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Smart Solar UPS

Business Plan By

Hafiz Muhammad Arbab Aslam 041
Nauman Ul Haque 101
Saqib Fayyaz 122
Waleed Afzal 078








Bachelors in Electrical Engineering (BEE)


School of Electrical Engineering and Computer Sciences
National University of Sciences and Technology
H-12, Islamabad, Pakistan
(2014)
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IN THE NAME OF ALLAH,

THE MOST BENEFICIENT

THE MOST MERCIFUL












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Table of Contents:
Executive Summary ...................................................................................................................................... 4
Business Description ................................................................................................................................... 6
History: ...................................................................................................................................................... 6
Market:...................................................................................................................................................... 7
Kind of Business: ....................................................................................................................................... 7
Product and Services: ................................................................................................................................ 7
Target Problem: ........................................................................................................................................ 7
Financial Status: ........................................................................................................................................ 8
Management Team ..................................................................................................................................... 10
Financial Summary .................................................................................................................................... 11
Achievements and Milestones .................................................................................................................. 12















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Executive Summary
Currently, most of the electricity produced in Pakistan and majority of the countries around the
world is through fossil fuels (oil, coal, natural gas etc.). The electricity produced by these fossil
fuels not only have high production price but burning fossil fuels also causes environmental
pollution also. Solar energy is not only cheap but it also has no environmental hazards. To get
maximum energy from solar panels maximum power point tracking is performed (MPPT). This
energy is stored in batteries using efficient battery charging. Smart UPS then converts this DC
power into AC power to be utilized in most of the appliances in homes and offices.
Most of the middle class, upper class families and small offices can get great benefit from it
especially in summer season when there is shortage of electric power supply from WAPDA.
Also they would be able to operate two fans and 2 energy savers directly in the day time even if
they dont use any battery bank for storage. If they use battery bank they will be able to get
power in the night as well. The presently available solar products in market have all the given
properties but two different devices need to be purchased for complete operation. Smart Solar
UPS provides all the things in a single package and at a cost of much less than the other
competitors.
Smart Solar UPS tends to solve all the problems encountered in conventional UPS used generally
at homes and offices. Firstly, the conventional UPS provides square or modified sine wave
output having harmonics which decrease the efficiency as well as the life of devices operated.
Smart UPS will provide sinusoidal output with very less harmonic distortion. Secondly, the
conventional UPS does not implement efficient battery charging scheme which decreases the
battery life. Smart UPS will implement efficient switch mode battery charging which prolongs
the battery life and protects the battery from overcharging and over discharging which decreases
the battery life. Thirdly, the conventional UPS does not perform voltage regulation i.e. if the
heavy load is connected with it, the voltage of the UPS droops. Smart UPS will provide the
voltage regulation under varying loads.
There is a lot of profit potential for Solar products overall. If the solar products are properly
marketed, then a large number of solar products can be sold and profit can be generated easily.
Peoples are generally reluctant in buying solar products because they actually are unaware of the
products life cycle and they even dont know that they can save a lot of their money by using
these products.
The potential risk for the failure of the business is missing the right time and right place. Load
shedding becomes a bigger challenge in summers due to which a lot of peoples especially
peoples of such areas which face long hours of load shedding are in search of good solution.
Proper marketing of the products and good after sales services can make the product as well as
company an excellent competitor in the market.
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The prototype so far developed works fine and size is also reasonable. The size can further be
reduced and quality can further be enhanced but it will increase cost for small scale production.
For large scale production it will not only reduce the cost but also increase the quality of the
product and will give a professional look. The professional product can be obtained in either of
two ways. Firstly, by getting the product manufactured from some other company which
obviously will decrease the profit margin. Secondly, the manufacturing machines can be
purchased which require a funding of approximately $10000. But initially, the hand made
products will work fine. But if the demand of the product increases then we can go for product to
be manufactured by some other company.
It would be a joint venture. A team of 5 members will be continuing this project initially in
Rawalpindi. If the product is successful then other big cities can be targeted. 4 members of the
team are electrical engineers who will be improving the product and also manage the
manufacturing assembly and other production related issues. 1 team member will be from
Business administration background so that his/her business related skills can be utilized
effectively in flourishing the business.











