BUSINESS PLAN

PROJECT ON SOLAR INVERTER

SUBMITTED TO:
DR. RITESH SRIVASTAVA

SUBMITTED BY:
DEVESH ANANAD CHAURASIA
ROLL NO. FS-820
SECTION- E
EMAIL ID: deveshchaurasia18@gmail.com
 VISION
To make India fully electrified. 65% of India is residing in villages where
they are facing severe electric problem, We want to help them to get rid of
this problem and make villages fully electrified.

MISSION

We want to take our organization on the top of solar energy. Make India
electric cut free, Get subsidy on my product and Specially light up the rural
areas. We also trying to help out the people in terms of cost effectiveness.
 ACKNOWLEDGEMENT

A mammoth project of this nature calls for intellectual nourishment,

professional help, and encouragement from many quarters. I would like to
express my gratitude to: Dr. Ritesh Srivastava

• The pioneer in the field of management and cost accounting who

have shaped my understanding through their rich and varied
contributions,
• Who have helped me a lot in completion of this project and for
giving their new ideas,
• Who have encouraged me for this project, I just gave him a outline
about the idea, He assured me for help in completion of the project.

So without Ritesh Sir it’s not possible to proceed on this project, He has
helped me whenever I asked for help to him and has guided me on every
step of this project.

Devesh Anand Chaurasia

 Contents

➢ Product Name
➢ Product Brand
➢ Objective
➢ Introduction
➢ Why go solar
➢ Benefits of solar energy
➢ Solar Power inverter
➢ Eco-friendliness
➢ How is solar power electricity produced
➢ 4 key parts needed for solar power electricity
➢ Future of the product
➢ Materials Required for making a solar inverter
➢ Make or buy Decision
➢ Requirements for start the business
➢ Swot Analysis
➢ Marketing Strategy
➢ Cost Sheet
➢ Analysis
➢ Conclusion
Product Name: Solar operated Inverter

Product Brand: Sun DC (sun direct charge)

Objective: The objective of Business Plan is to resolve the problem of

electricity . As we are facing a severe problem of electricity cut, even we
have inverter. But what a inverter can do if the source from where inverter
get charged (electricity) is not there. So my product will be proved as a
remedy for this problem. The purpose is following:-

1: Use of renewal source of energy,

2: To save electricity,

3: To give a better facility,

4: To provide electricity where there is no power,

5: To get rid from electric cut,

6: To control the cost,

7: To make it affordable,

8: Very useful for rural area,

9: Eco friendly

10: No noise pollution

INTRODUCTION

Some of the most significant recent technological advances are in the area
of inverters, with several firms racing to market with micro-inverters,
devices that convert direct current (DC) from a single solar module (panel)
to alternating current (AC).Solar Inverter is alternate source of electricity.
As it’s a renewable source of energy, so it will never be end. Solar Inverter is
cost-effective and will also help us to get rid of from huge amount of
electricity bill. It will work as a boon for those areas where people are
facing long time electricity cut like in rural areas. It will also be proved as
an invention where there is no power supply.
It’s Eco friendly, as it does’t release any type of harmful gas. By using it we
can save the electricity which is limited resource for us. So my product will
be a remedy to electricity cut.

Why Go Solar?
1 Solar Power is practical and economical
2 How much their electricity system saves them on monthly bill.
3 Taking advantage of financing incentives.
4 Using solar pool heaters to heat water for their pools saves money.
And these are just a few examples!

Renewable energy is good for the Environment:

All the solar power you use is free, after the initial purchase cost of your
electricity system. Twenty years from now, the energy you are collecting by
your own home power system will still be free.
 Benefits of Solar Energy:

1) We never have to worry about running out of sunlight. The sun is a

consistent power source meaning it is always going to be there every day.
2) Compared to fossil fuels which release greenhouses gases. Solar Panels
don't release toxins into the air.
3) Solar panels are extremely reliable. There are no moving parts so you
do not have to worry about replacing anything. The panels generate home
electricity for thousands of hours with no maintenance other than a clean.
4)Power panels make no noise while collecting the suns energy and no
other renewable energy or power source are completely silent.
5)Electricity generated from the sun is cheaper than buying it from the
power (electricity)company.
6)Start up cost is expensive but once you recover your outlay, the panels
start making you a profit and a return on your investment.
7) Solar panel home systems have a huge variety of sizes and shapes.
There is an entry point into renewable energy and solar electricity systems
for everyone from top range that cost tens of thousands of dollars to a
couple of hundred or a cheaper opinion is homemade solar panels.
8) Live off-the-grid and never pay another power bill. You are not
required to connect to the power grid. You can be completely self-sufficient.
9)Large home panel systems generate excess electricity and you can sell
this excess electricity back to the power companies.
 10) Government tax credits. Most governments will provide some kind of
tax credit or incentive for people purchasing home solar energy systems.

