NAME OF THE COMPANY
Company Address
Company Phone Number [LOGO]
Name of Owner, Title of Owner
Address and Phone number of Owner
Plan Prepared Date
Plan Prepared by:
PLAN FOR A SUSTAINABLE ENERGY INSTALLATION BUSINESS
STATEMENT OF PURPOSE
The purpose of the
business is to provide residents of the Navajo Nation with an alternative
source of electrical power. The business will accomplish this by
installing, maintaining, and repairing solar photovoltaic power systems.
The business owner will need to add his/her vision for the company and the
company?s mission statement to this section.
THE BUSINESS
Legal Structure:
The business will be a
sole proprietorship run by a resident of the Navajo Nation. The reason
for this is to help keep money earned by the Navajo people a part of the
reservation?s economy. In order to set up a sole proprietorship on the
Navajo Nation, the owner must apply to the Navajo Nation Division of
Economic Development.
Description of the Business:
The business will install, maintain, and repair solar
photovoltaic power systems. The business will concentrate on providing
solar energy to the un-electrified homes on the Navajo Nation. The
business will be located on the reservation and be operated solely by
residents of the Navajo Nation.
The solar system components will be ordered in lots
from a manufacturer and installed in individual homes on the Navajo Nation
by employees of the business. After installation, the business will
provide scheduled maintenance and necessary repairs on the systems.
The business will have installation crews that install
new solar photovoltaic energy systems and maintenance/repair crews that
work on the systems after they are installed. Each crew will consist of
one electrician and one journeyman. The business owner should try to avoid
being a crewmember because he/she will need to devote his/her time to
overseeing the general operations of the business as a whole.
It is estimated that it
will take each installation crew approximately two and a half days to
complete the installation of one solar energy system. Some systems may
take slightly longer to install because the house needs to be retrofitted
with electrical wiring. Maintenance and repairs should take less than one
day per system. The vast distances present on the Navajo Nation also need
to be accounted for when scheduling projects. As the number of installed
systems increases, maintenance schedules need to take into account the
geographic clustering of the systems.
Services:
The service rendered by the business will
be the installation, maintenance, and repair of solar photovoltaic power
systems to un-electrified homes on the Navajo Nation. The business will
work with the system and its components. The components of these systems
include solar modules (to convert energy into electrical current),
batteries (to receive and store electrical current), a converter (to
convert DC energy captured from the solar modules to AC energy), a charge
regulator (to regulate the solar current into the battery) and use loads
(anything that runs on electricity, such as lights). In some instances,
existing houses may also need to be retrofitted with electrical wiring and
outlets.
Solar
The components of these systems include solar modules (to convert energy
into electrical current), batteries (to receive and store electrical
current), a charge regulator (to regulate the solar current into the
battery) and loads (anything that runs on electricity).
The business will mainly concentrate on installing three different sizes
of photovoltaic solar power units. The first is relatively small, 500
watts. The daily output of this system 2.75 kWh, which can support the use
of two light bulbs, a radio or small clock, a range oven, color TV and VCR
or DVD, and a washing machine (one load of laundry a day). The second
system is 1,000 watts and produces 5.51 kWh a day. This system can support
the same things that the 500-watt system can support as well as a small
stovetop burner and a freezer. The largest system is 1,500 watts and
produces 8.26 kWh daily. This system can support all of the above as well
as a space heater (used for four hours a day) or a computer and printer,
and microwave. These are just examples of items that the system(s) will
support. There is
also the possibility that large installations will also be done. These
installations will be for clusters of housing, where there is more than
one single dwelling (or other needs) at a location. The needs will vary
depending upon the size of the housing cluster. There may also be a need
for a meter at each housing unit.
Wind
Performance: 500 - 1,500 Kilowatt-hours (kWh's) per month (depending on
wind resource). This is recommended for: Large remote homes or facilities,
using at least 700 kWh per month. Locations where delivering or storing
diesel fuel is a problem.
Retrofit to existing diesel-only power system to provide 24-hour power
availability
Wind Class 2 or higher. This is suitable for larger remote homes,
facilities, or communities that need more than 500 kWh's of alternating
current (AC) energy per month. These systems are often retrofitted to
existing diesel-only systems in order to save fuel and provide 24-hour
power.
