KCGN SolarFix story and ethos
Founded in 2013, this proudly South African-owned company based in Gauteng provides preparation, solar system design, and various types of photovoltaic technologies, system balancing, and after-sales operation. Most notably for the purposes of this business plan, the organization specializes in independent power production (IPP) and has successfully executed similar projects in regions such as China, India and Mexico as well as a project in Northern Cape South Africa (BusinessTechSA, 2013).
KCGN Solarfix has established itself as a pioneer in the provision of cost-effective renewable energy components and solutions to the African continent. “Our values are deeply rooted in our company’s history’’. Our ultimate goal is to become a fully integrated renewable energy company that specializes in photovoltaic and other green clean energy technologies in Africa.
To apply this motto in our interactions with our clients, we behave with dignity, honesty, and justice. Our company’s reputation is built on providing excellent customer service, and we strive to make every customer interaction friendly and effective. We give our employees the opportunity to reach their full potential by ensuring quality leadership, rewarding outstanding performance, and encouraging innovation.
The KCGN Solarfix base is comprised of six imperatives
- Create a research and development program to verify and expand existing renewable energy technologies.
- Define the consumer niches where we will be the most well-known brand.
- Create and sell creative, high-value goods that meet our customers’ needs.
- Align our internal processes and procedures so that we can work as a team with our customers while staying within regulatory limits and keeping accurate records.
- Encourage our employees’ creativity, superior results, and self-development as partners in a caring yet ambitious business.
- Achieve market-related returns and draw additional capital to invest upstream in the supply chain to lower the cost of sustainable technology and ensure future supplies.
Why renewable energy is the future for South Africa
The amount of carbon dioxide emitted by coal-fired power plants in South Africa is alarming. As a result, more renewable energy is being added to the country’s electricity mix (Earthhour, 2016). Averda (2010), on the other hand, claims that solar energy is now a feasible type of global energy, and that renewable energy solutions will supplant coal and gas energy solutions by 2030. In the future, it is predicted that technological advancements will transform solar into a more cost-effective solution, making it the most widely utilized kind of energy on the planet.
KCGN SolarFix is proposing the construction of a commercial solar energy power plant with a capacity of 75MW on site in the KwaZulu-Natal. The required project size according to the instructions given by department of Mineral Resources and Energy (DMRE) for Solar PV is 75 MW, as such the scope of this project will be limited to fit this requirement (Ipp-renewables.co.za, 2021).
This facility’s primary objective is to produce electricity from a renewable energy source (solar radiation) and feed it into the national power grid. The planned construction site is situated in the uMgungundlovu Municipality district of the KwaZulu-Natal Province. This region has been chosen because the global irradiation is between 2400 and 2600 kWh/m2 (Mutombo, Marc-Alain & Numbi, 2019).
The organization proposes to construct a commercial solar energy facility called the Spotless Energy Project, which will be run by KCGN SolarFix. The proposed facility is expected to produce about 75MW of electricity, which will be fed into the national grid. The power plant itself will be made of 312,504 solar modules spread over 112 hectares. It will produce 160,000MWh of energy a year, which is enough energy to power an estimated 36 000 homes in South Africa.
In the long-term this project will do the following:
- Increase the country’s generational capacity
- Employ over 500 people in its lifespan
- Decrease South Africa’s overall carbon emissions
- Collaborate with local communities and social and economic initiatives in areas such as education and health
- Work with its environment for sustainability
How the solar power facility will operate:
PV panels transform sunlight into direct current (DC) electricity. By way of a network of cables, the collection of panels is linked to an inverter (McFadden, 2021). The grid-tied inverter converts DC power to alternating current (AC) power that can be connected to the national grid. By using a transformer, the voltage at which power is produced is stepped up to the appropriate voltage and frequency of the national grid. The electricity is transmitted to the nearest Eskom Substation via distribution lines from the onsite transformers (Kanhukamwe, 2019). The electricity is pumped into the Eskom grid from the Eskom substation.
Horizontal trackers are a form of proposed solar PV tracking technology, the use of which sets this organization apart from its competitors. Horizontal trackers are ground-mounted solar PV panels that follow the sun’s path using single-axis technology to maximize the amount of direct sunlight on the panels (PVPerformance modeling Collboraive, 2021). The system’s primary input is sunlight, which is transformed into electricity. To maximize the amount of direct sunlight on the solar PV infrastructure, the facility also uses auxiliary electricity from the Eskom grid to power tracker motors.
A collection of solar PV arrays and inverters, internal electrical reticulation, and an internal road network are all expected to be built as part of the proposed infrastructure. A distribution line will be constructed to transport the produced electricity from the site to the existing Shell Edwin Swales Eskom substation.
Figure 1: Typical Solar PV Plant diagram
KCGN Solarfix has established itself as a as a pioneer in the provision of cost-effective renewable energy components and solutions to the African continent. It is this message that will be communicated to South African’s within the municipality and nationally.
Moreover, the marketing plan will highlight the urgent need for a shift towards renewable energy because of climate change and that the catalyst for this shift is the energy crisis in South Africa. Additionally, it will position itself as uniquely qualified to solve this issue because of our significant experience and expertise in this field. Therefore, our target market will be will be South Africans within the uMgungundlovu municipality district and the scenic audience will be the wider South African population.
Other solar independent power production companies are the main competitors for this project. Specifically international firms that have settled in South Africa to provide independent power plants that produce and store renewable solar energy for example SAREC, EXXORO, AGE technologies (Profiling five of the top energy companies in South Africa, 2021).
Our organization provides a similar service however it makes use of horizontal trackers are a form of proposed solar PV tracking technology power plant. Moreover, this company has a unique position in that it is a company that is founded by those who intimately familiar with the challenges created by the energy crisis in this country. As such, the company is aware of the South African social, political and economic climate and seeks to actively contribute to solving this problem.
SALES AND MARKETING STRATEGIES
Newspaper ads will be used to reach the older generations and digitised version will be made accessible to South African internet users. As well as television and radio adverts will be used to appeal to the wider market of South Africans.
Digital media will be used to market our solar panels by using platforms such as Instagram or Facebook and using social media influences such as Arik Ring (@arikring}. He specializes in areas such as solar and power systems, making him reliable as he has experience in promoting solar. (Biggest influencers in solar in Q2 2020: The top companies and individuals to follow, 2021).
There will also be in person advertising at different venues and staff will be there to physically market our product and answer any queries.
Sales projection over the period of 8 months from June 2021 to February 2022
Projected sales – R4800 000 000.
Marketing funds – R10 000 000
Expenses – R3 437 016 670
KCGN Solarfix is proposing to construct a commercial solar energy facility with a capacity of 75MW on a site in KwaZulu-Natal as an Independent Power Producer (IPP). The aim of this is to describe the various components of the facility and to provide a clear picture of its operation and possible environmental impacts. The construction site is in the KwaZulu-Natal Province’s uMgungundlovu Municipality. Despite the existence of a rival, Ecoefficiency, we believe our products and services will continue to be in demand.
Word of mouth, digital media, and newspaper ads are all part of our marketing strategy. Materials for product manufacturing are needed, and we will enlist the help of a large social media influencer known as Arik Ring (@arikring) for advertisement and promotion. KCGN SolarFix will require R3 437 016 670 in expenses, with SAREC investing R128 809 167. From June 2021 to February 2022, sales are expected to reach R4 800 million. This translates to a projected net profit of R1 362 983 330. KCGN Solarfix, a renewable energy engineering company, was mainly responsible for putting this section of the study together.