National Sun (Names Removed)
May 22, 2015
National Sun
(Names Removed)
Project Description Methodology Market Research Financial Research Recommendations Questions
Agenda
National Semiconductor
Market Research Project◦Market Analysis◦Potential Success ◦Recommendations
Project Description
Optimizes energy output Ideal for non-uniform conditions Increases array output 10% – 30%
SolarMagic
Initial research◦Internet articles◦Press releases
Technical research◦Interviews◦Financial statements◦Analyst reports
Methodology
Analysis◦Excel models
Recommendations development
Methodology
Market Research
Growth potential
2008 install capacity and generation
Projected 40%-50% CAGR
Industry maturity 2030
Forecast
Customers◦Growing Markets◦Existing solar system owners
International Market Segmentation
◦Spain ◦Germany◦Australia◦Japan
◦China◦India◦Africa◦USA
United States◦Go Green◦Stimulus Package
Spain and Germany◦Backward Integration
Japan◦ High Demand
Top 3 Market Segments
Industry Leaders◦The top 10 module manufacturers
Business Partner Evaluation
◦Kyocera ◦Sharp◦Sanyo◦Suntech◦Sunpower◦Conergy
◦Sunergy◦First Solar◦Solarworld◦Q-Cells
Sharp Q-Cells Suntech Power◦Strategy◦Market share◦Forecast◦Financials
Top B2B Partner Strategy
Q-Cells
◦# 1 leader in PV manufacturing
◦ Growth
◦ U.S. Focus
Top B2B Partner Strategy
Sharp
◦# 2 leader in PV manufacturing
◦ Located in key market
◦ Huge growth and support
Top B2B Partner Strategy
Suntech Power
◦Growth and strength
◦ Strategic in Spain and Germany
◦ China based
Top B2B Partner Strategy
Enphase Energy◦Enphase Energy Inverter Micro Inverter
MorningStar ◦Sunsaver Maximum Power Point Tracking
Act Solar◦Power String
Competitor Products
Financial Research
Pricing Model
Pricing Model
Cost Per Kilowatt 0.25 Recaptured Kilowatt 1277.5
% of Shades 0.03Recaptured Annually (S)
319.375
% Power Loss 0.25Decreased in Payback Period
2.41134
Average Sunlight 5 Annual Savings ($)
319.375
Recapture Rate 0.5Annual Savings Per Unit
9.98047
Net Cost for System 25536 Estimated Life of Unit 25
Value Pricing per Solar Magic
$ 173.79
Pricing Model
PG&E Baseline Territory X
Value Proposition
Cost/kWh
Baseline – 360 kWh $0.11
101% - 130% $0.13
131% - 200% $0.26
201% - 300% $0.38
Over 300% $0.44
Demand: 700 kWh
Value Proposition
5.6 kW 4.2 kW 2.8 kWGrid Electricity (kWh)
170 300 440
Annual Cost Savings
$160 $130 $140
Equivalent Panels 9 6 4Payback Period 22 21 13ROI 1% 1% 6%
Demand: 1300 kWh
Value Proposition
5.6 kW 4.2 kW 2.8 kWGrid Electricity (kWh)
770 900 1050
Annual Cost Savings
$540 $400 $280
Equivalent Panels 9 6 4Payback Period 7 7 6ROI 14% 14% 15%
700 kWh 1000 kWh 1300 kWh0
5
10
15
20
25
5.6kW4.2kW2.8kW
Payback
700 kWh 1000 kWh 1300 kWh0%
2%
4%
6%
8%
10%
12%
14%
16%
5.6 kW4.2 kW2.8 kW
Return on Investment
Recommendations
Push Strategy
◦Module Manufacturer
◦Local Installers
Strategic Recommendations
Module Manufacturers◦Increase efficiency ◦Increase TAM◦Ingredient branding
Local Installers ◦Increase service line◦Backward and forward◦Support
Strategic Recommendation
Recap:◦ International focus U.S., Germany and Spain, Japan
◦B2B: Q-Cells, Sharp, Suntech Power
◦Price ceiling $175
Strategic Recommendation
Questions