BUSINESS PLAN FOR SOLAR SYSTEM

A Project of
Entrepreneurship

:Submitted to
Dr. Muhammad Nadeem

:Submitted By
Muhammad Abdullah Qamer BBA-F19-A-20
Muhammad Nouman Riaz BBA-F19-A-32
Israr Ahmad BBA-F19-M-35

Session 2019-22
Bachelor of Business Administration

Department of Commerce
Punjab University Jhelum Campus
 Table of contents

Business Name and Mission Statement

Executive Summary
Problem
 Energy profile of Pakistan
 Energy policies
 Electricity consumption Table

Entrepreneurial Solution
 Solar energy; The king of future and Pakistan’s potential

Opportunities
 Need to explore solar energy
 Economic benefits
 Improvement in quality of life
 Better climate quality
 Measure to promote solar energy
 Importance of technology and quality

Governmental support to encourage Solar Energy

 Solar energy policy august 2022

Feasibility Analysis of SUN POWER

Concept statement

Product/service Feasibility
 Concept Testing
 Usability Testing

Industry/Market Feasibility
 Industry attractiveness
 Market timeliness consideration
 Identification of niche market
 Organization Feasibility
 Management prowess
 Resources sufficiency

Financial Feasibility
 Capital requirements
 Financial Rate of Return

Business Model of SUN POWER

 Business Model Canves

Business Plan of SUN POWER

 Section 1: Executive summary
 Section 2: Company Description
 Section 3: Industry Analysis
 Section 4: Market Analysis and Marketing plan
 Section 5: Management Team and Company Structure
 Section 6: Operation Plan
 Section 7: Product/Service Design and Development plan
 Section 8: Financial Projections

What are the challenges?

Conclusion
 SUN POWER
.WE BRING THE SUN TO EARTH

Mission statement: To create innovation in alternate energy and

provide services beyond customer expectations. Sun Power is
dedicated to reducing emissions of climate changing gases such as
carbon dioxide and our aim is therefore to help achieve sustainability
so that we conserve and preserve valuable energy commodities for a
.brighter future
 Executive Summary
SUN POWER is new start up in industry of renewable Energy, will empower the
country’s underdeveloped communities residential areas, commercial areas,
educational institution and agriculture sector and other sectors who are directly and
indirectly contribute to country. Its Location is Jhelum and the Local area is the first
priority of Sun power. SUN POWER is ready to support valuable customers in
reducing your energy costs through energy efficient measures. SUN POWER’s
energy services cater to all stakeholders, building owners, manufacturers, and end
consumers.

Our business will fall in solar industry and our targeted market is commercial area and
residential area mainly. As the economy of our country mostly rely on corporations.
Modern economies rely heavily on energy no country can prosper without the
appropriate utilization of energy. Hence Pakistan has realized the need to explore the
potential resources of renewable energy to cope up with increasing gap between
demand and supply. Pakistan economies is developing economy and mostly citizens
have low pay job. Due to the current high rate of inflation the citizens facing
difficulties to pay electricity bills and Pakistan is also facing energy crisis and more
.short falls in summer
The solar system is appropriate system to overcome this problem. As we know the
industry of solar system is growing in our country and developed countries like china,
Russia and mostly European countries engage in this system for many year we
attempted this system few years ago and yet the system is not matured. Sun power is
passionate to contribute the country and overcome its major problem through this
business. solar energy in Pakistan is deemed to be an alternative source of energy for
economic prosperity. Solar energy is abundant resource in Pakistan which is useful for
generation of electricity. Its aids in electricity generation without harming the
.environment
As the solar system is growing industry in Pakistan and there’s a lot of gap in this
industry. In our area very few solar companies are existing and mostly people choose
the big brands of solar companies like Sole-Energy, SKYElectric Limited ,Reon
Energy Limited and other companies that provide their services and charge high
costs. We feel the need of solar company in our city and aimed to develop system and
provide the people with high quality at affordable costs. Our local competitors are
.Abdullah Solar Company, Khan Solar And AES energy solution
Our practices will be sales as well as services of solar system. We will provide to our
customers the best quality of solar panel, solar inverters, wires, and other stuff related
solar system installation. We will provide after sales services to our customers like
maintenance of system till 6 months after installation we will hire experienced
.electrical engineers for services and consultation to our customers
We will approach our local importers rather than approaching the companies who
manufacture the solar panels. The importers who will provide us the best solar panel
that is successful in Pakistan with best quality at affordable price are CDGITAL,
ELECTROLINE, OURSUN PAKISTAN LIMITED And AL-FAHAD
CORPORATION. If we approach directly to the companies that manufactures the
solar panels existing in china and Russia mostly requires highest investment in billions
and it is difficult for new venture to do this, our Pakistani importers mostly choose
china for import of solar panels because it is easy to import from china. Mostly news
ventures approach local importers for solar panels and other related stuff for her solar
.store and services
The hierarchy of SUN POWER will be consist on three managers, finance manager,
marketing manager and electric manager. The CEO itself will be a finance manager
and manage the financial activities of business. There is assistant under marketing
manager and 3 electricians under electric manager. The electric manager will visit the
cite and also consult people and direct to the electricians regarding the system
.installation. This group members are the founders of SUN POWER
The crispy segment of this business is that, there is no any solar panel manufacturing
company. Our future goal is to manufacture our own solar panels rather than buying
from importers or approaching direct to the companies in china and Russia. The
structure on which panels are placed are rarely manufactured in Pakistan. Our goal
.also to make those steel bars that are used for making a structure for solar panels

