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UaV Solar Inspection (USI)
Business Plan
August 7 2017
Michael Kavalchuk
1300 Pacific Street
San Bernardino, CA 92404
(508)-574-9893
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Table of Contents
I. Executive Summary ..................................................................................................................................3
II. Company Description ..............................................................................................................................4
III. Products & Services ................................................................................................................................6
IV. Marketing Plan ........................................................................................................................................9
V. Operational Plan ....................................................................................................................................14
VI. Management & Organization ..............................................................................................................15
VII. Financial Plan .......................................................................................................................................16
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I. Executive Summary
UaV Solar Inspection (USI) is a drone-based, thermal imaging inspection service provider for commercial solar
farms. The solar industry has maintained unprecedented growth in the past decade, and that growth is expected
to continue with estimates forecasting 300% growth in the next five years through 2022. However, rampant
growth is accompanied by issues in scalability. The most notable concerns that stem from scalability are quality
assurance, efficient implementation, and the cost of maintenance. USI provides thermal imaging analysis to quickly
detect malfunctioning solar panels, which effectually reduces operational costs, provides warranty insurance,
quality assurance, and preventative maintenance.
USI aims to become the premier provider for drone-based thermal imaging services within the Southern
California area through qualified, friendly, and reliable service. USI plans to acquire 1 job per week in year 1, and
establish growth of 25% over the next three years. Ideal customers are solar farms, or solar groups that operate
solar panel facilities with capacity of 1 megawatt or more, and are located within 200 miles of San Bernardino
California.
USI is different from the competition because it will be the only drone inspection company within the area that
has thermographic analysis certifications and can deliver accurate reports on premises. In combination with
qualified operators, USI will also highlight timely, friendly, and reliable services.
Michael Kavalchuk, owner and chief operating officer has experience in simplifying business processes, is an
advocate for green energy and will work relentlessly to establish USI as a leader in the solar power industry.
USI will look to become profitable in early as year 2. This is due to minimal overhead costs that are to be
incurred and also because the greatest cost in establishing the business will be funding the equipment. The
continued growth in the solar industry has led to a greater need to address quality concerns, quickly catch defects
to maximize output and protect the entire grid from failures; Greater need for such services will prove to be
integral in acquiring new clients.
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II. Company Description
1. Company mission statement
UaV Solar Inspection slashes operational costs by providing an efficient way to monitor and identify faulty
cells in your solar panel facility.
2. Company philosophy and vision
a. UaV Solar Inspection is built upon supporting a better earth and environment by empowering
innovation and driving costs down for solar energy facilities.
b. UaV Solar Inspection aims to become the premier thermal imaging inspection service for Solar
Farms by fostering partnerships with the biggest solar panel facilities in California.
3. Company goals
USI will strive to acquire 52 jobs over the first year, one per week, and then focus on increasing growth
by 25% over the next few years. USI will network extensively to become a mainstay within the
southwestern California area, and to become a leader for best thermal imaging practices within the solar
industry.
4. Target market
USI’s target market will consist of businesses that operate and maintain mid to large scale solar panels.
USI will focus its efforts specifically on businesses within the Southwest California sunbelt.
5. Industry
The solar industry is booming, and is constantly searching for ways to reduce operational inefficiencies,
and also drive down costs. The industry outlook is extremely positive for the coming decades, which
means innovation will continue to present itself in a variety of ways. Companies that own, lease, or utilize
their solar panels may look towards providing this thermal imaging service themselves, or use other forms
of analytics to determine when their panels are not operating to their full capacity. USI will continue to
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compete by continuing to offer fully qualified service and extensive thermography analysis to most
accurately gauge issues.
6. Legal structure
UaV Solar Inspection will be registered as a Limited Liability Corporation in the state of California. The
establishment of an LLC will be completed in order to protect the personal assets of the founder.
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III. Products & Services
1. Products and Services:
UaV Solar inspection provides infrared surveillance on solar panels to quickly detect faulty solar
cells. USI will visit the client, conduct the flight and capture of footage, analyze results, and provide a
written report of the inspection to the operating manager of the solar farm. USI will offer contractual
or ad-hoc inspection services to the client with efficient operations, timely responses, and superior
attention to detail.
