Alternate Solar EnergyINTERPERSONAL SKILLS

NO MORE POWER SHORTAGE

Syed Arif Ali Shah (7922)

Zeeshan (10912)

Faiza (10936)

Saira Javed (7558)

Submitted to : Zehra Shah7/17/2010

Table of Contents

COVER PAGE page # 1

TABLE OF CONTENTS page # 2

ACKNWOLEDGEMENT page # 3

ABSTRACT/ SUMMARY page # 4

INTRODUCTION page # 5

REVIEW OF LITERATURE page # 6

SOLAR ENERGY ADVANTAGES page # 7

DATA ANALYSIS page # 9

CONCLUSION page # 9

REFERENCES/BIBLIOGRAPHY page # 1

ACKNOWLEDGEMENT

I first of all thank the Almighty God who gave me the strength to success.

I want to thank our course instructor, who was always there, when needed and kept giving us guidance so that we can achieve our goal.

I thank my family and friends, who always encouraged me to keep working.

Thanks to all the students and my group members. Without their support this was not possible.

ABSTRACT/SUMMARY

This report is basically about a new business plan which is to be launched by four equal partners. We have determined by conducting a research that whether we should adapt the new upcoming trend “Solar Energy”.

The business is focusing towards providing alternate energy systems in Pakistan. We are interested in this business because it may prove to be very successful, as the product we are offering is very much in demand.

The people of Pakistan are suffering from hazardous short fall of electricity. Load shedding is taking place on regular basis for several hours. Our regular supply of electricity is not enough as per our requirement. There are so many villages in Pakistan where there is no electricity for people. Therefore people of Pakistan need to be provided with an idea where they should get enough electricity so that they can manage their living and live there life easily with all facilities.

For this purpose we have came up with an idea, which would solve this problem while earning us money. We are offering alternate energy system at very affordable prices.

INTRODUCTION

We are a group of friends and a successful business partners. Our main aims and goals are to provide our country with something that will not only give us a temporary result but also a permanent result, it is called alternate solar energy. Our main aim is to make Pakistan a greener environment and convenient for the people who are living in it.

AN over view of Solar Energy:

As solar power does not make sense for all locations in the world. The initial cost of installing solar panels or other sources of solar energy is high, and that is not easy for most people to get around. No matter how much some people would like to get involved in the movement to independent energy, it is cost prohibitive. To achieve the highest level of efficiency, which is the entire point of going solar in the first place, you need the proper amount of roof space to support the panels your house may require. Not only how much space is available, but also the location of your home is also relevant to whether or not you can maintain solar energy. Some houses simply do not receive enough sunlight to produce substantial energy. This could mean that either your house is not positioned favorably in relation to a tree or other house.

First time in Pakistan we are providing solar power products at consumer's level. It is most economical way to get energy and power for commercial or domestic usage. We come up with a business plan to sale a complete energy package of solar power at much cheaper price than the other companies selling it right now in the market. We all partners have researched and have contacted with the company which will be providing us with these technology at exclusive price. The purpose/objective of this research and business plan is to know that whether we should adopt this technology here in Pakistan or not. By the research we have came up with the decision that solar energy is the right choice for now a day’s hazardous shortage of electricity. And knowing that this business plan will going to be successful for the future concern as coal will going to be banned for environment then solar energy will be the closest and easiest way to get energy.To start this business we have four equal partners but we are still requiring a bank loan in order to make this business more successful and lively.

REVIEW OF LITERATURE

Traditionally fossil fuels are used for energy such as coal, furnace oil, petroleum products etc. Alternate energy refers to geo thermal, solar, wind etc. the form of alternate energy we shall use is solar energy. Why? Abundant sunshine in all of Pakistan. Solar energy can be harnessed by,

Capturing light energy of sun i.e. Photo voltaic. Capturing heat energy of sun i.e. solar thermal.