Problem
As of right now, the world is facing a shortage of energy and it has sent shock waves
from Europe to Asia. And Pakistan is no exception. The energy industry in Pakistan is
in crisis, due to a lack of energy output to keep up with the country’s rising demand
during the past few decades. Pakistan is now reliant on imported energy resources like
gas and oil. The rise in global oil prices, devaluation of the Pakistani rupee, and the
domestic political and economic crisis in Pakistan are propelling the state towards
becoming energy insecure. We note that Pakistan has become heavily dependent upon
energy exports. However, it still needs to find alternatives if it wants to overcome its
energy insecurity and meet its domestic energy demand. If left unchecked, the current
.energy crisis will devastate the already struggling economy of Pakistan
The Asian development bank published a white paper in 2019 claiming that Pakistan
is an energy insecure country. Besides Pakistan, there are numerous countries
worldwide including the developed ones that are also energy insecure. There are
several examples of market growth followed by a downturn and severe contraction
since the energy industry is, by nature, in a loop. But the current crises are different in
several aspects. The recent increase in energy costs has given us a glimpse into the
future, where market disruptions might result if the transition to low-carbon energy
sources is not adequately managed or stressed. According to our research might face
an extremely challenging and disastrous winter as a result of the lack of long-term
.energy management strategies by policymakers
The crisis is likely to worsen due to the Middle Eastern countries, which serve as the
major source of imports, being severely impacted by the strain that Europe is
experiencing as a result of the fuel and gas shortfall. The current bleak situation shows
that the power shortfall at the moment is about 7,500 megawatts which subsequently
results in 10-18 hours of load-shedding. This means the current supply is about 1,800
megawatts and the required supply is 25,000-25,500MW. Furthermore, Pakistan’s
.energy cost doubled in the last 9 months; it now stands at 15 billion USD

Energy Profile of Pakistan

GOP, a.k.a. the Government of Pakistan, has unveiled a number of initiatives to

facilitate the public’s access to energy, spur economic expansion, and find a solution
:to the energy issue. The initiatives include
 The National Power Policy 2013
The policy aimed to develop a power production, transmission, and distribution
system that was effective and could fulfill the requirements of the populace while
.boosting the economy of the nation in a cost-effective and sustainable way
 Power Generation Policy 2015
The fundamental GOAL OF POLICY was to have enough cheapest available power
production capacity while emphasizing the use of domestic resources, enabling all
parties engaged in the trade, and protecting the environment.

 Alternative and Renewable Energy Policy 2019

The major objectives of 2019 policy was to encourage and support the nation’s
development of renewable resources.
To satisfy the nation’s needs, Pakistan produces a very small fraction of its total oil
output. The production of domestic oil is restricted by technical, budgetary, and
technological limitations. According to the most recent figures, the cost of oil imports
surged from July through April of FY2022 from US$8.69 billion to US$17.03 billion,
a 95.9% rise.
Oil is becoming more costly due to rising global oil prices and the severe devaluation
of the Pakistani rupee, which is putting pressure on the country’s external sector and
worsening its trade imbalance. Similarly, between July and April of FY2022, imports
of LNG (liquefied natural gas) increased by 82.90% in value, while imports of
liquefied petroleum gas (LPG) increased by 39.86%.

Pakistan is also using nuclear technology to produce electricity, and its share is rapidly
growing. During the period of July–March FY2022, the gross capacity of nuclear
power plants rose by 39% to 3,530 MW, delivering 12,885 million units of energy to
the national grid.

If we see the consumption of electricity by different sectors throughout Pakistan, it is

divided into various areas like domestic, commercial, industry, etc.

Units Sold Agricultur

Household Commercial Industry Others Total
(GWh) e

FY2020-21 41,508 6,246 22,280 7,558 7,008 84,600

(July-March)

FY2021-22 42,055 6,648 25,160 8,151 7,347 89,361

(July-March)

Electricity consumption per sector

Entrepreneurial Solutions

For Pakistan’s energy sector to be supported, it requires reliable funding and tax
reforms. Then Pakistani entrepreneurs have a golden chance to come up with clever
ideas to tackle the energy insecurity problem of Pakistan. They should mobilize land,
labor, and capital based on the research by policy experts to invest in the
manufacturing of green technologies that will be used locally as well as
internationally.

The Government of Pakistan is soon coming up with a National Innovation Fund of

Rs. 100 Billion according to unofficial sources of the Planning Commission of
Pakistan. The Innovation Fund will aim to provide financial subsistence to innovative
entrepreneurial ideas that can contribute to the economic improvement of Pakistan.
So, young graduates and businesses have a great opportunity to create and pitch for
green technology. They must come up with unique, efficient, and cost-effective ideas
for such a remarkable opportunity.

Energy remains one of the critical challenges of the future. Businesses need to strike
the balance between operational efficiency and sustainable development. With soaring
energy prices and increased scarcity of natural resources, pinpointing energy
efficiencies – from planning to manufacturing to operations - makes good business
sense.

One way of reducing energy costs is to become more energy efficient so as to

optimize existing resources and plan the right investments in new technologies. This
will help manage operating costs and provide better delivery of services to customers
while reducing environmental impacts and mitigating risk. Additionally, a
documented commitment to sustainable development is a powerful and effective way
to demonstrate social responsibility and meet changing customer preferences.

SUN POWER is ready to support you in reducing your energy costs through energy
efficient measures. Our energy services cater to all stakeholders, building owners,
manufacturers, energy providers, regulators and end consumers.

Solar Energy; The King of Future and Pakistan’s Potential

Modern economies rely heavily on energy. No country can prosper without the
appropriate utilization of energy. Almost all areas of economic activity need energy
for smooth functioning. This is equally true for developing countries like Pakistan.

Hence, Pakistan has realized the need to explore the potential resources of renewable
energy to cope up with the increasing gap between demand and supply.

One of the most bounteous and reliable natural energy resources is solar energy. It
holds even greater significance for Pakistan since we are facing a severe energy-crisis,
negative effects of climate change, and economic challenges as well.

Opportunities
The socio-economic development of a country depends upon the energy supply. Like
most of the developing countries, Pakistan has been relying on conventional ways of
power generation.

On the other hand, energy demand is increasing as a result of the rising population and
growing industry. This resulted in huge shortfalls in the power supply.
Pakistan has to take advantage of its ideal climatic and geographic conditions as well
as other opportunities at hand to combat the energy crisis.

Pakistan can also reap great benefits of solar energy by introducing a sound
mechanism of converting solar power into a viable energy resource for use.

It’s gaining even higher prominence in the current scenario when the winter is around
the corner, and minister for petroleum division Omar Ayub has announced a
premonition of gas shortage and a rise in prices.

