cash flow & competitive analysis + 5 yr financial model
Do a competitive CASH FLOW ANALYSIS on buying and running a generator vs solar energy over the next 5 years. Have them do best case, worst case and base case and to let you know what all the assumptions are for the best, worst and base cases (ie fuel costs, difficulty getting fuel, difficulty getting paid the feed in tariffs from the electricity company if they can't get paid by Volta). These should look at how much energy a small, medium and large business would use vs how much they could generate from putting solar panels on their roofs. Same with apartment building owner and single family houses. To do these estimates, they will need to get estimates on how much electricity the average small, medium or large business, single family home and apartment building uses, and guestimate the amount of roof space available for solar panels. I can provide information on how much electricity can be generated from a given amount of square feet (or square meters) of space.
b. Competitive analysis on other solar options – who else is trying to do what you are doing that is not on the internet? Find out about costs for various projects to find out what the your competition is doing.
c. Find out all the projects, grants, tax breaks and programs in Ghana to support businesses and residences to install solar.
d. Market sizing. How many small, medium and large businesses in Accra? How many apartment buildings, how many single family homes in Accra? What is the average size of the installation for each of these? What percent of the market can you reasonably be expected to get?
e. Create a 5 year financial model for the business of selling solar projects to businesses and residents in Ghana. This will include both revenue forecasts, costs of goods sold, operating expenses, taxes, staffing costs, and any other business costs. Have them do best case, worst case and base case and write down / describe what all their assumptions are.
f. As part of the 5 year financial model, have them do a valuation of the business using the Discounted Cash Flow analysis and the First Chicago Method (where they estimate the valuation of the business based on the best, worst and base case).