PART 1
SOLVALLEY ENERGY: SOLAR PARTS AND SERVICES
Business Location: CARIG SUR, TUGUEGARAO CITY, CAGAYAN
Name of Proponent: INIGO VERGARA, JASTER DINGIL, JOHNMER ALLAM, JOHN
PHILIP LOSAURA, JOHNREY BUMATAY
Business Status: NEW TYPE OF BUSINESS
Background/Rationale
1. The owner wants to set up this solar components and services company in order to take
advantage of the expanding market demand for clean, affordable energy. With growing
climate change awareness and rising electricity bills, there is a significant market
opportunity for solid solar products and quality installation and maintenance services. In
addition, the owner, who is an electrical studies graduate, has a passion for renewable
energy and aims to use technical expertise to advance clean energy solutions while
generating employment and educational opportunities for other electrical students and
graduates.
2. Upon establishment, the suggested solar business venture will offer the owners a
sustainable means of income via the sale, installation, and servicing of solar products. It
will also generate job opportunities for electrical students from relatives, friends and even
the students of CSU CARIG ELECTICAL MAJORS, fostering skill acquisition and
financial assistance in the community. With increasing demand for renewable energy, the
company provides long-term stability and room for growth, enabling the owners to make
a solid mark in the green energy industry.
3. Other Advantages of the Business Proposed: In addition to personal benefit to the owner,
the proposed solar equipment and services company will have the following beneficial
impacts on the neighborhood community and local economy:
a-Opportunities in Employment: The business will generate employment opportunities
for qualified and semi-qualified manpower, particularly electricity students and
neighboring technicians, alleviating unemployment, and offering practice experience.
b-Employment of Local Suppliers and Supplies By procuring tools, installation materials,
and fundamental components from local hardware stores as well as local manufacturers,
the company will provoke the local supply chain as well as enhance the small-scale
industries.
c- Access to Clean and Affordable Energy: Most rural or under-served communities lack
regular access to electricity. With this business, alternative energy options can be
provided, enhancing the living standards and complementing economic activities such as
small enterprises, agriculture, and schools.
d- Environmental Sustainability Encouraging the utilization of solar energy minimizes
the reliance on fossil fuels, decreases carbon emissions, and supports environmental
conservation and climate change adaptation. D-Educational Impact: The company can act
as a learning center for electrical students, providing them with practical experience and
internships. This aids in skill development and assists future professionals in the
renewable energy industry.
e- Innovation and Awareness: With solar technology made more visible and accessible
through the business, it promotes awareness of renewable energy to the community and
inspires other environmentally friendly ventures.
f- Local Availability of Solar Products and Services: Where solar components and
services are not yet widely established, the business steps into a market gap, making
importation or long-distance travel for solar solutions unnecessary.
PART 2
A-
The business proposed is mainly a service business, with trading elements. It will
specialize in offering solar energy solutions by selling (retailing) solar components—such
as panels, inverters, charge controllers, and batteries—and providing installation,
maintenance, and repair services to both residential and commercial customers.
Moreover, the company promotes sustainable development through its promotion of the
utilization of renewable energy, which comes from our natural capital—the sun—hence
indirectly being linked to the manufacturing sector as well. Nonetheless, its main
activities involve services and retail trade, adding to both the green technology and
energy sectors.
VISION
To become a trusted force in advancing clean energy by delivering high-quality solar
solutions and services, while fostering local innovation, empowering skilled
professionals, and contributing to a more sustainable and resilient future.
MISSION
Our mission is to provide reliable, affordable, and sustainable solar energy solutions
through quality products and professional services. We are committed to empowering
communities, supporting local talent, especially electrical students and promoting
environmental responsibility by making clean energy accessible to all.
GOALS
Provide Quality Products and Services: Supply and install consistently high-
quality, dependable solar parts and systems to satisfy the energy requirements of
residential and commercial customers.
Encourage Renewable Energy Awareness: Raise community awareness about the
advantages of solar energy and promote the use of clean, renewable power
alternatives.
Support Local Employment and Skill Development: Create job opportunities and
practical training for electrical students, graduates, and experienced workers in the
community. Be Financially Sustainable Create consistent revenue through retail
sales, installations, and maintenance services while being cost-effective and
profitable.