Going solar would save us from the nuisance of shortfall of gas in severe weather for
the time being, and it would also render its long-term fruits over time.

SUN POWER has stepped up as the best solar service company to help Pakistan go
solar in an efficient manner.

With its innovative technology, it gives its customers optimized solar solutions in
diverse categories including advanced solar panels, PV system design technology, and
inverters.

Need to Explore Solar Energy

Affecting the daily lives of the public. All the vital sectors of Pakistan such as
agriculture, industry, transport, and household need a consistent supply of energy to
work smoothly.

Pakistan has The energy crisis is not only hampering economic activity but also badly
great potential to generate renewable energy with a good deal of options such as
hydropower, wind power, etc. but solar power surpasses the other available choices on
account of serviceability standards. It is the most feasible alternative energy resource
for Pakistan.

The president of the Renewable and Alternative Energy Association of Pakistan once
said that investment in (solar) energy was much better than expending in the
exploration for fossil fuels and the construction of dams.

Once Pakistan utilizes its full potential to exploit solar power generation, it would not
only lead to self-sufficiency in power generation but also economic stability and
prosperity.

Economic benefits

Pakistan imports raw materials and has to bear a huge expenditure on electricity
generation. With a substantial solar power generation system in the country, Pakistan
can save its valuable non-renewable resources without affecting its pace of growth.
Moreover, while facing challenges like poverty and unemployment, Pakistan sees the
solar energy generation industry as a big opportunity at hand.

By expanding the industry, Pakistan has great chances to deal with unemployment
effectively along with gaining a boost in other sectors.

Improvement in quality of life

Switching to solar positively affects the quality and living standards of the
community.

Many areas receive direct sunlight and remain hot for most of the year. Household
owners find it a relief to air-condition their homes without bothering about electricity
costs while using solar energy.

In winters, big trouble of gas shortage shadows the whole of the country. Just imagine
everything going smoothly even if the gas is not there, you don’t get late for work,
school, or university and you have your fresh and hot meals ready in time. It sounds
pleasing to cook in winter without any hassle due to gas shortage.

Similarly, during the winters, people need to keep their homes and offices heated.
Expensive electricity and the absence of gas make the solar solution the best
alternative to beat the chill with no extra burden on your pocket.

Better Climate quality

Solar power generation is eco-friendly as no green-house gas emission is involved in

this process. Furthermore, it doesn’t require the destruction of eco-systems for the
sake of raw materials.

Since Pakistan is facing great challenges in coping with climate change, it’s a good
idea to exploit the valuable natural energy sources and save our environment and other
limited resources from depletion.

We can get full advantage of the sun’s rich energy to meet our needs while being
harmless to our natural environment.

It can also prove to be a vital measure to support the Clean and Green Pakistan
initiative by the PM of Pakistan.

Measures to Promote Solar Energy

Like all developing countries, Pakistan has been looking out for less-expensive
alternatives for energy.
Realizing this need, Pakistan has set up its agency named AEDB to facilitate and
promote the development of alternative and renewable energy in 2003. The
government handed over its administrative control to the Ministry of Water and Power
in 2006. Initially, it was assigned the task to execute policies and projects in the
private sector regarding ARE, support in sustainable economic growth, and promote
local manufacturing base for ARE technology.

The government tasked the AEDB to make sure 5% contribution of renewable energy
to the national production. Also, AEDB aims to electrify 7,874 remote villages in
Balochistan and Sindh provinces with the help of ARE technologies.

Importance of technology and quality

Solar is the future. But to achieve the leading position in solar panels installation,
Pakistan has to cater to one essential aspect i.e. the quality and technology of solar
systems.

Different technologies such as photovoltaics, desalination, and solar thermal, etc. are
being used in Pakistan for customized solar solutions.

Monocrystalline Photovoltaics have proved to be the most efficient and beneficial for
homeowners.

The technology and quality of solar panels determine the efficiency of the system.
Efforts are constantly carried out to enhance the capacity of cells of solar PVs to make
it more productive.

Governmental support to encourage solar system

Pakistani governments to date have commissioned six solar power projects with a
cumulative capacity of 430 MW to supply electricity to the national grid. These are
mainly in Kashmir, Punjab, Sindh and Balochistan. The Quaid-e-Azam solar park
situated in the desert area of Lal Sohanra in Cholistan, Bahawalpur has one of the
largest solar plants in the country with a capacity of 100 MW peak in a covered area
of 500 acres.

The present government has launched a comprehensive National Solar Policy for
provision of environmentally friendly low-cost solar energy to address the nation’s
energy crisis. All these initiatives must be pursued with sheer consistency,
determination and hard efforts to tap the best usage of solar power in the country. The
facility of net metering should be extensively provided to the consumers in the
country for availing the green way of electricity generation. This is deemed to be
important in making the country self-reliant in the field of energy so that the issues of
power theft, circular debt and distribution losses are minimized.
The current prime minister issued the instructions while chairing a meeting on solar
initiatives across the country, in which, he also directed the authorities concerned to
carry out comprehensive planning for an early execution of the solar projects.

PM-led body to unveil solar policy on Aug 1st 2022

He informed the meeting that the people would be provided with solar systems as an
alternate to the costly electricity being generated, using imported fuel, adding that
special priority will be given to Balochistan while providing solar system.

He added that the solarization would not only reduce the import bill of costly fuel but
also help generate low-cost and environment-friendly electricity.

The meeting was briefed in detail on low-cost solar power projects as an alternative to
expensive imported fuel. It was told that solarization projects of 14000 MW will be
launched in the next few months out of which projects of 9000 MW will be completed
on a priority basis. Under these projects, solar systems will not only be given at
discounted prices but tax incentives will also be given on these projects.

Feasibility Analysis
When we group members are thinking about this business idea for this business we
met with some people who are already engaged in this business and we go through
with a lot of information about the industry the market and customers also products
and services regarding this business. We met with the local business man named Ali
Ahmed owner of khan solar situated in Jhelum city, also the marketing manager
Hasan. He gave us very useful information related to solar system business. The
business description we provided to him is given below. He really appreciated us and
asked to available anytime for us to answer of every query related to this business,
industry, market, products and services, and our customers as well.