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Business Description
History:
With the recent rise in energy costs many people have been looking to alternative sources of
energy. One of the greatest energy sources (sun) is readily available for the taking. We just need
to be able to harness its power. Below is a brief history of how solar power came to be and its
development.
The history of photovoltaic energy (aka. solar cells) started way back in 1876. William Grylls
Adams along with a student of his, Richard Day, discovered that when selenium was exposed to
light, it produced electricity. An electricity expert, Werner von Siemens, stated that the discovery
was "scientifically of the most far-reaching importance". The selenium cells were not efficient,
but it was proved that light, without heat or moving parts, could be converted into electricity.
In 1953, Calvin Fuller, Gerald Pearson, and Daryl Chapin, discovered the silicon solar cell. This
cell actually produced enough electricity and was efficient enough to run small electrical devices.
The New York Times stated that this discovery was "the beginning of a new era, leading
eventually to the realization of harnessing the almost limitless energy of the sun for the uses of
civilization."
The year is 1956, and the first solar cells are available commercially. The cost however is far
from the reach of everyday people. At $300 for a 1 watt solar cell, the expense was far beyond
anyone's means. 1956 started showing us the first solar cells used in toys and radios. These
novelty items were the first item to have solar cells available to consumers.
In the early 1970's a way to lower to cost of solar cells was discovered. This brought the price
down from $100 per watt to around $20 per watt. This research was spearheaded by Exxon. Most
off-shore oil rigs used the solar cells to power the waning lights on the top of the rigs.
The period from the 1970's to the 1990's saw quite a change in the usage of solar cells. They
began showing up on railroad crossings, in remote places to power homes, Australia used solar
cells in their microwave towers to expand their telecommunication capabilities. Even desert
regions saw solar power bring water to the soil where line fed power was not an option!
Today we see solar cells in a wide variety of places. You may see solar powered cars. There is
even a solar powered aircraft that has flown higher than any other aircraft with the exception of
the Blackbird. With the cost of solar cells well within everyone's budget, solar power has never
looked so tempting. This is the reason why it is becoming so popular.
Recently new technology has given us screen printed solar cells, and a solar fabric that can be
used to side a house, even solar shingles that install on our roofs. International markets have
opened up and solar panel manufacturers are now playing a key role in the solar power industry.
The cost of solar panels has also decreased significantly. In Pakistan the cost of good quality
Solar Panels is Rs. 130/Watt. The cost is further decreasing with the improvement in
technologies and also the efficiency of solar panels is improving day by day.
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In Pakistan, the business of solar products is expanding day by day as lots of peoples have
realized the importance of Solar Energy. As the business is expanding, there is a lot of
competition in the market by different companies. But there is a lot of opportunity in this
business because it is expanding.
Market:
Most of the middle class and upper class families along with small offices and especially the
small shops can get great benefit from it especially in summer season when there is shortage of
electric power supply from WAPDA. They will not only save their cost in terms of bill but also
get continuous supply of electricity. They would be able to operate 2 fans and 2 energy savers
directly in the day time even if they dont use any battery bank for storage. If they use battery
bank they will be able to get power in the night as well.
Kind of Business:
Since the company aims to provide the solar products it will be a manufacturer kind of business.
The distinguishing feature will be the quality manufactured products and after sale services
provided by the company to gain the trust of the customers.
Product and Services:
Following products will be offered by the company:
Solar Charge Controller (Different current ratings 5A, 10A, 15A and 20A)
Sine Wave Inverter (500 VA, 1000VA, 1200VA and 1500VA)
Solar UPS (With all above reasonable combinations)
Following services will be provided by the company:
2 years warranty of Charge Controllers, Inverter and UPS
Installation of Solar System
Repairing of products
Up gradation of Solar System
Target Problem:
Smart Solar UPS tends to solve all the problems encountered in conventional UPS used generally
at homes and offices. Firstly, the conventional UPS provides square or modified sine wave
output having harmonics which decrease the efficiency as well as the life of devices operated.
Smart UPS will provide sinusoidal output with very less harmonic distortion. Secondly, the
conventional UPS does not implement efficient battery charging scheme which decreases the
battery life. Smart UPS will implement efficient switch mode battery charging which prolongs
the battery life and protects the battery from overcharging and over discharging which decreases
the battery life. Thirdly, the conventional UPS does not perform voltage regulation i.e. if the
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heavy load is connected with it, the voltage of the UPS droops. Smart UPS will provide the
voltage regulation under varying loads.
Financial Status:
In the beginning we will need a lease from a bank or we can wait till few of our team members
get job and then we can start our business. Second option is less tempting as it can take quite a
long and our potential profit making time can get out of hands. Since the time is right we can
take loan from bank or we can also lend the money.
.




