The project earns for twenty years. The cash goes out in the first two.
A solar plant, a wind project or an infrastructure asset is mostly capital: land, equipment, construction and finance cost before the first rupee of revenue. Its returns depend on assumptions about generation, tariffs, payment discipline and interest rates that lenders and investors will test hard.
One renewable energy client has worked with us since the day it was incorporated:
Lavancha Renewable Energy Pvt Ltd was incorporated in Jan 2013. Since incorporation we have been associated with SOATECH SOLUTIONS. It’s been extremely delightful customer service from Mr. Sharad and his staff at SOATECH. Especially for a Start-Up company they have been extremely co-operative and friendly during every interaction.
Quoted word for word from our clients. Some quotes use our former name, Soatech.
Follow ₹15 crore of annual revenue through a typical solar EPC company
Here is the cash cycle of an illustrative solar EPC company building rooftop and ground-mounted plants:
At ₹15 crore of sales a year, 90 days means about ₹3.7 crore is permanently tied up in the cycle. That is what your bank limit and your own capital are really funding. Get milestone payments 15 days sooner and about ₹62 lakh comes back, with no new loan and no new customer.
Illustrative composite figures, not a client's. Your own cycle comes straight from your balance sheet: stock, receivables and payables, each divided by a day's sales or purchases.
Six money problems specific to renewables and infrastructure
Capital before revenue
Projects need equity and debt long before they earn. We build the funding plan and keep it current.
Project models lenders trust
Generation, tariff, degradation and finance assumptions all get tested. We build models that survive diligence.
Subsidy and incentive timing
Incentives and subsidies arrive on others' timetables. We forecast them conservatively and claim on time.
Equipment price and currency
Modules and inverters move in price and are often imported. We track the exposure from quote to purchase.
Customer payment discipline
Power buyers and project clients pay late. We track receivables and build delays into forecasts.
Finance set up from day one
Startups in this sector need proper books, compliance and investor reporting from incorporation. We set it up.
Want a CFO to look at your numbers?
A senior CFO reviews your figures with you and shows you where to improve. No cost, no obligation.
How we keep renewable projects funded
Project models and funding plans
For every project and for the company.
Milestone billing and receivables
Advances and milestones agreed and chased.
Lender and investor reporting
Covenants, budgets and progress, on time.
Incentive and subsidy tracking
Claims, approvals and expected receipts.
Finance and compliance from incorporation
Clean from the first day.
Check your own numbers
Build a 13-week view of project cash:
Ask CFOAvatar about your projects
What clients say
Some of the businesses we work with.
You have planned to set goals along with me and have been proactive in ensuring that we reach milestones as planned. In the event you depended on me for my inputs or consent, you have been prompt and caring in ensuring that we do not waste time.
They have facilitated us in putting both process and financial systems in place as well as take some very difficult but required decisions. We are indeed pleased to record our appreciation of their individualized, friendly and timely support in our activities during the course of their association.
Quoted word for word from our clients. Some quotes use our former name, Soatech.
Questions owners ask us
When should a renewable energy startup get a CFO?
From incorporation. Clean books, compliance and investor reporting are far cheaper to build than to repair, as Lavancha Renewable Energy found by working with us since 2013.
Can you build a project finance model?
Yes. We build project and company models with generation, tariff, cost, tax and funding assumptions, and support you through lender diligence.
Do you work with solar EPC companies?
Yes. We cost each project, plan equipment purchases and milestone billing, and forecast cash.