Concept statement

SUN POWER is new startup by fresh graduates. We find a problem in our society,
there is nothing wrong if we say it’s the major problem that our country is facing. It is
also window of opportunity for the people who know about solar industry and its
market as well. As the economy of our country mostly rely on corporations. Modern
economies rely heavily on energy no country can prosper without the appropriate
utilization of energy. Hence Pakistan has realized the need to explore the potential
resources of renewable energy to cope up with increasing gap between demand and
supply. Pakistan economies is developing economy and mostly citizens have low pay
job. Due to the current high rate of inflation the citizens facing difficulties to pay
electricity bills and Pakistan is also facing energy crisis and more short falls in
.summer
Our business will fall in solar industry and our targeted market is commercial area,
residential area mainly, educational institutes and agriculture sector which is our
.backbone
Our practices will be sales as well as services of solar system. We will provide to our
customers the best quality of solar panel, solar inverters, wires, and other stuff related
solar system installation. We will provide after sales services to our customers like
maintenance of system till 6 months after installation we will hire experienced
electrical engineers for services and consultation to customers. Few benefits also
mentioned that solar system help to reduce your electricity bills. Reduce your carbon
footprint. Secure government rebates. Better for the environment. Add value to your
home. Solar energy is a form of renewable energy. Get paid for your excess solar.
.Solar panels require little maintenance
We will approach our local importers rather than approaching the companies who
manufacture the solar panels. The importers who will provide us the best solar panel
that is successful in Pakistan with best quality at affordable price are CDGITAL,
ELECTROLINE, OURSUN PAKISTAN LIMITED And AL-FAHAD
CORPORATION. If we approach directly to the companies that manufactures the
solar panels existing in china and Russia mostly requires highest investment in
billions. As Mostly news ventures approach local importers for solar panels and other
related stuff for her solar store and services. We will also approach our local
.importers
The hierarchy of SUN POWER will be consist on three managers, finance manager,
marketing manager and electric manager. These group members are founders of SUN
POWER. The CEO itself will be a finance manager and manage the financial
activities of business. There is assistant under marketing manager and 3 electricians
.under electric manager

Product/Service feasibility analysis

SUN POWER will introduce affordable electricity to our customers by offering

attractive financing options for solar electric systems. As our main focus on to help
our society by introducing solar for saving costs. We will provide solar system to
residential areas on affordable easy installment planThis will enable families to make
purchases in small monthly installments.
We made analysis of our venture’s product and services through concept testing and
usability testing

Concept Testing

We visited to a engaged business in solar market to know the customers interest and
desirability and their intent to purchase solar equipment like solar panels, wires,
inverters and batteries. There are multiple qualities of solar panels and inverters and
batteries. We accomplished the purpose to validate and underlying the premises of
product and service idea by visiting different solar business and stores in Jhelum.

In Pakistan, the solar panels by JINKO are successful and one of the leading option in
market at the moment. Mostly people choose this panel for their solar system. Panels
by JINKO have 25 years warranty. Their quality also best.

If we talk about solar inverter, then GOODwe, Soils solar inverters, ABB solar
inverters, Huawei solar inverters SMA solar inverters, suntwin and Infini solar
inverters mostly leading in in market. These inverters have 5 years warranty.

If we talk about batteries then Narada solar batteries are very popular and widely
used in solar systems. with a series of renewable energy products to its name, Narada
polymer gel batteries have high charge storing capacity and tend to perform much
better than traditional counterparts.

These are the main equipment of solar system about which every customer is
conscious and want to buy and install the best quality equipment.

SUN POWER will also approach to these products for its store and provide these to
customers at affordable prices.

Usability Testing

As we did not met solar customers, we just visited to Khan Solar and few other solar
stores where we asked to owners about demand of customers and the review of
customers about these products.

The products is mentioned above are the best quality products and the review of
customer is positive regarding these products.
There are also some local products in market that are not the choice of customers
because they do not provide the ease-of-use to customers. The customer only choose
those products that provide them ease-of –use and their output is efficient and
progressive.

In future, we will choose the basic prototype usability testing as we starting up new
venture and our budget is limited to develop a fairly basic prototype and will ask our
friends and colleagues to give us review about our products and services that we are
providing to our valuable customers.

In this way we will develop fairly our usability test of our products and services.

Industry/Market Feasibility Analysis

if we talk about the industry and market of our solar products and services; as we
mentioned in our executive summary that its is growing industry in Pakistan and there
is huge gap in this industry for new ventures. The window of opportunity is open for
this industry. Anyone who have knowledge about solar system can enter to this
industry and he/she must be consistent and passionate to start solar system as new
venture. There are three issues that every new venture faces when it is enter in any
industry.

Mostly business fails because they have not knowledge about the industry in which
the business is going to enter; industry attractiveness, market timeliness and
identification of niche market.

Industry Attractiveness

SUN POWER is going to enter in solar industry which is growing industry in

Pakistan. And its really important industry and Pakistan must need such industry to
overcome the crisis that are facing by our country. And this industry is also important
for customers as well as country because our objective to start this business is to cover
the residential area as well as our other sectors like corporations, educational
institutions and agriculture sector which is the backbone of our country.

This industry is fairly young as it is at growing stage in Pakistan. In most of the

countries which are developed, the solar industry is matured but not in our countries.
So there is huge gap in it and window of opportunity is open for this industry.

There are huge operation margins in this industry. Like sales of solar equipment and
services like solar system installation and maintenance. In our city few solar
businesses exist that we can count in our finger tips. This industry is not crowded. It is
difficult to enter in such industry that is matured and crowded and new venture mostly
cannot survive due to lack of knowledge and they out their resources in that industry
and the business fail. As solar industry is not crowded and growing business, new
venture if enters now. It will not face more competitors. Because there is huge gap in
this industry since it is started.

As we know there are 2 ways to know the industry attractiveness one is Primary
research and the other is secondary research.

