Simplifying Energy Savings

The Challenges of Distributed Solar in China:  

What the future of Solar looks like and how to scale it up.

Our Purpose

Increase the speed of project development, bring capital to the market and provide PPAs to smaller projects.

All of this will decrease the cost of solar and the cost of project financing to achieve scale

What We Do

A comprehensive high-level project assessment

The right suppliers from a proprietary database

Off-balance sheet financing

Additional project oversight

InitialAssessment1

SupplierSelection23Quality

Assurance

Support client

decision-makingBuild an

lasting PV system

What unique challenges does China distributed solar face

1. Ensuring high quality installations, engineering and panels is still a huge challenge

2. Project finance from banks is almost non-existent3. The State Utilities are not necessarily credit worthy4. Incredibly high uncertainty about energy policies5. Currently unable to sing off-site or virtual PPA (this may

change soon)

What is exciting about distributed solar in China?

1. Most available rooftop space in the world

2. Still relatively high commercial electricity price (avg over $.15/kWh)

3. Government moving aggressively away from utility scale and towards distributed

4. Cheapest panel prices globally

How to scale scale solar?

1. Standardization – Contracts, applications, pricing

2. Quality – certification, more experience, third-party support

3. Systemization/Automation – i.e. our solar calculator

4. electricity transfer

Why distributed solar for C&I?

Reduce facility’s operational cost and improve profitability.

PPA financing locks-in a discounted price and offsets high daytime

electricity rates.

Helping meet your CSR goals. For example, Apple plans to build over 2 GW of solar

power for its suppliers in China.

Cheaper Clean EnergyReduced Carbon Footprint & Renewable Energy Targets

Get media exposure as a

leader in sustainable

development and climate

mitigation.

Improved Property Value A great opportunity to

self-invest, enjoy national and local

subsidies, and gain profit through carbon

trading.

Great Return on Investment

Long Project Time Horizons

With so many parties, aligning stakeholders and maintaining good communication is crucial, so often these channels breakdown if not made a priority and projects don’t proceed because of stakeholder mismatch

Client

Seeder

EPCs Financiers

(PPA)

Rooftop PV System

State Grid

Additional support

Electricity

Find

Subsidy (self-invest)

Subsidy (PPA)

Finance

Install Apply

Find Find

Project Relationship Map

Many Stakeholders

How a Solar Power Purchase Agreement (PPA) Works

The financier covers all costs of the solar system.

You sign a PPA with them to purchase the

power produced for 20-25 years.

Seeder’s partner designs, sources and installs the solar system, including all

paperwork and utility grid

connections.

For the power that you consume from the system, you purchase it at

a rate 10-15% below the price charged by the

utility.

All monitoring, maintenance and insurance of the

system are included to

ensure maximum electricity output.

At the end of the contract, you can

renew the agreement,

purchase the system outright, or have it removed,

all at no cost.

0COST

10%ELECTRICITY

PRICE DISCOUNT

20 YearsOF POWER

PRICE PREDICTABILIT

Y

FreeSYSTEM

REMOVAL AFTER 20

YEARS

Key Contractual Terms:• Investor covers all capex costs• EPC secures all regulatory approval• 20 years contract term• All subsidy and carbon savings to the

investor• Investor liable for operation and

maintenance within contract term• Client has the options of buy out the

system or extend contract in the end• Get solar with no cost, no hassle, and no

risk!

PPA Financing: Energy and Cashflow

Service EPC Financier Broker

Solar PV system

Design & install the system ✓ Sell your

roofComprehensively evaluated EPCs

Financing Provide project capital Limited experience ✓ Top quality financiers

Decision-making support

Understand project basics before engaging EPC

Limited capacity

Quick assessment, with information

ready for high-level approval

Complementary services

Contribute to a high quality PV system

Sell your roof

Insurance, roofing, certification, etc.

Building Portfolio optimization

Strategically position solar for your business Experienced

Compared to Others in the Market

SampleComprehensive Investment Assessment

• Current electricity price during sun hours: 1.01875 RMB/kWh. Calculated based on current power prices.

• Rooftop solar offsets high sun hour power prices. When self-invest, that price becomes 0; under a PPA, that price receives a 10% discount.

SELF-INVEST PPA FINANCE

14,440,000 UPFRONT COST (RMB) 0

1,900,000 ANNUAL SAVINGS (RMB) 200,000

37,775,000 20-YEAR TOTAL SAVINGS (RMB) 3,950,000

Laying out options for self-invest and PPA financing

Case Study: Zero-Cost Solar on a Tongzhou Warehouse

Singapore-based real estate investment firm Redwood Group came to Seeder asking for the best solar development strategy for their Tongzhou warehouse, so they can meet their commitment to sustainable operations.

Seeder connected Redwood with solar developer UGE International and off-balance sheet financier. The project was completed in fall 2015. They are now working with Seeder to build more rooftop solar projects nationwide.

Project Information Benefits2000 m2 rooftop area Zero cost renewable energy

(financier investment: over 2.1 million RMB)

248 kW System size 12% electricity price discount275,000 kWh Annual electricity generation

20-year electricity price stability, hedge against rising utility prices

90% electricity powered by solar

213 tons Avoided carbon emissions annually

20-year PPA, fully financed

Minimal work in the project

Key numbers

ProjectTimeline

Seeder

Actions

Client Action

s

Ran financial analysis, calculated benefits

Sourced EPC and financier

Negotiated prices

Managed client communication

Provided project oversight on EPC

Provided access to the roof and facility

Signed PPA with financier

Received clean and cheap energy with no hassle!

ASSESSMENT FIND SUPPLIERS PROJECT CONSTRUCTION SYSTEM IN USE

Project featured in:

Electricity Production and Net Cashflow over 20 Years “Having environmentally sustainable

features is seen as a competitive advantage.”

-- Michael De Jong-Douglas, Managing Director, e-Shang Redwood

Case Study: Zero-Cost Solar on a Tongzhou Warehouse

With our new Solar Calculator, you can learn how much you will be able to save in electricity cost with rooftop solar. All you need is your location and the size of your rooftop.

Start by scanning the QR code or visit seederenergy.com/solar.

Simplifying Energy Savings

We turn your roof into Renminbi, in a low-risk, hassle-free way.