Increase Market Reach: Create a solid customer base in the local community, with
expansion plans to cover neighboring towns and under-served communities.
Form Strategic Alliances: Establish relationships with local suppliers, schools,
and government agencies to support business operations and community outreach.
Encourage Environmental Responsibility: Help decrease carbon emissions by
promoting the utilization of solar power more than traditional fossil fuels.
Ensure Customer Satisfaction: Provide high standards of service and excellent
after-sales service to establish trust, loyalty, and long-term relationships with
customers
OBJECTIVES
1. Grow Customer Base by 20% in the First Year: Grow the number of
residential and commercial customers by 20% by focused marketing and
word-of-mouth recommendations.
2. Maintain 95% Customer Satisfaction Rate: Deliver top-notch service and
support to customers, with a goal of 95% satisfaction rate through surveys and
feedback, to ensure high-quality installations and prompt maintenance
3. . Cut Solar System Installation Time by 15% Within 6 Months: Enhance
operating effectiveness and decrease installation time via optimized processes
and training, bringing solar installations within reach and efficiency for
customers.
4. Offer Training to 30 Electrical Students per Year: Offer internships,
workshops, and on-the-job training to a minimum of 30 electrical students or
graduates annually, developing the future generation of solar energy experts.
5. Form Partnerships with 5 Local Suppliers within the First Year: Establish
strategic alliances with regional suppliers of solar equipment and materials to
support the domestic economy and save on supply chain expenses.
6. Attain Break-Even Point in 18 Months of Operation: Attain financial break-
even in 18 months through consistent improvement in sales, prudent cost
control, and efficient acquisition of customers.
7. Implement a Community Awareness Program on Solar Benefits by the End of
Year 1: Create and execute an educational campaign raising awareness of the
environmental and economic benefits of solar energy, such as among local
communities, schools, and businesses.
8. Add 2 New Solar Product Lines or Services Within 2 Years: Diversify the
offerings by introducing new solar technologies or services, like energy
storage facilities or cleaning of solar panels, within the first couple of years.
9. Cut Operational Expenses by 10% Within 1 Year Find and institute cost-
cutting techniques in business functions—like optimizing supply chains or
minimizing energy consumption—without jeopardizing service quality.
MARKET STUDY
1. MARKET DESCRIPTION
- Solarya: Solars parts and Services operates as a regional provider within the Cagayan
Valley, with to deliver solar products and services across all municipalities.
2. TARGET MARKET
- in order to have a clear approach to the target market, Solarya: Solars parts and
Services can classify its clients in several categories. Such as residential costumers,
commercial customers, and industrial costumers.
3. SUPPLY SITUATION AND PROJECTED DEMAND
- There is still a limited supply of solar panel systems in the Cagayan Valley area, with
only a few small-to-medium-sized enterprises actually offering solar products and
services. The majority of the solar technology used, such as panels and inverters, is
imported and shipped either from local hardware providers or directly procured from
leading distributors in Metro Manila. Domestic fabrication of solar panels does not exist,
leaving the area very much dependent on imported goods from sources such as China,
Japan, and Europe. Government support is increasing incrementally, however. Projects
launched by the Department of Energy (DOE) and local government units have promoted
rural electrification through the use of renewable energy, particularly in far-flung
barangays.
The need for solar energy systems in Cagayan Valley is increasing fast because of some
important factors. Exorbitant electricity rates in the area are encouraging households and
enterprises to find cheaper alternatives. Furthermore, since Cagayan Valley is mostly an
agricultural province, solar-powered irrigation, cold storage rooms, and post-harvest
facilities become a necessity for farm communities. Off-grid as well as geographically
remote areas are also a huge share of the market since these communities do not have
access to the primary power grid or experience frequent power outages. Urban household
consumers in cities such as Tuguegarao and Santiago are also becoming more interested
in rooftop solar installations, particularly with the assistance of net metering policies.