Primary Research

We use the Primary Research to know the attractiveness and growth potential of
industry by visiting different business owners and solar stores. We seek a lot of
information regarding solar industry. We visited our local solar business owners and
stores where we collected the information about customer’s interest customer’s
demand, desirability regarding solar system and products and services and intention to
approach solar system.

Market Timeliness Consideration

The nature of SUN POWER’S products and services is same like the existing
products and services and we will try to improve those services and quality of
products toward our valuable customers.

If we talk about window of opportunity then this opportunity is open for new ventures
to this industry as it is growing industry of Pakistan. And there is huge gap till now
since it is started. It is the best time to enter in this market as our country facing high
inflation rate and energy crisis. We should contribute overcome on crisis by starting
new venture and spreading information to our people as our people do not know much
more about this new technology. If we enter in this industry now then it is golden
opportunity for all new entrants as we will not face more competitors present time.
There are no more competitors in this industry, people now seeking information about
this technology as they are facing high energy rates. They face difficulties to pay high
electricity bills and want alternate way of energy. Solar system is the best alternate as
compare to others alternates.

Identification of niche market

The renewables sector is entering an exciting new phase. Rapidly evolving

technology, economies of scale and regulations and changing attitudes among policy
makers means that, despite reductions in subsidies, renewables are winning market
share from fossil fuels around the world.
If we talk about niche market of this industry; it is growing business and there is huge
gap till now since it is started. Every business in this industry provides sales and
services to its customers. Like selling the solar equipment and installing solar system.

But they do not focus on niche market. The SUN POWER focused on niche of this
market is to make our own steel bars for the structure on which the panels are placed. .
The structure on which panels are placed are rarely manufactured in Pakistan. Our
goal also to make those steel bars that are used for making a structure for solar panels.

There is almost no any institute who provide the information and training to people
about this system and installation this system as well. The SUN POWER have aim to
develop such institute where it will provide information related to this system and also
provide trainings to install the solar system of every kind. The major niche is that
there is no any company that manufacture the panels and its major problem and
challenge for solar business. . Our future goal is to manufacture our own solar panels
rather than buying from importers or approaching direct to the companies in china and
Russia and US countries.

Organization Feasibility

When an entrepreneur starts a new venture, he/she must have passion and other
required skills to survive in industry. He/she has sufficient skills and resources to
bring a particular services and products to market through business idea.

There are two issues consider mostly in this area. That are Management Prowess and
Resources Sufficiency.

Management prowess

SUN POWER is passionate willing to contribute to the country have ability to its
management to perform tasks related to its business and to maintain this new venture.
We will have expert electricians under electric manager for our services to our
valuable customers. The electric manager will visit the cite and prepare the structure
of how to install the solar system. Our major activity is to provide services and after
sale services. For this activity we will never compromise of any kind. Our solar
installation team will be passionate expert and efficient. And they will satisfy the
customer by their quality of work. We will never compromise on quality of products
and our services.

Resources Sufficiency

As we mention above in executive summary that the our major business activity is
providing service rather than selling products. Our more focus is on providing
services. As if we sell products then huge capital is required and for new venture it is
difficult to arrange huge capital. The panels are not manufactured in Pakistan that’s
why huge amount of capital is required to import panels from china, Russia and US.
SUN POWER will do its business with in its sufficient resources. The future goals of
SUN POWER is to manufacture our own steel bars for structure of solar panels and
our major future goal is to manufacture solar panels in our own country. We also have
property for our office and place for store and for our stock. We will hire the expert
team of our electricians because we will never compromise on our services quality.
Government also made such policies that support this business and encouraging this
business as our country facing energy crisis and want an alternate way of energy.

Financial Feasibility

When our team visited to khan solar to get information about solar business there was
our first question is how much initial capital requirement for this business to start.

Capital Requirement

It depends on whether the business will only provide services or sales of products to
their customers. To develop a store of solar products, huge amount is required, almost
in billions but if we go to provide just services of solar installation, less capital is
required to start this business rather than developing a store. Because the major
product in solar store is solar panels that are the central part of solar system. And
panels are not manufacture in Pakistan. We have to import these panels from other
countries such as china, Russia and US. We have to order containers which is too
costly in billions. And it is difficult to arrange capital in billion to start new venture.
So it is the easy and only way to enter in solar industry by providing services to our
targeted market. A rough idea we got from KHAN SOLAR that we can start this
business by investing 10 lacs as and we will enter as service providers.

Financial Rate of Return

Our question of rate of return to KHAN SOLAR along the investment question. We
got rough idea as new venture has not past financial records from where they can seek
exact idea of rate of return.

In a market, the solar business have profit margin 10% to 12% on installation of 5KW
solar system. As the SUN POWER is new entrant in solar industry so we will have
our profit margin on 5KW solar system 8% to 10%.

The average system is installed by new venture in a month is 1. It is sometimes the

seasonal business, when summer season comes the demand of solar system increases
and the solar companies may reject orders because they do not have time for more
orders. It takes a long time to install even small solar system. If solar system is On
Grid it is a benefit for the consumer in a way that the electricity will produce and not
consumed so consumer can transfer the electricity to the electric company through Net
Metering. It is positive aspect of Solar system. We should see this renewable energy
resource in a positive manner. We really need this renewable energy resource.

Business Model of SUN POWER

 Business Plan of SUN POWER

Section 1: Executive Summary

SUN POWER is new start up in industry of renewable Energy, will empower the
country’s underdeveloped communities residential areas, commercial areas,
educational institution and agriculture sector and other sectors who are directly and
indirectly contribute to country. Its Location is Jhelum and the Local area is the first
priority of Sun power. SUN POWER is ready to support valuable customers in
reducing your energy costs through energy efficient measures. SUN POWER’s
energy services cater to all stakeholders, building owners, manufacturers, and end
consumers.