The system stores excess energy in batteries for use during low wind
periods. It can also charge the batteries from a back-up generator. With a
back-up generator the remote system can provide reliable 24-hour power
with minimal attention from the operator. The towers are approximately 100
ft. tall and suitable for enough for most locations. Shorter towers reduce
performance.
Equipment costs typically include the following costs: shipping, sales
tax, permit costs, foundation and anchoring, wire run, turbine and tower
erection, battery racks or vault, electrical hook-up, and inspection fees.
For budgeting purposes, these costs typically range from $4,000 (customer
installed, no sales tax, etc) to $20,000 (Certified Dealer, sales tax,
diesel generator, etc).
Residential Off-Grid Systems:
n order to
meet the needs of different customers, highly versatile stand alone solar
electric power systems were designed for individual houses. The main feature
of the systems are that they can be expanded in output capacity to meet the
increase in energy requirements of customers. There are two designs offered:
System I meets the basic lighting and refrigerator (2.9 cubic feet) loads of a
one bedroom dwelling and System II meets the requirement of System I and the
additional loads of a personal computer, radio, and television. The two
systems are designed to be stand alone power systems without a back-up power
source. For ease of installation and to offer reliable and efficient
operation, the system designs are standardized for all customers based upon
local irradiation, weather data, and a generalized power consumption model
(see Appendix A).
There is also the possibility that large
installations will be done. These installations would be for clusters of
housing, where there is more than one single dwelling (or other needs) at a
location. The system needs will vary depending upon the size of the housing
cluster. There may also be a need for a meter at each housing unit.
Location:
The business will be
located at a site on the Navajo Nation. This will provide the business
with easy access to the installation/maintenance locations. The sole
proprietor may choose to begin the business out of his/her home.
If the owner decides
to operate the business using a store-front, a business-site lease will
have to be obtained from the Navajo Nation?s Division of Economic
Development. The Division of Economic Development will supply the
owner with any and all documents required to complete the business-site
lease application. The business?site lease process can be a very
protracted one.
Management:
In this section, the
owner of the business must describe him/herself. He/she must describe
his/her skills in relation to this business (how he/she will bring value
to the business). He/she must also describe his/her weaknesses, and how
he/she plans to improve him/herself in those areas. If he/she is not
planning on improving him/herself, he/she must explain how he/she will
hire other people to take care of those tasks. The owner should take
business courses either through a college or in a seminar in order to get
complete training in running a small business. The courses that the owner
plans to take should be described in this section. The owner must include
a resume in the supporting documents section of the business plan. It is
also a good idea for the owner to include personal letters of reference
from past associates.
The Center for
American Indian Economic Development at NAU holds workshops several times
a year that may meet the needs of an entrepreneur who does not have the
necessary business skills to run a business. The Center can be contacted
for information on these workshops and other technical assistance.
Personnel:
This section is used to describe each job required by
the business, the estimated number of employees, and the business? hiring
procedures. A job description for all personnel is required, as well as
the wage and hiring procedures for each position.
The business will
employ licensed electricians and journeymen trained in the installation,
maintenance, and repair of solar photovoltaic systems. The business will
also have a manager, presumed to be the owner, and at least one support
staff person. How the employees will be trained, what courses they must
take, etc. should be described in this section. This section may also be
used to describe any employee benefits that the company will be offering
and how the company will handle extremely busy and/or slow times with
regard to personnel.
Methods of Record Keeping:
Record keeping methods
will vary. Part of the business plan will be to train either the business
owner or an employee in appropriate business practices. An accounting
software program such as Quickbooks can provide the record keeper with a
template of commonly used financial documents, such as invoices, receipts,
income statements, etc. These templates can be customized to suit the
needs of the business.
Insurance:
The business will be
required to obtain full coverage motor vehicle insurance for its work
trucks under its automobile loan provisions. Under Navajo Nation rules,
the business owner will not be required to purchase liability bonding and
insurance unless the department contracting the business? work requires
it.
Additionally, the
business owner may choose to purchase employer?s liability or workmen?s
compensation insurance to protect the business owner from liabilities that
may arise as a result of employee injury while on the job. He or she may
also wish to obtain public liability or general liability insurance to
protect himself/herself from liability to third parties who may be injured
during the operation of the business. However, neither of these types of
insurance is strictly required for conducting business on the Navajo
Nation.
