Turquoise Solar Solutions, Inc. Founders Daniel Draven—CEO/CFO Bunmi Akinnifesi—VP of Marketing Saheed Bello--COO John Roland—VP of Sales

Problem to be solved The energy industry in the US has a huge potential for growth, development and opportunities for investment and policy makers like the Obama Administration are doing everything possible to ensure the sector drives the economy. The basic economics of energy and developments in technology are making the area of solar energy system Installation structurally attractive. Well known investors like Warren Buffet have made long term investments in the power sector.

Problem to be solved The current trend is that a lot more individuals, corporations and governments are becoming more environmentally conscious and striving towards green solutions. Solar panels and solutions are now becoming more affordable due to the continuous research and innovations going on in the industry as well as the government subsidies available that reduces the startup cost of purchase of solar panels. Every year more companies are committing to transitioning from fossil fuels to renewal able energy.

Solution Turquoise Solar Energy Solutions is established to be financially profitable, technically feasible and good for investors, customers, staff, the community at large and the environment. TSS has been positioned to grow in this segment of the energy market. The objective is for Turquoise Solar Energy System installations to be one of the leading providers of solar installation and repairs, ensure profitability and provide investors low risk and safe investment opportunity and most importantly customers get a good return for their money. Mission Statement: To be the first choice in installation and repairs of solar panels and related solar electricity equipment among homeowners, developers, and property managers.

Opportunity & Target Market Our target market is Georgia. With an investment of US$79 million in 2014 alone… Georgia stands out as the fastest growing solar market in the US. Georgia ranks 15 th in installed solar capacity in the US.

Opportunity & Target Market The consumers of solar electricity in Georgia are primarily: Home owners Small firms Large firms that have huge electricity requirements.

Technology Turquoise Solar Energy Solutions aims to avoid much of the risk associated with energy costs and economic expansion/contraction. Via three steps: (1) we don’t produce the cells used. (2) we broker for our customers for a set (small) markup. (3) our marketing heavily appeals to environmental conscientiousness combined with cost savings as opposed to one or the other.

Competition At present, there are more than 173 solar companies engaged in all parts of the solar electricity value chain in Georgia. These companies have over 2,900 employees engaged in various activities in the course of serving the market. Some of the firms engaged in the solar electricity trade in the Georgia area include: Georgia Power, Southern View Energy, and Turnsol Energy.

Competition Growing demand for solar power still leaves a large market unserved. Federal and state laws help incentivize electricity consumers to install photovoltaic systems.

Marketing & Sales TSS plans to install 600 units monthly at the rate of $360/panel. Our client base includes residents and business firms within the United States. Marketing Budget of $20,000.

Marketing & Sales Turquoise Solar Systems will target Home owners that earn above USD50,000 per annum Small firms with an annual turnover of USD100,000 and above Large firms that require huge solar installations like solar farms.

Marketing & Sales TSS aims to provide one-stop shopping for customers who want to increase their renewable energy consumption. Our product mix will offer several sizes and ranges of solar cells, from $150 single panels to $20,000 arrays as the customer’s power needs and budget constraints allows. Because we are free to contract from every manufacturer on the market, we can create a customized package, purchase the hardware, and install it for our customers regardless of maker or origin. We will offer discounts during the winter to try to shift demand from spiking in the leadup to summer months (when solar cells will produce the most immediate benefit) and capitalize on the tax credit window of December-January.

Marketing & Sales Sales Tactics The residential team will review newspapers and trade journals for new home purchases (often new buyers have a budget set aside for improvements that can be applied to solar energy cells). In print, we will take out half-page advertisements in local newspapers in order to reach a broader audience. Online, we will pursue keyword advertising with search engines for customers searching for information on “solar cells” “renewable energy” and “home solar”, in addition to banner and sidebar ads on news articles concerning rising solar power adoption.

Marketing & Sales Sales Tactics The Corporate team will reach out to local firms’ Facilities Management teams to determine if they would be interested in the cost savings involved in renewable energy, as well as those same companies’ PR teams to see if they would find value in the positive sustainability branding. Similarly to the residential team, they will also reach out to the buys of large property transactions to see if there is an improvement budget that could be well matched with solar energy installations.

Management Team Daniel Draven will serve as dual CEO/CFO. Bunmi Akinnifesi heads up the marketing and advertising program. John Roland leads the sales teams. Saheed Bello manages the installers, inventory, and company equipment as Chief Operating Officer.

Management Team Board of Directors The board will include the four founders: Daniel Draven, Saheed Bello, Bunmi Akinnifesi, and John Roland; with three seats available to debt and equity investors. While the founders intend to retain majority control, significant influence will be yielded to financing partners.

Financial Projections TSS’s revenue will come from two sources: one, an 8% markup on the hardware panel costs themselves; second, an installation fee for placing the product within the home’s electric system. The installation fee will be based on an hourly rate (currently set at $60/hour), and the estimated number of hours required to complete a given installation (currently projected at 6 hours).

Financial Projections This protects the company from variability in hardware prices by adopting transparent pass-through pricing. We expect that 85% of our installation customers will purchase equipment from us, however 15% will acquire their own solar panels (possibly after expecting to be able to install it themselves and being overly optimistic), and our revenue will come only from installation services.

Financial Projections Fixed costs will include office rent estimated at $9,000/month, licensing and liability insurance estimated at $12,000/month, and $60,000/month in employee payroll. Variable costs will be the hardware required for the job (cost passed through to customers), installer hourly rates, and fuel for company vehicles. Additionally, the company will put $20,000 towards marketing its services.

Turquose Solar Solutions – Break Even Analysis

Current Status Source of capital is seed money of $50,000 from the owners. We expect a monthly growth rate of 2 percent. We expect a total revenue of $ $390,609 by the end of the first year.

Financing Sought Startup costs consist of $198,000 for an opening inventory of solar panels, $120,000 for company vehicles and installation hardware, and a reserve of $142,000 to cover rent and liability until we reach our volume target plus an additional $100K general cushion. This, assuming an interest rate of 4.5% and a term of 60 months, will require $7,661/month to service.

Financing Sought The total of all these costs equals $108,661/month, and the profit per hour of work is $37.50 ($60 gross – $20 for installer wage - $2.50 in hardware costs) as a result will require 2,898 hours at our expected rate of $60/hr. If we expect each installation to take 6 hours, this requires 483 installations per month to cover fixed costs (this ignores potential hardware revenue and is based entirely on installation revenue).

Pro-Forma, First Six Months

Conclusion Open for Questions