Our business will fall in renewable energy industry and our targeted market is
commercial area and residential area mainly. As the economy of our country mostly
rely on corporations. Modern economies rely heavily on energy no country can
prosper without the appropriate utilization of energy. Hence Pakistan has realized the
need to explore the potential resources of renewable energy to cope up with increasing
gap between demand and supply. Pakistan economies is developing economy and
mostly citizens have low pay job. Due to the current high rate of inflation the citizens
facing difficulties to pay electricity bills and Pakistan is also facing energy crisis and
.more short falls in summer
The solar system is appropriate system to overcome this problem. As we know the
industry of solar system is growing in our country and developed countries like china,
Russia and mostly European countries engage in this system for many year we
attempted this system few years ago and yet the system is not matured. Sun power is
passionate to contribute the country and overcome its major problem through this
business. solar energy in Pakistan is deemed to be an alternative source of energy for
economic prosperity. Solar energy is abundant resource in Pakistan which is useful for
generation of electricity. Its aids in electricity generation without harming the
.environment
As the solar system is growing industry in Pakistan and there’s a lot of gap in this
industry. In our area very few solar companies are existing and mostly people choose
the big brands of solar companies like Sole-Energy, SKYElectric Limited, Reon
Energy Limited and other companies that provide their services and charge high
costs. We feel the need of solar company in our city and aimed to develop system and
provide the people with high quality at affordable costs. Our local competitors are
.Abdullah Solar Company, Khan Solar And AES energy solution
Our practices will be sales as well as services of solar system. We will provide to our
customers the best quality of solar panel, solar inverters, wires, and other stuff related
solar system installation. We will provide after sales services to our customers like
maintenance of system till 6 months after installation we will hire experienced
.electrical engineers for services and consultation to our customers
We will approach our local importers rather than approaching the companies who
manufacture the solar panels. The importers who will provide us the best solar panel
that is successful in Pakistan with best quality at affordable price are CDGITAL,
ELECTROLINE, OURSUN PAKISTAN LIMITED And AL-FAHAD
CORPORATION. If we approach directly to the companies that manufactures the
solar panels existing in china and Russia mostly requires highest investment in billions
and it is difficult for new venture to do this, our Pakistani importers mostly choose
china for import of solar panels because it is easy to import from china. Mostly news
ventures approach local importers for solar panels and other related stuff for her solar
.store and services
The hierarchy of SUN POWER will be consist on three managers, finance manager,
marketing manager and electric manager. The CEO itself will be a finance manager
and manage the financial activities of business. There is assistant under marketing
manager and 3 electricians under electric manager. The electric manager will visit the
cite and also consult people and direct to the electricians regarding the system
.installation
The crispy segment of this business is that, there is no any solar panel manufacturing
company. Our future goal is to manufacture our own solar panels rather than buying
from importers or approaching direct to the companies in china and Russia. The
structure on which panels are placed are rarely manufactured in Pakistan. Our goal
.also to make those steel bars that are used for making a structure for solar panels
 Section 2: Company Description
THE SUN POWER is new startup in renewable energy resource industry that is solar
energy. This business will provide all kind of services and products related solar
system. SUN POWER is aimed that never compromise on the quality of products and
.services
The mission statement of SUN POWER is “To create innovation in alternate
energy and provide services beyond customer expectations. Sun Power is
dedicated to reducing emissions of climate changing gases such as carbon dioxide
and our aim is therefore to help achieve sustainability so that we conserve and
”.preserve valuable energy commodities for a brighter future
The SUN POWER will provide all type of products related solar system installation
and also services of all kinds that are On Grid, Off Grid and Hybrid solar system. The
main products that SUN POWER will provide are panels, inverters and batteries
The aim of SUN POWER is never compromise on the quality of products and
services that is the reason the future goals of this business is to manufacture its own
.products related solar system installation
The group members are the founders of the SUN POWER, and will manage the
business as the they are also hierarchy. As SUN POWER is new startup and we are
trying to reduce our costs as we can. And we are doing this to hire the experts
.electricians to provide the fine quality of our solar system installation services
The hierarchy of the SUN POWER is simple and short. There will be three managers
in this hierarchy, Marketing, Finance and Electric manager. The finance manager
itself the CEO of the SUN POWER, who will manage the financial activities of the
business. There is an assistant under Marketing manager who will directed directly by
related manager for marketing plan and strategies. The electricians will work under
the electric manager. Electric manager will also consult to the customers related their
system, also visit the cite where system will be installed. Also will direct completely
.about installation or solar and its mode as well

Section 3: Industry Analysis

SUN POWER is the business falls in renewable energy. There are different sources of
renewable energy, like, solar energy, wind energy, hydro energy, tidal energy,
geothermal energy, biomass energy. If we talk about the solar energy, it is the most
appropriate source of converting sun rays into energy and it is the suitable alternate of
.energy
Solar energy is newly introduces and it is growing industry in Pakistan. Other
developed countries approached this system for years ago. Almost 2 decades, Pakistan
approaches this system and due to lack of information. This industry grew very slowly
and because it is new thing, a different alternate of energy that is why the people are
insecure to adopt this alternate of energy. Now mostly people are curious to know
about this source and also in corporations, they have adopt this system as their
.alternate way of energy
This system now growing up fastly. And it is an opportunity to enter in this industry.
The people who are engaged in electronics business are now shifted to solar energy
system. as this is new and growing industry of Pakistan. The participants of this
.industry are deal with the products and services related solar energy
The key success factors of solar energy is to provide the best quality of products and
services to valuable customers. There are high prices in the markets of solar energy
and the affordable prices are also key success factor of the business
The industry trends are to improve this system by introducing new kind of equipment.
New kind of inverters are being launched in market and double sided solar panels
also. The trends of industry toward this system are manufacturing these products at
our own country. But it is difficult to do that as huge capital required to purchase
plants that will help to manufacture the products. They improving their ways to
provide services. But there is really need of experts and engineers to make services
better. Customers are suffering the low quality products and services at high prices.
Because there is huge gap in this industry. Those who are the participants are just
.interested to make profit
Long-term perspectives of the industry is to manufacture the products like panels and
inverters. Also batteries are of different kinds. There is no any company in Pakistan
that is manufacturing the panels and inverters. The long-term prospective of SUN
POWER is also the same. We are aimed to never compromise on quality of products
.and services