USI utilizes a top of the line, DJI Inspire 2 drone equipped with a Zenmuse XT FLIR optics. The
drone itself has a 7 KM flight range, magnesium aluminum composite shell, and built-in obstacle
avoidance. The camera has multiple shooting modes, easy mount features, pixel pitch at 17
micrometers, an NEdT (Noise Equivalent Different Temperature) sensitivity of <50 mK at f/1.0 among
other features. The drone and camera combination will provide efficient and accurate inspection
services.
2. The Problem:
Any with any sort of mechanical or electrical equipment, Solar panels require quality assurance,
maintenance and troubleshooting to ensure that they are maximizing their utility. Per the New York
Times, “There are no industrywide figures about defective solar panels. And when defects are
discovered, confidentiality agreements often keep the manufacturer’s identity secret, making
accountability in the industry all the more difficult.” Risks other than manufacturer defects can include
Equipment 1 Equipment 2
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improper installation, falling debris, water damage, or other natural disasters. Regular inspections
provide preventative maintenance, quality assurance, and ensures warranty contracts.
Typical costs for a solar maintenance technician can reach $50 or higher per hour, and a solar
farm of at least 1 acre can require up to 30-40 inspection hours. The cost of inspection increases
linearly with the size of the solar farm. This means inspections can be extremely time consuming and
costly.
Preventative Maintenance is essential to ensure minimal downtime of solar panels. Thermal
imaging can easily detect minute differences in heat signatures in cells, which makes finding defects
important before they become catastrophic breakdowns. As seen in the pictures below, solar panels
should display a uniform color across each cell if they are functioning properly, and discrepancies
indicate malfunctioning cells. Quality Assurance is important to verify that the solar panels are
functioning properly; When they are not generating as much energy as they could be, it is essentially
losing money for the company. As many solar panels are installed under longer term warranties, if
solar panels are defective the companies that own them often do not have to pay to replace them.
Verifying that the solar panels are functioning properly is a minimal cost compared to replacing the
panels in full if they become damaged after the warranty expires.
USI is different than other drone inspection services because we utilize top of the line equipment,
utilize certifications in thermography and FAA guidelines, and provide a fully insured service to
protect your equipment in the event of a crash.
Functioning Solar Panel in Heatmap 1 Faulty Solar Panel 1
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3. Proprietary Features
USI services will have FAA and Thermography certifications in order to ensure the safest flight
operation, and accurate thermal image analysis. Our prices will always beat the competition while also
maintaining exceptional service capabilities.
4. Pricing
The pricing for USI services will vary depending on the job. The normal rate will be in the low to mid-
range for services at $250 per square acre inspected. To gain customers, I will offer contracted
agreements for regularly scheduled inspections, rather than a one-off inspection, this will be in attempt to
generate recurring revenue and establish a mutually beneficial relationship. Due to the fact that USI is a
service-based business, the profit margin will be low at first, but after primary costs have been recouped it
could soar to 50-75%.
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IV. Marketing Plan
1. Market research
A. Primary Research
USI conducted a survey from 42 individuals who work within the solar industry, ranging from positions within
engineering, to project management, to sales. The geographic location of the respondents ranged varied within
United States, with results fielded from professionals located in California, to Massachusetts. The main takeaway
from the primary research that was conducted was the
following:
• Majority of the respondents were involved with
commercial solar operation in some capacity
• 50% of respondents indicated that they currently use or
plan to use thermal imaging inspection services for their
solar panels, as seen by the ‘Primary Research 1’ Figure.
• Solar panels in southwestern region of the United
States require more maintenance than their respective
farms in the Northeast, and are more apt to use this
service, as seen by the purple in ‘Primary Research 2’
figure.
• Regardless of geographic location, biggest challenges
that were highlighted by respondents included the
following:
o “Tools for remote troubleshooting of systems”
o “Inspections, I think this is a necessary evil”
o “Effort to troubleshoot ground faults (on rooftop systems) is substantial and wasteful but is not
reoccurring unless system was terribly built. “
o “Monitoring failure. Reliability can certainly be improved”
Primary Research 1
Primary Research 2
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The respondents in geographic locations that solar panels were more deployed more often faced greater
challenges in inspecting and maintaining their machines.