Solar Power Inverter

In most home solar systems, the solar panels are used to charge
batteries and the batteries are what supply power to the appliances in
the house. This is done in order to have power available at night when
the sun isn’t shining. Both solar panels and batteries provide Direct
Current (DC) power. The power grid, the electric sockets in your
house and all of the appliance that plug into the sockets use
Alternating Current (AC). A solar power inverter converts the DC
power from the batteries into the AC power that your appliances need.

There are two main types of solar power inverter: Modified Sine Wave
(MSW) and True Sine Wave (TSW). Modified Sine Wave inverters are
simpler and turn DC into rough 120v 60 cycle AC, but do not produce
a true sine wave. Some appliances, like computers, immediately turn
AC power into DC, and so work perfectly fine with MSW inverters.
Other appliances, however, don’t work well with MSW. Audio
equipment, for example, can produce an annoying hum when used
with MSW inverters. TSW inverters are more expensive, but for home
use, they are almost always a better choice than MSW inverters.

There are a number of things you should do to ensure your inverter

stays in good condition. The power inverter should be as close to your
batteries as possible, but not in a box with the batteries. Make sure you
use adequately sized wire to connect the batteries to the inverter.
Check the instructions for your inverter to see how large. You should
also make sure a fuse on all wires from and to the inverter, especially
the one from the batteries. Finally, don’t allow the inverter to get wet
or too hot. (This pretty much applies to anything electrical.)

There are two main problems you might encounter with a solar power
inverter. The first is roof interference. All inverters broadcast radio
noise when they are running. For any kind of receiver, you will at a
minimum have to place the receiver as far away from the inverter as
possible. One solution for radios can be to use a battery powered radio
with rechargeable batteries and recharge the batteries from your solar
system.

The other potential problem is something you probably don’t usually

even think of – phantom loads. Many devices like TVs, anything with a
remote or almost anything with a wall wart power supply uses a small
amount of electricity, even when it is turned off. The problem isn’t just
that these devices waste a lot of precious energy from your solar
system, but that they keep your inverter from going to sleep. Many
inverters enter a low power sleep mode if there is no power being
drawn, but these devices continue to draw power, even when they are
off.

Because of this, the inverter will never enter this low power state. The
solution in most cases is to use a power strip with a mechanical on/off
switch. When the power strip is turned off, anything plugged into the
power strip will really be off and drawing no power.
 Eco-friendliness:

Solar Power electricity installations are gaining moment all over the
world. Stock of fossil fuelis fast depleting and alternate natural energy
solutions, like solar power electricity is becoming popular.

Natural energy solutions are environment friendly with little or no air

pollution and no emissions or greenhouse effects. Solar power
electricity production is also free of noise pollution.

How is solar power electricity produced?

1. It is produced by converting light from the sun into electrical energy

using a silicon wafer / semiconductor called a photovoltaic cell. This
technology is simple and easy to maintain.

4 Key parts Needed for Solar Power Electricity:

A typical residential system would have 4 key parts:

1)Solar Panel Array

2)Charging Controller

3)Batteries

4)Inverter

1) Solar Panel array: Solar panel Array is made up of several solar

panels. A series of photovoltaic cells working in unison in a module
form the solar panel. The solar panel array needs to be exposed to
sunlight , and the array is normally installed on rooftops where
sunlight exposure is more. The solar array converts light energy into
solar power electricity. Electrical energy in the form of 12 volts(DC) is
produced by the solar panel array.

2) Charging Controller: The charging controller is the device

that controls the amount of charging for the batteries. Batteries should
not be overcharged neither should they be undercharged. This device
which sits between the solar panel array and the battery bank,controls
the charging.
3) Batteries: These are deep cycle batteries used for storage of solar
power electricity produced by the solar panel array. The 12 volts(DC)
produced by the solar panel array is stored in the batteries. The
charging controller regulates charging, thus extending the life of these
batteries.

4) Inverter: The output from batteries is 12 volts(DC) and can run

only devices that work on 12 volts(DC). Most of the appliances work
on 110/220 volts(AC). Hence 12 volts(DC) needs to be converted into
110/220 volts(AC). The inverter does the job of converting 12
volts(DC) into 110/220 volts (AC).

Along with these four main components several other hardware

accessories , wires and connectors would be required to have the
complete solar power electricity system functional.

Future of the product

 The solar PV industry is now a fast moving and hugely complex
industry. Over the space of a decade it has moved from a compact tiny
industry supporting a few slow moving technology tracks to one with
well over 30 parallel technology tracks, some 300 research
laboratories and universities pushing the very boundaries of PV
science and over 10,000 companies engaged in all aspects of the solar
PV value chain. The PV market will be in a critical growth phase
during the next5-10 years, continuing to require significant policy
and market support to achieve the overall cost and performance
required for a sustainable market. If small manufacturers have more
difficulty meeting the reliability requirements of the market and
cannot afford to provide adequate after-sales service, it could hurt the
PV industry as a whole (inadequately performing inverters will hurt
the industry).While some consolidation in the inverter business should
be expected, the benefits of competition and innovation provided by
the smaller companies are likely to be important to the industry at its
current, early stage of development.

