The solar utility business plan is a very specific breed of document. Solar energy may be all the rage, but selling the concept in a business plan document isn't as easy as using the buzzword “green†and talking about peak oil and rising energy costs. To be done well, solar utility business plans need to address the market need not just on the national stage, but locally. If the ultimate plan is subsidizing regional utility production or selling power back to the grid, then the business plan needs to speak to those specific scenarios. And unlike most business concepts, solar power is a field where government comes heavily into play. There are often tax incentives or energy credits in the mix, and if these are applicable to your venture, they need to be factored into the financial model. Also, the marketing mix you outline should speak to the difference between required off-takers and the parties you have to advertise to in order to make sales. A few other considerations include:
(1) Can you furnish specifications, as appropriate, for the products and services section of the business plan?
(2) What does your executive team bring to the table, and where are your management gaps, if any?
(3) What solar companies do you compete with? Bear in mind that these could be regional or national – you could be positioned against a utility many states away depending on your sales channels.
(4) In your five-year pro forma, can you highlight the impact of reduced sales, if in fact you cannot achieve your sales benchmarks? Some investors will require this sensitivity analysis.
(5) For the investor return, what ratios do you use to justify the shares you're willing to relinquish? Can are the upper and lower bounds for negotiation?
MasterPlans.com has worked with a wide range of green technology companies in the preparation of formal business plans. From thin film solar panel production to biomass gasification plants to turbine monitoring devices, we've seen it all. Our team of business planning professionals has written more than 8,000 business plans since 2002. We have a unique expertise into green and Cleantech plans, including solar power and solar utility proposals. Call a consultant at 877-453-2011 to learn more about how our organization can work with yours.