Legal Aspects:
Since the business will be owned and operated by
Navajos on the Navajo Nation, state laws and requirements do not apply to
the business. However, the business and its employees must abide by the
laws and regulations set forth by the Navajo Nation. The business will
need to obtain licensing and certification from the Navajo Nation?s
Business Regulatory agency in order to perform electrical work on tribal
lands. There is no fee associated with the license and certification.
Additionally, if the business begins to operate outside of the Navajo
Nation, it will then have to follow the rules and regulations set forth by
Arizona law for electrical contractors.
In order to start a
sole proprietorship on the Navajo Nation, an application must be filled
out and presented to the Navajo Nation?s Division of Economic Development.
The Division of Economic Development will explain any and all supplemental
laws that the business must follow.
Security:
Bonding and insurance are both appropriate.
MARKETING
Summary of Marketing Plan:
Target Market:
The target market that
the business will want to focus on during its start-up stage is the
un-electrified homes on the Navajo Nation. According to the United States
Year 2000 census data, there are a total of 41,041 homes on the Navajo
Nation. Historical data has shown that approximately 37% of all homes on
the reservation do not have electricity. Therefore, the target market
includes the approximately 15,185 homes that are currently un-electrified.
Note that this is an estimate projected from the census data and current
housing markets.
In addition to the
un-electrified homes, the business should also consider targeting homes
that are going to be built on the reservation in the near future. It is
possible that some homes will be built with access to electricity, and
others may be cluster dwellings that may be serviced through larger solar
systems. An economic development conference sponsored by the Navajo Nation
in 2000 reported a need for 30,000 new homes on the Navajo Nation. It is
estimated that approximately 10 percent, or 3,000, of the newly built
homes will be outside of the APS distribution area (often referred to as
off-grid). The business should have a plan to market their services to the
companies that are planning to build these new homes. This creates a
demand potential of about 18,185 homes that should be a part of the target
market. Note that while all of these homes may not use solar, (some may be
close enough for conventional electrical lines to be run, or for other
renewable energy sources to be utilized) all of these homes are potential
customers.
It must be pointed out
that given the income demographics of the Navajo Nation, few families will
be able to independently afford to purchase the systems outright. The
recommendations in the main body of this report include having the Navajo
Nation finding alternative funding for the electrification program. Unless
the secondary funding is found, the demand potential shrinks considerably.
But if secondary funding is indeed found, then the pro forma statements in
the later appendices show a good potential for a profitable business
enterprise.
Growth
Potential:
Although the business will begin with
only installation crews, it will become necessary to expand its operations
to include maintenance and repair crews within three months due to the
photovoltaic system?s quarterly maintenance schedule. Using the demand
potential of 18,185 homes, it will take 10 installation crews many years
to fulfill the possible need for solar power. This creates a large
potential for business growth.
As the business expands, its customer
base should also grow. In the future, the business may plan to market its
services to all homes on the Navajo Nation, including ones with access to
electrical power. It may begin servicing other remote regions of Arizona
as well. Additionally, other uses for solar systems may develop such as
water pumping for animal tanks, remote signage, and water heating.
Current
Providers:
The only existing providers of solar
photovoltaic power on the Navajo Nation are NTUA and
Native American Photovoltaics
(NAPV). NTUA has a 200 home solar test
program currently in process. Sandia Laboratories is collaborating with
NTUA on the program and has plans to assist them in developing a
maintenance program for the solar electric systems.
There is also currently a program being run by NAPV in which Native
Americans residing on reservations have the opportunity to own a solar
generator system after leasing it. The systems installed provide one
kilowatt of power and are priced at approximately $10,000 each. The NAPV
is a non-profit organization that began this endeavor with funding from a
federal grant. NAPV?s program also includes a plan for maintaining the
solar generator systems that it installs by training Navajo workers how to
perform the required maintenance.
APS is the electrical provider for
Arizona, including the Navajo Nation. It provides electric service to
homes on the reservation by hooking them up to a grid. The cost of
electricity itself is not higher on the reservation than elsewhere in
Arizona; however, the price to be hooked up to the grid can become
substantial for some homes on the reservation. This is due to the home?s
distance from the grid and the difficulty of getting the electric lines to
remote locations.
