Ruskin Felix Consulting LLC created a strategy and market feasibility study based on the solar AC – Hybrids for South Africa. The report was based on the present value customer viability. The report highlights the assessment of traditional and hybrid solar power AC usage profitability, cost assessment and market assessment.
The calculations have shown that there will be a significant positive impact if the customer chooses to go for the Solar AC based hybrid system as the net present value of cash flows will be significantly higher in comparison to the existing cost of electricity and lack of efficiency that the existing ACs have in the geographic location. This holds true for other products of Tosca as well and thus a substantial advantage can be given to the end user for the same. Use of the government grant can be used to order the kits in bulk from the Tosca and then be used to increase the margins of the company. An increase in the installation and kit price can also be looked at to increase the expected sales revenue and turnover.
Focus Market (Target): The market is very focused on the BTU 18000 version so that should be the product focus in different variants for the company as well. This should be done as the variant involves 63% of all sales in the region. Hybrid systems will also add further add value to the customers because of the water heating facility as well. Large custom orders like in schools and hospitals should be done for the Central cooling versions of the 36000BTU and 48000 BTU.
The market is ripe for such a product as the efficiency and SEER rating of most ACs in the region are very low and thus this will provide as a very good product for the market. For the price sensitive customers, it is to be expressly stated to them that the increased price differential will be set off by the savings in energy costs in the first year itself and hence will be extremely useful and profitable for the future.