Section 4: Market Analysis

As is it mentioned in industry analysis section that there are many sources of
renewable industry sources. . There are different sources of renewable energy, like,
solar energy, wind energy, hydro energy, tidal energy, geothermal energy, biomass
energy. If we talk about the solar energy, it is the most appropriate source of
converting sun rays into energy and it is the suitable alternate of energy. We choose
this segment and make a business plan named SUN POWER. As this energy resource
is introduced newly in our country. Because of electricity crisis and high prices. Our
target market mainly is to provide services with aim that we will never compromise on
the quality of services. Our focus on develop a store contains the basic solar products,
like panels, inverters and batteries. As dry batteries, lithium batteries, and now super
.capacitor are now introduces in market to store the energy
The buyer behavior is to but the products that are affordable and having reasonable
quality. It depends on buyer that how much he can afford. There are multiple qualities
of products now in market. Buyer ask the rates from different dealer. The dealer who
give the quality of product at reasonable price, customer picks up the product from
.that dealer
If we talk about the competitors, there is a huge gap in market as it is growing
industry. It is introduces as alternate way of electricity. There are participants in
market who either providing services or dealing with the products related solar
system. There is no more competition in this market and it is the golden opportunity
for new entrants as they do not need to compete toughly with any other participants
.and they can have strong position in the industry

Marketing Plan
The overall marketing strategy of the SUN POWER follows the steps describe in
.below
Understand your product, One of the easiest ways to lose a potential customer is not
providing enough information. we should be ready to answer anything about your
product. However, this does not mean you need to get overly specific. Having general
information about the solar industry is enough. We need to show that you have enough
resources to provide our customers with information. This builds credibility. And if
we have got a staff, we will ensure that we give them an easy-to-navigate database
containing facts, procedures, a rock-solid marketing plan, and product knowledge to
.deal with customers efficiently
We need to make our customers feel safe about making a purchase decision. But if we
fail to do this, our buyer will go away. So we understand our products and our services
.completely. We will have experts who will deal with customers
Conduct market research Growing our solar business is not easy, especially if we
.lack a thorough understanding of the solar industry
Of course, we can spend thousands trying to increase revenue, but it is unlikely to be
successful if the market is not ready for you. Market research clues you into what
people are (and are not) willing to buy. And it keeps you from wasting money
.unnecessarily
The SUN POWER will conduct proper market research to know what are in trend.
What are the products that the buyers have intention to purchase and which kind of
services they want. We will conduct research through asking by different customers
:and local dealers. Few questions we will try to know through our research
 Who’s my target audience?
  What’re the demographics of my audience?
 What’re the latest market trends in the solar business?
 Which geographical locations should I target to get new buyers?
 What solar products are currently driving growth for different solar panel
companies?

Identify our unique value proposition a unique selling point/proposition, Unique

value proposition is a specific benefit that makes you stand out from your
competitors.
When identifying our solar business’ Unique value proposition select a feature that
provides our customers with long-term benefits and economic value. For example, if
our solar business promotes more output, high capacity, or durability, highlight how
these features will benefit your audience over what other solar panel companies offer.

Moreover, people prefer products from companies they feel connected to. We may
engender a sense of relatability with our customer by mentioning our mission. For
example, if our company provides solar products at an affordable rate, say something
like “bringing affordable electricity.”

Buyer’s remorse can be avoided by offering a money-back guarantee. This can help
relieve some of the anxiety around making a purchase and ensure that the customer
feels safe risking their money with you.

Give a money-back guarantee Fear of financial loss can have a real influence on our
customer’s purchasing decisions. Think about it from their perspective. What can you
do to alleviate this fear? What can customers do if their purchase does not work for
them?
Buyer’s remorse can be avoided by offering a money-back guarantee. This can help
relieve some of the anxiety around making a purchase and ensure that the customer
feels safe risking their money with us.

Remarket for more deals Remarketing is a tactic that serves targeted ads to people
who have already visited our site or taken a certain action. It helps us stay on top of
yur customer’s minds.
Pushing our promotional offer with remarketing is a smart move. It will increase our
brand recall value, a marketing term that defines the total number of people who can
remember our brand.

These are the few steps that our marketing plan will circulate around them.
 Section 5: Management team and company structure

The structure of SUN POWER is simple. The hierarchy of the SUN POWER is simple
and short. There will be three managers in this hierarchy, Marketing, Finance and
Electric manager. The finance manager itself the CEO of the SUN POWER, who will
manage the financial activities of the business. There is an assistant under Marketing
manager who will directed directly by related manager for marketing plan and
strategies. The electricians will work under the electric manager. Electric manager
will also consult to the customers related their system, also visit the site where system
will be installed. Also will direct completely about installation or solar and its mode as
.well
As SUN POWER is new startup and we are trying to reduce our costs as we can. And
we are doing this to hire the experts electricians to provide the fine quality of our solar
system installation services.

Section 6: Operation plan

The SUN POWER will provide all type of products related solar system installation
and also services of all kinds that are On Grid, Off Grid and Hybrid solar system. The
main products that SUN POWER will provide are panels, inverters and batteries.
The aim of SUN POWER is never compromise on the quality of products and
services that is the reason the future goals of this business is to manufacture its own
.products related solar system installation
Our practices will be sales as well as services of solar system. We will provide to our
customers the best quality of solar panel, solar inverters, wires, and other stuff related
solar system installation. We will provide after sales services to our customers like
maintenance of system till 6 months after installation we will hire experienced
electrical engineers for services and consultation to customers. Few benefits also
mentioned that solar system help to reduce your electricity bills. Reduce your carbon
footprint. Secure government rebates. Better for the environment. Add value to your
home. Solar energy is a form of renewable energy. Get paid for your excess solar.
.Solar panels require little maintenance
We will approach our local importers rather than approaching the companies who
manufacture the solar panels. The importers who will provide us the best solar panel
that is successful in Pakistan with best quality at affordable price are CDGITAL,
ELECTROLINE, OURSUN PAKISTAN LIMITED And AL-FAHAD
CORPORATION. If we approach directly to the companies that manufactures the
solar panels existing in china and Russia mostly requires highest investment in
billions. As Mostly news ventures approach local importers for solar panels and other
related stuff for her solar store and services. We will also approach our local
.importers
Our expert electric engineers will work under the electric manager. Electric manager
will also consult to the customers related their system, also visit the site where system
will be installed. Also will direct completely about installation or solar and its mode as
well. We will hire permanent electric managers to provide services to our valuable
customers. As the participants in renewable energy industry hire the temporary
electrician that install solar system. Their consideration is just money and the quality
of their services is weak and the customer suffers and faces too many problems in
installation. We are aimed to never compromise on the quality of our products and
services. That is why we will hire permanent electric engineers that will provide the
fine quality of service and also provide the guarantee of their service. We will also
.provide after sale service till 1 year since installation
Our electric engineers will be provided with complete safety kit and tools for system
.installation