Competition:
Currently, the competition for this business is from the established power
companies. However, in remote locations where accessibility to the power
grid is difficult there competition diminishes. The cost of electricity
itself is no higher in these remote locations will be no higher than
anywhere else, however the price to be hooked up to grid can become
outrageous for some homes. This is because of the homes distance from the
grid and the difficulty of getting to the remote locations.
Methods of Distribution:
This business will be
working primarily from customer orders. The business will have to work
with the supplier to set up a system where the solar power systems are
delivered to the business as quickly as possible after being ordered.
Since sufficient time must be allowed for the units to be shipped, the
business will have to keep an adequate inventory of solar system
components on hand. The installation crews will drive company vehicles to
each customer?s location in order to install the systems.
This method of
distribution will require several things. First, it will require a good
working relationship with a supplier of the solar power systems. Second,
it will require the service of a reliable shipping company, as well as a
good working relationship with the shipper. Finally, it will require
well maintained trucks, preferably with four-wheel drive, in order to get
the systems to customers located in remote places.
Advertising:
During the start-up
phase of the business, little capital should be spent on advertising. In
fact, the business should only advertise enough to let the owners of
un-electrified homes know about the business. This can be done through the
use of advertisements that are sent to homes through the mail or displayed
in local market places or Chapter Houses. The advertisements should be
brief, but include information about the business, what the business does,
how to contact the business, and possibly a general price. This will
effectively inform the target market of the business?s purpose.
In the future, the
business may decide to expand its customer base. In order to do this, the
business will need to increase advertising. The business should plan to
advertise in local newspapers or newsletters and on local radio stations
in order to access a larger customer base on the reservation and
elsewhere. Partial day workshops for educational purposes may also be a
viable advertising medium. Working with local Chapter Houses will be a
critical component in educating the Navajo people about the costs and
benefits of solar energy systems. Working with NTUA will also provide the
business owner with additional information about the potential market.
The business may also
advertise in statewide newspapers, on television, and over the radio in
order to increase their customer base throughout the state.
Pricing:
The business should
price installations to include the cost of the system components, labor
costs and overhead. It takes approximately two and a half days for a two
person crew to install a solar system. Using an assumed labor rate of
$35.00 an hour per crew, labor costs will be around $700 per system. The
cost of the system itself varies depending on the size of the system and
the manufacturer. The components for a complete 720 watt system will cost
about $7,200 and $12,400 for a 1,440 watt system. Some houses will also
need to be retrofitted with electrical wiring and the business could
charge an additional $1,000 for this service. The financial implications
of charging different prices are explored in the financial documents
section and shown in Appendix D.
The price ultimately paid by customers will decrease if
they apply for a utility credit buy down. One of the programs offered by
APS is the EPS Credit Purchase Program. Customers in APS service territory
that live in remote areas without access to electricity from APS's
distribution system (the grid) and who purchase and have installed
complete solar systems to provide their electricity are eligible for the
EPS Credit Purchase Program. Customers purchasing a new solar electric
system of 5 kW or less for their remote (off-grid) homes can receive an
EPS Energy Purchase rebate of $2.00 per photovoltaic watt of DC
electricity. For example, a 1,000-watt solar system qualifies the
customer to receive $2,000 from APS. In order to receive the credit,
remote solar customers must sign an EPS Credit Purchase Agreement
assigning APS access to the EPS credits for 12 years.
Estimates of customer?s monthly loan payments for
purchasing either a 720 watt or a 1.44 kW solar power system are presented
in Appendix B. This includes the APS EPS discount for the system, $2,880
for 1.44 kW and $1,440 for 720 watts, and shows possible monthly payments
based on different interest rates and different system costs.
TRAINING:
Training encompasses
many aspects of the overall business. The business owner may need to learn
more about entrepreneurship, operating a business, or using business
software. The record keeper may need to be trained on the use of an
accounting software system or other computer systems.
One member of each crew
must be a trained electrician, meaning that he/she must have some formal
education and apprenticeship. The journeymen will also have had some
formal training. All installation and maintenance/repair workers must be
trained on solar photovoltaic energy systems. Due to the nature of the
job, the maintenance/repair crews may require more training than the
installation crews.
