introduction to rec and how to promote commercial solar
DESCRIPTION
Guido Breens from REC give tips on how to promote REC products to your customers and his personal experience of selling solar PV to commercial customers.TRANSCRIPT
REC Presentation
Eden Event with Alternergy
Guido Breens
7 August 2014
2 © 2013 REC All rights reserved.
REC is a strong and reliable partner
Established in 1996 in Oslo, Norway
Set up 2 business activities: – Silicon business (chemical industry)
– Solar business (wafers, cells, modules)
– Successful IPO of REC solar division – October 25
2013
REC Solar key facts:
A leading global solar company
Around 1600 employees
Worldwide generated revenue USD
647 million in 2013
Financially strong position – Debt-free
More than 200 patents granted or
pending
Worldwide customer base
3 © 2013 REC All rights reserved.
Integrated manufacturing facility in Singapore
Wafer Module
Slurry recovery Compressed air plant
Waste water treatment Chiller
Utility center
Cell
US 2.0bn invested into the world’s
largest integrated manufacturing
facility in Tuas, Singapore
Automated Toyota lean manufacturing
methodology
2 p-type multi crystalline wafer
factories
6 fully-automated cell lines
Module capacity of 910MW; 4 highly
automated module lines
Pre-invested in capacity on utilities
and infrastructure, allowing for
increased production without further
infrastructure investment and lead
time
Transport costs avoided through
integrated manufacturing and
production line proximity resulting in
cost saving
Overview of production facility Description
4 © 2013 REC All rights reserved. Confidential
Net debt / Net cash postion
In USD million (EUR million)
REC Solar is debt free and holds a net cash postion,
which is rather an exception
-815-702-597
-233-143
67
-820-592-549
-1,973
-1,066
1,541
Source: Company websites
(1119) (49) (-104) (-169) (-399) (-430) (-509) (-592) (-595) (-1433) (-434) (-775)
Chin Comp Chin Comp Chin Comp Chin Comp Chin Comp Chin Comp Chin Comp Chin Comp US Comp US Comp Eur Comp
5 © 2013 REC All rights reserved. Confidential REC Market Intelligence
Debt / Equity Ratio(1) comparison of REC peers
Quarterly; Ranking based on Q4 2013
(1) D/E= (short-term debt + long-term debt) / total shareholders equity; Calculation incl. bonds payable, notes payable and convertibles as part of debt; (2) Negative equity occurs when the
value of an asset used to secure a loan is less than the outstanding balance on the loan; Source: Companies’ statements
REC Solar is debt free competitive advantage
At factor above 1 it gets difficult to get new loans
Many Chinese companies are in the danger zone
Some leading Chinese companies have debts ratio above 5, only
possible as long as backuped by goverrrment
Some well known companies have negative equity value or virtual
insolvent
ESTIMATES; BASED ON PUBLIC DATA
5.1
0
2.7
0
3.3 3.3
2.3
5.4 5.2
4.3
0.1
3.0
4.4
3.9
0.8
2.0 1.9
2.6
1.3
1.3
1.5
2.7 2.8
0.9
4.0
1.6
0.9
3.7
0.7 0.1
0.2
0.1
5.5
6.9
REC Solar is debt free, which is a competitive advantage
compared to the majority of peers
Q3 2013 Q2 2013 Q1 2013 Q4 2013
8.7
106.6
8.5
12,0
26,9
2.7
US Comp
Chin Comp
Eur Comp Chin Comp Chin Comp Chin Comp Chin Comp Chin Comp Chin Comp Chin Comp US Comp
6 © 2013 REC All rights reserved. Confidential
REC Peak Energy Series
REC Peak Energy
- 60 cells per panel
- Silver colored frame or black colored frame
- Panel dimensions:1665 x 991 x 38 mm
- Temperature co-efficient of Pmpp -0.40% / °C
- Performance under part load (97% of STC
efficiency at 200 W/m2)
- Watt classes 250–265 Wp: 0/+5 W (0/+2%)
- Max voltage 1000 V (600 V US)
- Multi-crystalline cells: 156 x 156 mm - 3 Bus Bar cells
- 38 mm (1.5”) mm frame
- 3.2 mm solar glass
- 18 kg (40 lbs)
Junction Box and connector
- IP 67, fully potted Junction Bow
- Original Multi Contact MC4 connectors
7 © 2013 REC All rights reserved.
REC applies high quality standards in its manufacturing
Major design changes undergo an extended qualification process, where panels are
tested beyond normal industry standards
This extreme testing ensures panels can perform in the most severe environments,
ensuring increased reliability
x 2
2 x Test
Flash
Mechanical Load
Damp Heat
Thermal Cycle
Humidity Freeze
Flash
Combined Cycle Test
x 2
8 © 2013 REC All rights reserved.