B. Secondary Research
The domestic solar industry is booming, according to the Solar Energy Industries Association, “The U.S. installed
14,800 megawatts (MW) of solar PV in 2016 to reach 42.4 gigawatts (GW) of total installed capacity, enough to
power 8.3 million American homes… the industry is poised to nearly triple over the next five years, surpassing
100 GW nationwide.” Improvements in technology have led to more efficient and cost effective panels, which
have contributed to the continued growth. Referring to Figure (I), the solar industry ranks first among energy
source growth, accounting for 39% of the total contribution in the past year. In 2011, Governor Jerry Brown of
California signed a mandate that order the state to acquire 33% of their energy from renewable resources. More
recently, the California state legislature signed a bill that increases the threshold of renewable energy to 50% by
2030, which will further boost the growth of the solar industry.
Per the heatmap of the United States in Figure (V), California is the number one state for prevalence of
the solar industry. California has 45% of the entire country’s capacity for solar generation. As of 2016, 18,296.4
MW or 18.29 GW of solar panels have been installed. A realistic estimate for USI would be to capture .25% of
the existing market, which equals 45 MW. In the next 5 years, the state is expected to add 14,180 MW to existing
infrastructure. The rampant growth in solar panel production and installation commands a higher need for quality
assurance inspections. The New York Times notes that “There are no industrywide figures about defective solar
panels. And when defects are discovered, confidentiality agreements often keep the manufacturer’s identity
secret”. Which further necessitates solar panel owners to be vigilant in frequently inspecting their equipment.
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Figure 1
Figure 2
2. Barriers to entry
The Drone Inspection Industry has a low-medium barrier to entry. The initial cost of capital for the necessary
equipment is the biggest complication in entering the industry. The cost of the drone and camera itself make up
the majority, but with the addition of certifications / permits and associated travel costs, it adds up to be enough
so the market is not overpopulated. However, once the initial costs have been overcome, there is minimal
overhead required to keep the company producing revenue at a steady rate. Marketing costs will be minimal, as
they will be focused on in-person networking, word of mouth, and attending trade shows. It will also not be
difficult finding employees since I will be the sole operator, which will also minimize the salaries to be paid out.
3. Threats and opportunities
The solar industry is growing exponentially, which means that facility managers are open to making their
operations more efficient. Although the current government administration is not a heavy proponent for the solar
industry, states are taking the initiative to compensate. California has set a goal to provide 33% of its power from
renewable resources by 2020, and 50% by 2030. Government Regulation has consistently protected drone
operators, with minimal FAA regulations- However, there is the possibility that changes in FAA regulations may
Heatmap 1
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require additional permits or certifications necessary to pilot unmanned aerial vehicles. The increasing accessibility
to drone technologies, coupled with the explosion of growth in the solar industry presents numerous
opportunities across the market.
4. Target customer
USI’s target customer will be solar farms, data centers, and other groups of solar panel installations that have the
capacity of 1 MW or more. USI will focus on acquiring customers whose operations would receive the most value
from our service. Additionally, the geographic location of our clientele will be within 200 Miles from the
headquarters in San Bernardino, which will allow for quick response times in the event that clients require ad-hoc
inspections.
5. Key competitors
USI’s main competitors will be any company that offers drone inspection services. Main competitors that provide
drone inspection services within the Southern California area are:
• Up and Beyond Aerial
• AirCam Photography
• SoCal Infrared
• Air Reel Productions
• Great Lakes Drone Company
• Skyeography LLC
The aforementioned competitors vary in their services and offer a broad variety of inspection or videography
services. While some of the competitors offer thermographic inspection services, none of them display their
certified qualifications to perform such services, which means that they simply provide the footage to their client;
USI will differ from the competition by supplying footage, analysis, and recommendations for next steps.
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6. Marketing Plan
USI’s marketing efforts will be simplified, but tactical by relying on industry presence, solicitation, and word of
mouth. Online presence will consist solely of a website, to display basic information such as services rendered,
location, testimonials, and contact information. The website will utilize search engine optimization to land of the
first page of google. USI will also attend solar panel conferences and renewable energy trade shows in order to
establish a presence in the industry. The conferences will include the California Solar Power Expo, Intersolar
North America / CALSEIA Summerfest, and Solar Power International. The cost to attend said conferences varies,
but will provide an effective way to establish a market presence, and network with companies in the industry.
Another marketing tactic will be soliciting solar farm operational centers to initiate sales pitch. The sales pitch will
include a test flight, and providing thermographic report examples to highlight USI’s service.