FINANCING METHODS
Start-up Costs:
The start-up costs
associated with this business may be significant because a work truck and
toolkits must be purchased for each crew. The business will need to have a
sufficient inventory of solar system components in order to allow time for
more to be ordered and delivered from the manufacturer. Current estimates
indicate that the lead time for component delivery may be as much as six
to eight weeks. Also, the business should have enough cash on hand to pay
for 100 days worth of operating expenses while waiting for customer
payments to come in. This is essential because some customers may be
slower to pay than others and the business must have enough funds
available to continue operating.
Funding:
There are two primary means of financing the business:
loans and grants. Loans must be repaid and generally accrue interest,
whereas, grants do not have to be repaid. Loans and grants may be pursued
through a variety of venues including: the Small Business Administration,
the United States Department of Agriculture, the Department of Energy, the
Department of Labor, the Bureau of Indian Affairs, and the Navajo Nation.
The Center for American Indian Economic Development provides technical
assistance on loan and grant applications.
DISCLAIMER
The College of Business
Administration, Sustainable Energy Solutions and Northern Arizona
University do not warrant or assume any legal liability or responsibility
for the accuracy, completeness, or usefulness of any information, or
process disclosed in this plan.
This business plan template is meant to provide a guide
for prospective entrepreneurs. The financial data presented in this plan
are based on general assumptions and the accuracy of said assumptions is
in no way promised or guaranteed. It is recommended that professional
guidance be sought prior to starting this or any business.
FINANCIAL DOCUMENTS
For the purposes of
this plan, it is recommended that the business owner obtain funding in the
amount of approximately $400,000 to finance the start-up of the business.
This will cover the costs of purchasing three electrician toolkits, three work
trucks equipped with racks for storing tools and equipment, enough solar units
for six weeks worth of work, 100 days worth of wages and operating expenses,
and office supplies. This recommendation is slightly inflated to ensure that
the business will have enough cash on hand to pay for expenses as they come
due while waiting for customer payments to come in.
The income statement shows the revenues and
expenses of the business for the first two years. The ?bottom line? of the
income statement tells how much total profit the business produced that year.
The pro forma income statement (see Appendix D) details the most common
expenses associated with this type of business. Undoubtedly, the business will
incur other expenses that cannot be anticipated and are not included in the
income statement provided.
Assuming that there are 40 weeks available for work in a year, given
disruptions due to weather, demand, and financial capabilities, each crew
should be able to install 80 solar units per year. If the business prices
the systems using a percentage markup of cost including labor, revenue
would be approximately $10,000, $11,000, $12,000, or $13,000 on each 720
watt system sold at respective markups of 25%, 30%, 40%, and 50%. The
revenue from sales would be $16,500, $17,000, $18,000, and $19,000 for the
same markups for a 1.44 kW system. The income statements in Appendix D
show the results of the different markups assuming that 75% of the systems
installed are 720 watts and 25% are 1,440 watts. This revenue figure is
reported as sales on the income statement.
The
cost of goods sold will depend on the size of the systems installed. For
simplicity, it will be assumed that 75% of the ones installed are 720 watt
systems costing approximately $7,200 each and 25% are 1.44 kilowatt
systems costing $12,400 each. The cost of goods sold amount includes only
the price of the system components to the business. It does not include
the cost of labor or transportation associated with the installation,
maintenance, and repair of the systems.
Operating expenses include any costs necessary for the business to
function. This category includes selling, general, and administrative
costs. It is assumed that the entrepreneur will begin the business out of
his/her home and therefore not incur expenses associated with a separate
office or warehousing facility.
It is
assumed that a small business such as this, operating with 2-person
installation crews consisting of one electrician and one journeyman, will
begin with three crews. Electricians and journeymen earn approximately
$20/hour and $15/hour, respectively. The work crews should receive a raise
in year two because they will be experienced. A 5% raise would be the
equivalent of approximately $1.00 per hour.
In addition to the work crews, the
business will need a business manager, assumed to be the entrepreneur, and
support staff to work with clients and suppliers. It is assumed that the
business will begin with one
part-time support staff person to perform general bookkeeping and
secretarial duties, who will be paid a wage of $9 per hour.