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Operations Plan
The operation of company will be based on a small store situated in Rawalpindi. There will be a
sales agent who will guide the customers about different products and our services. The
marketing plan will be devised so as to attract as many customers as possible, marketing plan
will be improved by our member having a background of Business Administration. The others
members will be developers as well as contributors to all the basic operations of the business.
Profit will be divided among the founders equally. The store will be rented for one year with a
rent of Rs. 120,000. The furniture and basic equipment for testing the products will cost about
Rs. 100,000. So in order to achieve the break-even point with a cost of Rs. 12,000 per unit we
will need to sell at-least 80 units. This will give as a profit of Rs. 320,000 out of which Rs.
220,000 will be the direct cost. The rest will be for malfunctioned items and bills of electricity
and gas.
The salary of the sales agent will be fixed Rs. 10,000 and Rs. 200 will be given to him for selling
each product so that he may work with more zeal and zest. The developing and marketing team
will work in part time i.e. they will work in evening time and whole weekends. Since the product
is new in the market the potential customers will be more in the beginning therefore we will
develop few products in advance to cater for the need of customers in the beginning.












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Management Team
The management team includes four fresh graduate engineers and one fresh graduate
management personnel. All are very enthusiastic for taking this business to the peak and
developing the economy of themselves and also supporting the economy of Pakistan. The team is
fresh graduate so mostly none of us has a dream of starting a business initially therefore, we will
carry on this business by involving ourselves in it on part time bases i.e. weekends and evenings.
All members are very enthusiastic and none all of us has a firm belief that by working together
and keeping the quality of product as great as possible is the key to success of our business.
Quality and devotion are the things which can greatly flourish our business as no such product
exists in the market right now. All the team members believe that if this product is brought in the
market in the right time then there will be great demand of this product.
We are currently working how to further improve our product, its packing for professional look
and marketing strategy to start with. No doubt solar industry is flourishing but there are a lot of
competitors in the market. To compete with existing competitors and to establish a good name of
our company quality and pricing will play a key role. This is the reason why our members are
working on improving the quality of product and they are also looking for penetrating ways of
marketing.












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Financial Summary
Year wise Cost and Breakeven Analysis along with growth
Year Annual Funding (Rs.)
No. of Units for
Breakeven
Project coming in
City
2014-15 250,000 80 Rawalpindi
2015-16 200,000 70 Rawalpindi
2016-17 400,000 200 Lahore
2017-18 400,000 180 Lahore
2018-19 600,000 350 Multan
2019-20 500,000 300 Multan

Year wise Sales Target and Profit Analysis
Year
Annual Target
Sales (Units)
Annual Target (Profit in
Rupees) Including Cost
Net Profit (Excluding
Cost)
2014-15 150 600,000 350,000
2015-16 200 800,000 600,000
2016-17 300 1,200,000 800,000
2017-18 350 1,400,000 1,000,000
2018-19 400 1,600,000 1,000,000
2019-20 500 2,000,000 1,500,000








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Achievements and Milestones
Since no such product already exists in the market that converts solar energy directly to domestic
utilizable electrical energy. We have developed a prototype which converts solar energy directly
to electrical energy. But it needs certain improvements before we bring it into the market. The
milestone which we have achieved so far is that we have developed a solar UPS which converts
solar energy to light energy directly.
Our next milestone is the improvement of this product i.e. integration of grid with it. By
integration of grid we mean that if the Solar Panels are not generating enough power and
batteries need charging then the Solar UPS should extract power from WAPDA mains. But if the
Solar Panels are generating enough power then power should only be utilized from Solar Panels
and no power should be drawn from WAPDA mains.
After this integration of grid, we will look forward for dual system of charging i.e. Solar and grid
both. It will be variant of above system but it will be a new product. Also we well change the
system of extracting Power from Solar panels. We will upgrade it to a better and efficient system
that will increase more efficiency and will extract more power from solar panels.