We shall use the Photo Voltaic or solar energy as commonly referred system is composed of solar panel, charge controller, inverter and battery.

Solar power panel comprises of small silicon cells. Interconnected circuits. Charge controller ensures stable supply of current. Inverter or commonly UPS changes DC current to AC. Batteries store power for times when solar light is not available i.e. at night.

The cons of implementing solar power in your home are primarily cost and location related, but if those two items do not pose issues for you, the good news is…

If solar power is looked at through a long-term lens, you will eventually make back what you originally spent, and possibly start saving money on your investment

Let’s not forget that solar energy increases the value of your home too. Solar power is not subject supply and demand fluctuations in the way that gas is. Silicon, the primary component of solar panels, is also being more widely produced, therefore, less and less expensive with each passing year.

Solar power is independent, or semi-independent. This is great because you can supply your home with electricity during a power outage. Solar power can also be used in remote locations, places where conventional power can’t be reached. On a larger scale, solar power also reduces our need to rely on foreign sources for power.

And last, but certainly not least, it’s good for our planet! Solar energy is clean, renewable and sustainable. It does not fill our atmosphere with carbon

dioxide, nitrogen oxide, mercury or any other pollutants. It is a free and unlimited source of power, unlike expensive and damaging fossil fuels.

METHODOLOGY

Geographic Segmentation:

All Nation Wide.

Socio-Economic Class:

A, B and C.

Quantitative research:

Two in-depth interviews.

Time Frame:

The estimated time was 2 weeks and the task also completed in 2 weeks.

Visits:

We visited, solar energy technician at Saddar, Karachi.

Research material:

We studied articles, which we got officially on our visit and on internet.

DATA ANALYSIS

Now the question arises at starting of this business and spreading technology in Pakistan.

>What is the alternate solar energy?

>Why we need alternate solar energy?

>When we need alternate solar energy?

>Is it costly?

>What can we expect from it in future?

Answer to all these questions after research are:

>Generating electricity from sunlight by solar panels on roof of the house or at any top space where sunlight or direct sun beam spread on it and create electricity by that. Creating a more greener and friendly environment also by generating electricity from this system and not the coal system which is very harmful to our environment.

>Now a days, we are facing a lot of power failure and in some areas of the Pakistan; the electricity is like a full moon, where people can only have it once in day or hourly basis. And in this warm and hot climate, it is becoming hard for us to survive. So alternate energy is needed to all those people who are facing these problems a lot.

>We need it immediately as now day’s hazardous power shortage is killing few as well. So we need this system of energy as soon as possible.

>Yes. It is costly but we are providing an easy installment package as well to all those who earn less in and it is only a onetime cost not like generator, pouring fuel again and again. Any time you use it.

>In future solar energy is going to be very famous and is going to spread nationwide, so we should start adapting this technology from right now so we don’t get far behind from fast moving world again and we already have car running on solar power which is not available right now in Pakistan but after accepting and adapting this technology of generating your own electricity, the solar power car will be here soon..

FEASIBILITY

We are four partners; each one is ready to invest 3,000,000 or 3 millions. This becomes the total of 12,000,000 or 12 millions.

Our requirements are,

1. Transport vehicles

2. Office

3. Warehouse

4. Furniture and electronic supplies

Transport vehicle we require are 1 Hyundai shezore truck which cost 879,000 and 1 Suzuki pickup which cost 504,000. So total of vehicle cost are 1,383,000.

Office we are going to purchase at Clifton of 3 rooms at a cost of 4,000,000 in which 1 room will be the office for clients and dealers, other will be for showroom/display room and last room will be used for our staff for continues inventory.

Warehouse we are going to purchase at Clifton as well for future benefit as new port will going to build near Clifton. The cost of the warehouse will be 4,500,000

Office will be requiring some furniture for showroom and for office work. And remaining electronic supplies i.e. computer, printer, fax, copier etc.