Section 7: product/Service Design and Development Plan

The mainly focus of SUN POWER is on services. As there is no any company in

Pakistan that manufactures the solar basic products like panels, inverters, batteries.
The manufacturing companies are in China Russia and US countries. And Pakistani
importers imports the solar products from these countries. Mostly From China.

SUN POWER will start the business from providing services and there will be three
electric engineers who will install the solar system to our valuable customers. SUN
POWER will also provide after sale services to our customers till 1 year since
installation. We will provide the quality of our services. In near future, SUN POWER
will develop solar store where the basic solar products will be placed at affordable
price and we also will provide a quality of products to our customers. We will
purchase the products from the importers and local dealers who will give us the
quality of product as well as the affordable price. We will adjust a reasonable profit
margin on products and sell to our customers.

Long-term future goal of SUN POWER is to manufacture the products like panels
and inverters. Also batteries are of different kinds. There is no any company in
Pakistan that is manufacturing the panels and inverters. The long-term goal of SUN
POWER is also the same. We are aimed to never compromise on quality of products
.and services
 Section 8: Financial Projections

Capital Requirement

It depends on whether the business will only provide services or sales of products to
their customers. To develop a store of solar products, huge amount is required, almost
in billions but if we go to provide just services of solar installation, less capital is
required to start this business rather than developing a store. Because the major

Product in solar store is solar panels that are the central part of solar system. And
panels are not manufacture in Pakistan. We have to import these panels from other
countries such as china, Russia and US. We have to order containers which is too
costly in billions. And it is difficult to arrange capital in billion to start new venture.
So it is the easy and only way to enter in solar industry by providing services to our
targeted market. A rough idea we got from KHAN SOLAR that we can start this
business by investing 10 lacs as and we will enter as service providers.

Financial Rate of Return

Our question of rate of return to KHAN SOLAR along the investment question. We
got rough idea as new venture has not past financial records from where they can seek
exact idea of rate of return.

In a market, the solar business have profit margin 10% to 12% on installation of 5KW
solar system. As the SUN POWER is new entrant in solar industry so we will have
our profit margin on 5KW solar system 8% to 10%.

The average system is installed by new venture in a month is 1. It is sometimes the

seasonal business, when summer season comes the demand of solar system increases
and the solar companies may reject orders because they do not have time for more
orders. It takes a long time to install even small solar system. If solar system is On
Grid it is a benefit for the consumer in a way that the electricity will produce and not
consumed so consumer can transfer the electricity to the electric company through Net
Metering. It is positive aspect of Solar system. We should see this renewable energy
resource in a positive manner. We really need this renewable energy resource.

SUN POWER’s Financial source

The group members are the founders of the SUN POWER. We prepare this business
plan and In sha Allah we will enter in renewable energy resources as solar service
provider and later on, to develop a solar products store is our short term goal just for
the purpose of providing quality of products at affordable prices. As it is growing
industry and participants are spreading negativity by their negative activities such as
weak quality of products and services at high prices.

The initial capital will be arranges by us. We will invest our savings and also borrow
some capital from our family. The local dealer and service provider regarding solar
system named KHAN SOLAR gave us rough idea for the initial capital for solar
system business. The initial capital that we will invest is 10 to 15 lac.

We will built our Office in Jhelum city, also SUN POWER’s website and social
media pages on Facebook, Instagram and our Whatsapp will be approached by every
person that will either visit our website of social media pages.

We will advertise SUN POWER by placing our Pena flexes all over the city and run
Ads on Different channels.

As our short term future goal is to develop store for basic solar products. We will may
be apply for a loan in bank for development of our solar products store.

We will manage our all financial activities through different financial techniques like
financial statements that are income statement, cash flow statements and balance
sheet. We will also maintain our profit and loss accounts. All these financial
techniques will provide us the financial situation of our business and overall business
situation in Industry.

What are the challenges?

Challenges again are associated with policy uncertainty, cost of finance, acquisition of
land, with the build out of transmission infrastructure and ease of doing business.
Each of these five challenges can be handled if you have policy certainty, if you lower
the risks resulting into lower cost of finance. By land pooling, one can create solar
parks or focus on rooftops thereby reducing the problem of land acquisition. If you
look at the transmission infrastructure plans, we need to prioritize where you are
building the grid and where the projects are coming up so the timelines can be aligned.
And finally, ease of doing business, is a challenge for the Indian industry and not just
renewables – the more we make it easy to apply for clearances and licenses, the faster
the infrastructure set up be.

Solar still faces many challenges. A major change in incentives or in the cost of solar
would affect all of these businesses, but every industry has its challenges. For now,
indications all point toward continued rapid growth as solar becomes an increasingly
important part of our energy mix. It’s an attractive proposition from any perspective.

Conclusion
The world is changing rapidly. Every process is being automated to save time and
simultaneously speed up the production mechanisms. Without energy security,
keeping up with the world will not be possible. If we strive to become competent and
develop Pakistan as a modern country, we must timely adopt renewable energy
methods to supplement our energy needs.

Due to the dynamics of the global economy, it may seem that in the near future,
Pakistan will not experience a drop in the energy issue. However, it is the
responsibility of the political leaders and the stakeholders of Pakistan to minimize this
energy crisis and find a solution to it. It’s important to keep in mind that being
optimistic will help you manage any degree of crisis. We all should do what’s in our
control to strengthen our country on all fronts.