REC has achieved low product claim rates,
demonstrating the quality of its modules
Claim rates at REC (PPM)
Dedicated team handles claims from the field
Analysis of claims helps improve product quality
Parallel feedback process in place to handle non-claim issues
75 98 93
37 49
25 39
127
53
1900
3800 3400 2900 3300 2000 1800
3500 4500
11500 11400
28800 18000 14500 16300
8800 10100
4300
1
10
100
1000
10000
100000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2012 2013 2014
REC SunPower First Solar Source: Warranty Week (http://www.warrantyweek.com) Competitor
A
Competitor
B
9 © 2013 REC All rights reserved. Confidential
This quality control leads to:
Environmental and Quality Standards
REC Wafer (Singapore)
– ISO 9001
– ISO 14001
– OHSAS 18001
REC Cells Pte Ltd (Singapore)
– ISO 9001
– ISO 14001
– OHSAS 18001
REC Modules Pte Ltd (Singapore)
– ISO 9001
– ISO 14001
– OHSAS 18001
– UL Factory inspection ( Quarterly)
– TUV Factory inspection ( Yearly )
– JET Factory Inspection ( Yearly )
– MCS Factory inspection ( Yearly )
Third party audit reports
– Mott MacDonald
– Black and Veatch
ISO 9001:2008
Quality Management
ISO 14001:2004
Environmental
Management Systems
OHSAS 18000:2008
Occupational Health &
Safety Management
Zero non-conformance findings
by SGS for two consecutive years
10 © 2013 REC All rights reserved.
Installations with REC panels perform better than
PVSyst benchmark
Germany – 5.7 MW
UK – 5 MW
US – 1.5 MW
76
78
80
82
84
86
88
PR
(%
)
Month
Actual PVsyst
2013 2014
Singapore – 150 kW
0
20
40
60
80
100
PR
(%
)
Month
Actual PVsyst
2013 2014
88,0 88,4
86,8
90,6
84,1
85,5 84,6
88,7
75
80
85
90
95
2011 2012 2013 2014
PR
(%
)
Actual PVsyst
91,7 91,9
88,1
75
80
85
90
95
Feb '14 Mar '14 Apr '14
Past 3 Months
80,4
86,2 86,4 86,4
79,2
81,8
84,3 84,4
75
80
85
90
95
2011 2012 2013 2014
PR
(%
)
Actual PVsyst
92,7
91,0 90,4
75
80
85
90
95
Feb '14 Mar '14 Apr '14
Past 3 Months
Non-operational periods are not considered in yearly data.
11 © 2013 REC All rights reserved. Confidential
The REC Solar Professional installer Program
Selected installers that share our values
and sell REC as first brand
Special benefits:
2 years extra warranty
Service fee during first 5 years
Extensive marketing support
Special training event
Access to installer portal
REC Marketing & Print Shop
Flash data database
Warranty claims and
panel registration
Training videos
12 © 2013 REC All rights reserved.
My experience in rooftop in Belgium as installer
I worked 3 years for an installer/EPC in Belgium as Sales Manager for the commercial
rooftop projects. ( total sales of approximately 30 MWp)
2 business models:
investment by enduser: we offered project + maintenance and monitoring
rent the roof of the enduser we offered lower priced electricity without investment
Essential to win the deal in Belgium was:
1 stop shop principle.
Detailed plans of installation ( roof plan / inverter plan / connection to existing
electricity )
Engineering knowledge, track record , motivation of chosen technology
Detailed financial calculations ( investment/ yearly revenue/ ROI/) including the
calculation of tax and of amortisation.
Yield/ electricity production warrantee
Use well known brands and bankable modules
Take away each bottleneck (e.g. Compatibility with roof or upgrade of grid connection
capacity, ... Any (false) risk that comes up)
Analyse the decision taking process in the company and approach in time CEO/CFO.
13 © 2013 REC All rights reserved.
My experience in rooftop in REC
I work since 2 years for REC.
Realisation of rooftop in Belgium/Netherlands and UK:
E.G. Audi Project in Belgium (2,3 MWp)
Heineken Project in the Netherlands ( 921 KWp)
Several smaller projects in the 3 countries.
The benefits for REC:
European company with production in a high tech country Singapore
High Quality (delivered always from same factory)
High yield (use PVSYST or PVSOL analysis to proof it to customer).
Bankable because of financial strength and high product quality
Reliable delivery from stock in Europe
Product warranty and production warranty backed by REC Singapaore ( asset !)
Partner and REC Certified Installer Program
Many references in the UK in residential, commercial and big utility ( plus 100 MWp last 12 months)
Best target Group are the companies with a high electricity bill that do care
about 20 years of high production and are sensitive for cost saving and image.
– Garages, warehouses with cooling, supermarkets, agriculture, small/medium
enterprises privately owned.
