COSOL Equipment Suppliers
HOW TO BECOME AN EXCLUSIVE EQUIPMENT SUPPLIER OF A COSOL RENEWABLE ENERGY PROJECT?
COSOL is a Brazilian online marketplace of shared renewable energy projects where anyone can acquire a PV lot and rent it to an energy consumer for a monthly fee, enjoying healthy returns (4 years payback typically). Energy consumers can benefit from up to 20% energy cost reduction as a result of renting a PV lot and generating solar electricity. The challenge is reaching these clients with marketing.
COSOL´s business model is sharing marketing costs between the interested suppliers and EPC.
As a future supplier you could bid for one of our 5 MW projects as an exclusive sponsor. Based on your future revenue, as a percentage of the whole PV plant, you would participate in the marketing budget of that particular project. Hence, you will have reasonable profits one the project gets financed.
BUSINESS DEVELOPMENT PROCESS
Bidding & Contracting
- COSOL starts a new project, typically a 5 MW renewable power plant in a Brazilian State.
- The project is published on COSOL´s website.
- Project developers, EPCs and Equipment suppliers offer bids for participating in the project.
- Each bid is evaluated based on its cost benefit ratio, quality, guarantee and maintenance terms.
- COSOL notifies the winning bidders and presents the marketing plan and budget.
- The marketing budget is shared among the participants in percentage of their future revenue of the project.
- All interested parties sign an exclusive participation contract and approve the marketing plan & budget.
- The participating companies transfer the marketing funds and COSOL executes the pre-approved marketing campaign.
- COSOL attends the investors and energy consumers who were attracted by the advertising.
- COSOL closes the investment and rental contracts charging reservation fees.
- A Special Purpose Enterprise (SPE) is founded, owned by the consortium of the new investors.
- The SPE initiates the development of the project (site selection, permits, due diligence) using the fees collected.
- Once the project has been presented, investors transfer the funds of the construction to the SPE in 5 stages.
- The EPC starts constructing the power plant using equipment supplied by the companies who financed the marketing plan.
- Once the equipment is supplied the invoice is paid immediately to the supplier from the SPE´s account based on the initial contract.
The initial marketing investment is estimated to be around 3 - 5% of the future revenue of the supplied equipment.
5 MW PV Power Plant in Bahia
Total cost: R$ 25 000 000,00
Inverter cost: R$ 2 500 000,00
Inverter supplier´s revenue participation percentage: 10%
Total project marketing budget: R$ 1 000 000,00*
Inverter supplier´s marketing budget participation: 10%
Inverter suppler´s marketing budget: R$ 100 000,00
*4% of the total project budget
Therefore with a marketing investment of R$ 100 000,00 the equipment manufacturer could sell R$ 2 500 000,00 worth of equipment to the project on an exclusive contract.
*figures and values just as illustration.