The
business owner?s salary is equal to the amount of profit after taxes
generated by the company in a year. As a sole proprietor, the business
owner is entitled to withdraw money out of the business throughout the
year as his/her salary. It is important to note that the business owner
cannot withdraw more money from the business than the business has
available. Also, the business owner should try to keep the business? cash
balance at least equal to 100 days worth of operating expenses. It would
be appropriate in this scenario for the business owner to withdraw a
salary of $35,000 from the business.
The
business is required to pay certain federal taxes and benefits associated
with payroll. The company is responsible for paying an amount equal to
6.2% of the employee?s first $84,900 (for 2002) of gross wages for Social
Security, an additional 1.45% on all wages for Medicare, and 6.2% of the
first $7,000 of gross wages for federal unemployment. Consequently, the
figure that appears on the income statement is an estimate based on the
assumptions already made. The business will not be required to pay any
state unemployment tax if all employees are residents and members of the
Navajo tribe.
If the
business owner were to purchase three new work vans (Ford Econoline or
similar) they would cost approximately $81,000 or $27,000 each. It is
currently possible to finance many automobile loans with zero percent
interest. Assuming the business owner is able to obtain zero percent
financing, with a $1,000 down payment, the loan for each van will cost
about $750 per month for 36 months.
Transportation costs are based on the average cost of maintenance and
repairs to own such a work van on a per mile basis, plus the cost of fuel.
The assumption was made that each of the three vans would be driven
approximately 25,000 miles per year. It is important to note that these
estimates are for normal driving conditions. Many of the roads in the
Navajo Nation are not well-maintained causing excessive wear and tear,
which may decrease the useful life of the automobile. The business will
also incur expenses associated with maintaining insurance on the work
vans. Motor vehicle insurance is estimated at $4,000, assuming full
coverage is necessary due to financing requirements.
Depreciation expense is based on the assumption that tools and equipment
have a useful life of seven years, while the trucks or vans have useful
lives of three years and that neither asset has a salvage value. The
amount of depreciation expense presented is an estimate based on the
straight-line method.
The
amount of miscellaneous expenses will vary from year to year depending on
the business? operations. For the first year, the business is estimated to
incur $5,000 in office supplies expense to purchase a computer, a printer,
a desk, and all of the necessary materials to perform the administrative
functions of the business.
If the
business owner obtains a loan to finance the start-up of the business, he
or she will have to pay back the loan plus any associated interest. The
amount of interest paid on the loan for one year will appear as interest
expense on the income statement. The amount shown on the income statement
is an estimate for a 15-year loan in the amount of $400,000 at 7%
interest.
The
business owner is responsible for paying the taxes (both federal and
Navajo business activity) associated with the business. The amount of
federal income tax to be paid will vary depending on the amount of income
generated by the business. The business owner will pay the federal income
taxes on his/her own personal tax return.
The
Navajo Nation business activity tax will be 3% of gross sales. Given the
conditions set forth above, the owner will be in the 39% marginal tax
bracket according to the current federal tax rates. The federal tax
amount shown on the income statement includes the self-employment tax for
social security, Medicare, and federal unemployment.
The
balance sheet shows the company?s assets, liabilities, and owner?s equity
account balances at the end of the year. The account balances are shown at
historical cost for assets and future costs for liabilities (see Appendix
E).
It is recommended that
the business have at least enough cash on hand at any given time to pay
for 100 days worth of expenses. For the first year of business, this is
estimated to be $75,000 based on the assumption given above. The business
should have at least six weeks worth of inventory on hand at any given
time as well. This would be the equivalent of 36 complete systems.
The business? fixed asset account
consists of the assets that are expected to have useful lives beyond one
year. These items are also referred to as capital assets. In the
beginning, the business? fixed asset account will consist of its work vans
and electricians? toolkits. Included in the value of the work vans are the
$1,000 tool racks they must be equipped with. These assets are valued
according to how much they were worth when the business acquired them,
minus any accumulated depreciation. The business may also have other
assets such as accounts receivable and pre-paid expenses, depending upon
the business? financial policies.