Our target market is Domestic households. We shall sell varied products to diverse customer. Each house requires almost 500 watts of electricity when there is no power.

We have categorized customers in three categories.

1. Low use customers. Who need only 2 fans+3 lights+ TV + Fridge.

2. Medium use customers. Who need 4 fans+ 6 lights+ TV + Fridge + split.

3. High use customers. Who need 6 fans+10 lights+ TV + Fridge + split+ and any other heavy electronic equipment?

Market survey indicates that in order to power 2 fans + 3 lights we need approx 500 watts of solar panels + a charge controller + 2 batteries for 12 hours battery backup.

Each watt cost 90rs in open market, to us if we import it, it will going to cost 80rs per watt.

Purchasing from open market

90 x 500 watts = 45000

Purchasing from import

80 x 500 watts = 40000

NOTE: charge and battery are separated and can be found at cheaper price in domestic market i.e. 10000 each.

For different users, we have 3 different packages,

1. 500 watts = 600002. 1500 watts = 140,0003. 4500 watts = 380,000

Initially we are importing only little quantity of complete packages.

Package 1 x 40 sets = 2,400,000

Package 2 x 20 sets = 2,800,000

Package 3 x 10 sets = 3,800,000.

The profit policies would be stable for 6 months, after every 6 months; there would be an increment of 0.8% on the sales per unit. The profit margin for the initial start would be 10% on cost price. The policies are stable for one year only. After a year the policies may or may not be regulated as per given ratio.

Income Statement of 1 st half of the year.

Sales:Total Sales (9,600,000 x 6)

57,600,000

Cost of goods sold:Total purchase (8,600,000 x 6)

(51,600,000)

Gross Profit 6,000,000

Operating Expenses:Utility bills expense 100,000Fuel Expense 250,000Miscellaneous Expense

27,000

Salary Expense 168,000Total expense (545,000)EBT(EARNING BEFORE TAX)

5,455,000

Tax 10% (545,500)

EAT(earning after tax) 4,909,500

Income Statement of 2 nd half of the year.

Sales:

Total Sales 58,060,800

Cost of goods sold:Total purchase (8,600,000 x 6)

(51,600,000)

Gross Profit 6,460,800

Operating Expenses:Utility bills expense 100,000Fuel Expense 250,000Miscellaneous Expense

27,000

Salary Expense 168,000Total expense (545,000)EBT(EARNING BEFORE TAX)

5,915,800

Tax 10% (591,580)

EAT(earning after tax) 5,324,220

Profit in 1st half of the year: 4,909,500

Profit in 2nd half of the year: 5,324,220

When we increase 0.8%. The profit increased by 414,720.

Now we are shortened in cash of 6,883,000rs. So we need bank to give us loan of 7,000,000.

As a security to bank we will be giving our office and warehouse worth 8,500,000rs.

CONCLUSION

Our hypothesis was: we think that solar energy can be used to power electronic appliances while not polluting the environment. Our goal is to learn how solar energy works, and in which situations it can be used.

The results of our research proved that solar power caused no pollution whatsoever. What we did not mention, was that solar energy can be used to power houses and their electronic appliances, such as flashlights, electric motors and even such things as refrigerators. It can also be used to heat water and cool buildings!

There are many possible ways of demonstrating how solar energy can be used. One way would be to demonstrate physically, such as building a model that runs on solar energy such as a car or something that uses an electric motor. Another way to demonstrate would be to compare solar energy to other alternative energy sources to see which one produces the most power or least pollution.

We have learned much more about how solar energy can be used to make electricity and power everyday appliances. We also researched about the structure of the PV cell, which itself is the absorber of solar energy. This was a fantastic business plan, and through this idea we can accomplish many things.

REFERENCES/BIBLIOGRAPHY

We have read articles from

www.wikipedia.com.

www.paksolarpower.net

www.solarenergy.com

And we have visited different stores and technician at saddar and engineering teachers of IQRA UNIVERSITY