote
area, logistics could also be a problem (transporting oil to remote areas are costly, timely, dangerous
and is not environmentally friendly). Off-grid solar systems however is a lot cheaper (for diesel
replacement, we are 1000% sure solar systems are more economically viable), depreciates only 0.25%
max per year (warranty), requires 1-time logistics, self-cleaning and requires minimal maintenance.

Can I go 100% solar?

Of course! It does depend on the available space, your existing panel capacity (if you have one) and
other factors, but given the circumstance allows, it is absolutely possible and recommended. For
registered buildings however, you still have to pay the minimum payment “abodemen” (around IDR
50,000/mo) to PLN – you have to pay this fee whether you have solar panels or not, or if anyone’s at
home or not.
Can it run on parallel with PLN?

Yes, our on-grid solar systems run on parallel with PLN. The electricity from the solar systems do not got
to your specific electrical appliances directly, instead it goes to the main electrical panel in front of your
house. Electricity from the solar systems are going to be the first priorities that your main panel would
use, if the electricity supplied is not enough (like during the night), then it would draw electricity on
parallel – hence there is no delay for failover systems like in gensets.

Will PLN be okay with this?

PLN is one of our biggest clients and they a big fan of solar energy. We need to help increase our
electrification ratio alongside with PLN by reducing energy consumption and increasing energy
production as it is currently impossible for PLN to do everything themselves. Additionally, our solar
inverters adjust the output phase with the grid (IEC 62891), so not to worry about it.

What about maintenance and monitoring?

Unlike other sources of energy, solar systems don’t have any moving parts – therefore maintenance is
very minimal (eg. cleaning with water sprinkler). We still do a daily monitoring with 24/7 alerts and
annual visits to all our past installations though. We essentially use the same login monitoring as the one
we give you (app-based), both parties can monitor the electricity produced at real time unless one of
the parties change the password (which is the case with some of our data-sensitive clients).

Where is SolarNation’s office?

Our office is at Jl. Iskandar Muda 12D, Jakarta Selatan. We are always open for visitors and we have a
mini showroom on our 2nd floor. We also have a running solar system on our rooftop for clients and
partners to take a look.