7. Pricing
USI will work to provide their clientele with customized pricing plans to maximize potential for recurring business
and also make our services more appealing than competitors. Services rendered will have pricing packages based
upon hourly rates, square acreage inspected, or kilowatt inspected. The pricing for hourly rates will be $225,
$250 Per Acre, and $1.00 Per Kilowatt inspected. In order to steal clientele from competitors, USI will offer a
discount match on current price of services being made for a period of time, and then a price match. Contractual
agreements for a retainer, or regularly scheduled inspections will be heavily pushed to lock in recurring revenue
streams, and allow clients to the flexibility to schedule service whenever it is needed.
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V. Operational Plan
1. Production
Prior to the scheduled inspection, the weather will be monitored extensively to ensure optimal flying conditions
on the day of the planned service. Upon the day of the scheduled service, USI will arrive to the job site at the
scheduled time to analyze the best flight plan, and conduct the imaging and filming. After the imaging is captured,
USI will analyze the footage, and write a report identifying the status of the machinery, and make any
recommendations. The report will be printed and personally handed to the operations manager.
2. Quality control
The drone and camera equipment will be transported in protective casing to ensure that equipment is not
damaged during transportation. Extra parts such as battery packs, spare rotors and other pieces of vulnerable
equipment will be stored in the work van to ensure that service can be conducted in the event of an equipment
malfunction.
3. Legal environment
There are multiple parts of the business that could be exposed to legal liabilities, among them are drone operation
legality, vehicle operation, provision of accurate reports, and potential property damage in the event of a crash.
USI will acquire insurance for the work vehicle, and the drone in order to protect any assets. USI will also acquire
a remote pilot airman certificate from the Federal Aviation Administration to allow for the commercial use of a
remotely operated drone. USI will also utilize an ITC thermography certificate to ensure that the reports
provided to the client are thoroughly and properly analyzed.
4. Personnel
Michael Kavalchuk, owner of USI, will be the sole employee of the company. He will be responsible for conducting
inspections, marketing, and any other business operations. He will also forego a salary in the first year to reinvest
any profits made back into the company. The hiring of additional staff members may be considered in the event of
extreme growth, or if planned growth of 25% each year is deemed to be too taxing for one person to handle.
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VI. Management & Organization
1. Biography
Michael Kavalchuk is the sole employee, chief operating officer and founder of Uav Solar Inspection. He is a recent
2017 graduate of Wentworth Institute of Technology. He acquired a degree in Business Management
concentrated in Technology Project Management, and supplemented his coursework with relevant work
experience in analyzing and making processes more efficient. The combination of his work experience, recognition
of the ever-expanding solar industry, and desire to contribute his efforts to a greater cause led him to founding
USI.
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VII. Financial Plan
1. 12-month profit & loss projection
As seen below, the 12 month financial projects show a roughly ~$2000 loss. This is due to a number of
factors including the high initial cost of equipment, the owner foregoing a salary in the first year to reinvest
profits into the company, and operating costs.
2. Optional: 3-year profit & loss projection
The three year profit and loss projections show the expectation of steady growth. Although the owner will
take on a salary in year two, profits will continue to rise because minimal overhead to operate the business,
and recouping investments incurred in acquiring equipment.