The business? liabilities account
consists of amounts that are to be paid in the future for goods or
services the business already received. The note payable for the work vans
is a long-term liability, while the portion of the loan due within the
next year is classified as the current portion of the long-term liability.
If the business owner funds the business start-up with loans, the total
amount of payments remaining at the end of the year will be classified as
liabilities. At the end of the first year of operations, the business
would have long-term liabilities in the amount of $275,000 for the
start-up loan and $51,000 for the automobile loans. It would also have
current liabilities for these loans in the amount of $13,000 for the
start-up loan and $27,000 for the automobile loans. The business may also
have additional liabilities such as accounts payable and wages payable
depending upon its financial policies.
The
owner?s equity account is the difference between the asset account and the
liability account. It reflects the amount of income earned by the business
and the amount of capital invested by the owner. This account also tracks
the owner?s ongoing deposits and withdrawals with respect to the business
(see Appendix F). This account may also be referred to as the net worth of
the business.
Technical
Specifications for Stand Alone Solar Power System
PV-Inverter-Battery Solar System Description
A.- Solar Array
There are 6 solar modules wired 3 in series by 2 in parallel for a rated
power equal to 0.72 KW DC @ 50.4 VDC (rated voltage).
We have specified BP solar modules, model BP SX-120S. This is a 120 watt
multi-crystalline photovoltaic module. For detailed information please
visit:
http://www.bpsolar.com/ContentDetails.cfm?age=38
B.- Charge Controller
This device controls the charge from the PV into the battery bank. We are
using the OutBack MX60 controller which use the MPPT technology (Maximum
Power Point Tracking) enabling your PV system to achieve its highest
possible performance. For detailed information please visit:
http://www.outbackpower.com/MX60.pdf
C.- Inverter-Charger
The FX2024 from OutBack is the newest sine-wave inverter on the market and
leads the way in the next generation of inverter technology. We decided
to include the 2 KW (AC) units in our design in order to offer you a
strong and reliable power system and to provide the customer with the
option to expand the system in the future.
The FX2024 inverter it is designed to survive harsh environments. All
electronics are located in a sealed enclosure and the unit is designed to
be ?field repairable? in the event that a failure occurs.
The battery bank constitutes eight flooded lead-acid batteries, wired 4 in
series by 2 in parallel, 24 VDC. The cell brand and model is Trojan T-105,
respectively, and the total rated capacity for the battery bank is 500 Ah
@ C/100, 12 KW. Spill containment trays are provided for the battery
bank.
For detailed information about T-105 battery please visit:
The electrical equipment (Inverter and controller) are installed on an
OutBack mounting plate. A Power System DC (PSDC) enclosure is located on
one side and a Power System AC (PSAC) enclosure on the other side, laving
the central area of the plate available for the installation of up to four
FX2024 inverters. The MX60 charge controller will be installed beside the
PSDC. A DC Ground Fault Protection System, the PV array breaker and a 175
A DC rated battery breaker will be installed in the PSDC. For detailed
information please visit:
In order to design the system, several assumptions were made on what the
average daily energy consumption will be, based on the initial information
provided by the customer:
Navajo Indian Reservation
Latitude: 35°37’29”, 35.62474
Longitude: 111°15’01”, -111.25053
Altitude: 4360 feet
Extreme condition: 3days without sunshine.
Two systems have been designed on the basis of expected load requirements:
Voltage rating 115V to 120V, 50/60 cycles
Amperage (maximum) 0.9 amps
Est. yearly kwh/year = 419kwh/year ( in term of per day =
1148whr/day)
Compressor details are not readily available.
Lighting for a one bedroom house (Living room /bedroom/ bathroom)
In addition to the above the above system will be able to run the
following:
Personal Computer
Television
Radio
The lights specified for both systems are made with high intensity white
LED?s (Light Emitting Diodes). These units have very low power
consumption (10 mA per LED) and a significantly longer life expectancy
when compared to fluorescent light fixtures. The units operate on 12 VDC,
therefore a 24 to 12 VDC converter will be needed to step down the
voltage.
It is important to note that the actual daily energy consumption of the
loads fed by the system must be near the calculated load in order to
obtain desirable system reliability and operation. This means educating
the system owner on the operational capabilities of their system.