Materials Required for making a solar inverter:

For making a solar inverter a number of materials are requires, some

of them as follows:

1) Cabinet

2) Capacitor
 3) Electrical Connectors

4) Power semiconductor

5) Analog display

6) Charging controller

7) Electrical Fuse

8) Circuits

9) AC-DC converter

10) Charge connectors

Make or Buy Decision: Now we have to decide whether to make

the components in the factory or buy it from the market?
For this we will apply make or buy decision, which help us to choose
optimal solution that is which will be cheaper between making and buying.
As the company is new and starting its business on an small scale so it
would be fusible for the company to buy the components from the market
and assemble it in the factory and make the inverter.
 Requirements for start the business

1)Land for Production and office: We first need a place

where we will start the production. We can Either purchase it
or take it on rent basis. 200 square feet in Greater Noida on
rent.
2)Machinery: Then we need certain machinery which will be
required for production. Here as we are buying the material from
outside so no big plants and machines will be required. The
requirement will be of small equipments and tools which will be
used while assembling the components to make the inverter.
3) Materials: The next requirement will be the Material. What are
the materials required I have already explained above.
4)Labor: Now we required to hire labor. The labor will be of three
categories which are:
Skilled labor
Semi skilled labor
Unskilled labor.
1) Skilled labor- 10
2) Semi skilled labor- 20
3) unskilled labor- 10
5) Website: We also need a website for giving all the information of
the company on internet.
1) Land rent: 100000 per month
(Rs. 50000 for factory and 50000 for office)
2) Machinery: wire binder rs.45000,
Wiring kit rs.15000
Fitting tools rs. 30000
Wire Insulator rs. 10000
3) Materials:
Cabinet: Rs. 1500 per piece
Capacitor: Rs. 1000 per piece
Electrical Connectors: Rs. 100 per piece
Power semiconductor: Rs. 500 per piece
Analog Display: Rs. 350 per piece
Charging controller: Rs. 2000 per piece
Electric fuse: Rs. 50 per piece
Circuits Board: 2500 per piece
Charge connector: Rs. 1000 per piece
Fix assets: Wire binder and insulator Rs. 500000
Automatic screw fitter Rs. 200000
Company’s Logo maker Rs. 100000
Delivery van-2 Rs.1000000
18,00,000
 SWOT ANALYSIS

Strength: The product will be acceptable by the mass market. As the

product is Eco friendly and cost-effective it will create an image. It will help
to Rural people to get continuous electricity.

Weakness: The Product will lag behind because of its newness in the
market. Because it is newly launched in the market so it will be
conventional model. As it will get older it will become flawless and fully
service supported.

Opportunities: The product will rapidly cover the market because it is a

new product and there are no competitor in the market. The second thing is
that government can provide subsidy on it to make it affordable for rural
people. We can also collaborate with the government.

Threats: as the industry will grow competitors will be there. And may be
the competitor will launch modified version of the same product which
might be better that my product.
Marketing Strategy
The marketing strategy will cover distribution channel, advertisement,
Segmentation, targeting, Positioning etc. For distribution channel I will
contact to the wholesaler and retailer. We will also try to find the tenders of
the company. So that we can increase our selling as well as production.
 Cost Sheet
Particulars Amount Amount

Materials Consumed 9000 4500000

Direct Wages (Labor) 500 250000

Prime cost (1) 9500 4750000

Add :- Factory Over Heads:
Factory Rent 100 50000
Factory Power 60 30000
Indirect Material 80 40000
Indirect Wages 10 5000
Supervisor Salary 50 25000
Drawing Office Salary 40 20000
Factory Insurance 200 100000
Factory Asset Depreciation 10 5000
Factory/Work cost (2) 10050 5025000
Add:- Office and Administration charges:-
Office Rent 100 50000
General Charges 40 20000
Counting house Salary 10 5000
Stationary charges 20 10000
Managers salary 60 30000
Electricity charges 20 10000
Office cost (3) 10300 5150000
Add:- Selling and Distribution Charges:-
Delivery van maintenance 10 5000
Sales man salary 30 15000
Website Expenses 20 10000
Advertisement 40 20000
Delivery man expenses 20 10000
Sales Tax 200 100000

Cost of Sales (4) 10620 5310000

Profit (balancing figure) 1380 690000
Sales (5) 12000 6000000
 Analysis

1) For getting profit of rs.1380 company will have to pay its product in
rs. 12000 per piece.
2) Company is getting 13% profit on cost which is good for the company
because company is in initial stage.
3) If company gets any order for more than rs.10620 per piece it should
accept the order because company is not facing any loss.
4) Company should reduce its selling price because company and
product both is new in the market.
5) Company should not worried about its margin first it should be
worried about its market capitalization and market share, once it
captures the market he can increase the price.

CONCLUSION
My product will be very cost effective and Eco friendly. As it is in initial
stage so the return on investment would not be that high as a well
established company get but as it will become older its market share and
image will increase. It may also get subsidy from the government.