January February March April May June July August September October November December 2018 2019 2020
Sales -$ -$ 2,250.00$ 2,250.00$ 2,250.00$ 2,250.00$ 2,250.00$ 2,250.00$ 2,250.00$ 2,250.00$ 2,700.00$ 2,700.00$ 23,400.00$ 29,250.00$ 36,562.50$
Salary Expense -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (15,000.00)$ (20,000.00)$
Insurance Expense (229.16)$ (229.16)$ (229.16)$ (229.16)$ (229.16)$ (229.16)$ (229.16)$ (229.16)$ (229.16)$ (229.16)$ (229.16)$ (229.24)$ (2,750.00)$ (2,750.00)$ (2,750.00)$
Certification Expense (2,145.00)$ (1,995.00)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (4,140.00)$ -$ (150.00)$
Equipment Expense (10,450.00)$ -$ (350.00)$ (350.00)$ (350.00)$ (350.00)$ (350.00)$ (350.00)$ (350.00)$ (350.00)$ (350.00)$ (350.00)$ (13,950.00)$ (4,200.00)$ (4,200.00)$
Marketing Expense (250.00)$ -$ (1,120.00)$ -$ (300.00)$ -$ - -$ (1,650.00)$ -$ -$ (3,320.00)$ (3,320.00)$ (3,320.00)$
Depreciation Expense (88.34)$ (88.34)$ (88.34)$ (88.34)$ (88.34)$ (88.34)$ (88.34)$ (88.34)$ (88.34)$ (88.34)$ (88.34)$ (88.26)$ (1,060.00)$ (1,060.00)$ (1,060.00)$
Net Profit (13,162.50)$ (2,312.50)$ 462.50$ 1,582.50$ 1,282.50$ 1,582.50$ 1,582.50$ 1,582.50$ (67.50)$ 1,582.50$ 2,032.50$ 2,032.50$ (1,820.00)$ 1,100.00$ 6,182.50$
UaV Solar Inspection
Pro Forma Income Statement
For Years Ending 2018 - 2020
2018 2019 2020
Sales 23,400.00$ 29,250.00$ 36,562.50$
Salary Expense -$ (15,000.00)$ (20,000.00)$
Insurance Expense (2,750.00)$ (2,750.00)$ (2,750.00)$
Certification Expense (4,140.00)$ -$ (150.00)$
Equipment Expense (13,950.00)$ (4,200.00)$ (4,200.00)$
Marketing Expense (3,320.00)$ (3,320.00)$ (3,320.00)$
Depreciation Expense (1,060.00)$ (1,060.00)$ (1,060.00)$
Net Profit (1,820.00)$ 1,100.00$ 6,182.50$
UaV Solar Inspection
Pro Forma Income Statement
For Years Ending 2018 - 2020
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1. Projected balance sheet
2. Depreciation Calculation
3. Break-even calculation
as of 12/31/2018
Assets
Current Assets
Cash in bank 23,400.00$ Accounts receivable -
Total Current Assets 23,400.00$
Fixed Assets
Machinery & equipment 11,000.00$
(LESS accumulated depreciation on all fixed assets) (1,060.00)$
Total Fixed Assets (net of depreciation) 9,940.00$
TOTAL Assets 33,340.00$
Liabilities and Equity
Current Liabilities
Accounts payable (25,220.00)$
Interest payable (1,261.00)$
Taxes payable (2,520.00)$
Total Current Liabilities (29,001.00)$
Long-term Debt
Bank loans payable -$
Total Long-term Debt -$
Total Liabilities (29,001.00)$
Total A + L 4,339.00$
UaV Solar Inspection
Balance Sheet
For Years Ending 2018
Equipment 10,450.00$
Salvage Value 2,500.00$
Depreciable Cost 7,950.00$
Assets Lifespan 7.5
Dep / Year 1,060.00$
Depreciation Calculation
# of Jobs 52
Income Per Job 450
Total Income 23,400.00$
Operational Costs (25,220.00)$
Break Even Point in Time 1 Year 1 Month
Break Even Point in # of Jobs 56
Break Even Point
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Appendix – Works Cited
"New rules on small drones: What you need to know." Los Angeles Times. Los Angeles Times, n.d. Web. 01 Aug.
2017.
"Solar Industry Anxious Over Defective Panels." The New York Times. The New York Times, 28 May 2013.
Web. 04 Aug. 2017.
Systems, Inc. FLIR. "Thermal imaging cameras: a fast and reliable tool for testing solar panels." FLIR Systems. N.p.,
n.d. Web. 05 Aug. 2017.
"Drones could inspect 16 hectares a day for just €1,800." Solarplaza Drones could inspect 16 hectares a day for
just €1,800. N.p., n.d. Web. 05 Aug. 2017.
"Drones Cut Cost of Thermographic PV Panel Inspections." UAS VISION. N.p., 15 Sept. 2016. Web. 01 Aug.
2017.
"Blog: Using Drones for Building Inspections." Using Drones for Building Inspections | Lowe's for Pros. N.p., n.d.
Web. 01 Aug. 2017.
"Infrared Thermography Certification." ITC Infrared Thermography Certification. N.p., n.d. Web. 01 Aug. 2017.
"U.S. Solar Market Insight." SEIA. N.p., n.d. Web. 01 Aug. 2017.
Know Before You Fly. N.p., n.d. Web. 07 Aug. 2017.
Nyberg, Michael. "Renewable Energy - Overview." Energy.ca.goc. CA Gov, 22 Dec. 2016. Web. 4 Aug. 2017.