The demand for solar panel systems in the region is forecasted to increase by around 12
to 15 percent each year. This expansion is consistent with the objectives of the Philippine
Energy Plan, which targets an increased contribution of renewables to the country's
energy mix by 2030. With increasing awareness of the long-term advantages and cost-
effectiveness of solar power, demand is expected to double over the next five to ten
years. This is a significant opportunity for businesses and entrepreneurs to fill the gap in
the market. There is a significant demand for local providers that can provide high-
quality, affordable solar products bundled with professional installation and good after-
sales service, especially in underserved municipalities and rural areas.
4. Supply Situation and Projected Supply
Supply Situation and Future Supply (Cagayan Valley Region – Solar Panel Business)
Since there are no official statistical figures available for Region II, we estimated the
solar-related business supply capacity based on local observation in the market,
interviewing local installers, and public business listing. Current Supply Situation (2024
Estimate – Cagayan Valley) Cagayan Valley, which includes the provinces of Cagayan,
Isabela, Nueva Vizcaya, Quirino, and Batanes, is experiencing rising demand for solar
energy systems with rising electricity prices and good climatic conditions (high solar
irradiance). There are around 5 to 10 active solar installers in the area, who are mostly
small to mid-scale businesses. Typically, a local installer within the area can
accommodate 100 kWp to 300 kWp of solar projects every year. Altogether, the region's
present overall solar supply/installation capacity is appraised at 1.5 to 2 MWp annually
(residential, agricultural pumps, and small commercial projects). Most suppliers obtain
their solar panels and inverters from Manila-based distributors or directly import from
Korea or China. Local stock and warehousing are low, and hence longer project lead
times. Projected Supply Capacity (2025–2027) With increasing knowledge of renewable
energy, the local supply capacity is anticipated to rise progressively over the coming
three years:
2025: Estimated total supply capacity can go up to 2.2 to 2.5 MWp/year due to new
players and development of local electricians into solar installers. 2026: Capacity can be
expected to reach 3.0 to 3.5 MWp/year, with local governments and cooperatives likely
to adopt solar for public facilities. 2027: With possible national and LGU incentives,
capacity can increase to 4.5 to 5 MWp/year, including community-level installations and
solar-powered agriculture projects. Opportunities There remains a large supply-demand
gap in the region, particularly in off-grid barangays, agricultural communities, and
medium-sized enterprises. This provides a high potential for a new entrant to provide
dependable, locally rooted services with lower lead times and affordable after-sales
support.
5. Demand-Supply Situation, Projected and Market Share
- The existing supply of solar panel systems in the Cagayan Valley area
is still limited, with only a few small-to-medium enterprises actively
offering solar products and services. Most solar technology, such as
panels and inverters, are imported and distributed either through
local hardware suppliers or directly from major distributors in Metro
Manila. Local production of solar panels is zero, and the area is
therefore highly dependent on foreign imports, mainly from China,
Japan, and Europe. Government assistance has been consistently
rising, though. Initiatives by the Department of Energy (DOE) and
local government units have promoted rural electrification through
renewable energy, particularly in far-flung barangays.
Solar energy systems in Cagayan Valley are in high demand, and this
is increasing very fast for a number of major reasons. The high cost of
electricity in the area is driving residential and commercial consumers
to look for cheaper options. Furthermore, since Cagayan Valley is a
primarily agricultural area, solar-powered irrigation systems, cold
storage facilities, and post-harvest structures are becoming crucial for
farm communities. Off-grid and remote locations also account for a
major chunk of the market, as these communities have either no
access to the primary power grid or experience frequent power
outages. Urban households in cities such as Tuguegarao and Santiago
are also increasingly expressing interest in rooftop solar installations,
particularly with the backing of net metering policies.
Demand for solar panel systems in the country is forecasted to
increase by about 12 to 15 percent each year. This growth is in
support of the Philippine Energy Plan vision of a higher penetration of
renewables in the country's energy mix by 2030. With increasing
awareness of the long-term advantages and cost savings of solar
energy, demand will likely double within the next five to ten years.
This offers a large opportunity for local businesses and entrepreneurs
to bridge this gap in the market. A strong demand for local providers
to provide affordable and high-quality solar products with expert
installation and proper after-sales care exists, mainly in underserved
municipalities and in rural areas.
6. Marketing Strategies
Community outreach in rural municipalities
Social media and radio promotions
Partnerships with LGUs and cooperatives
Free demo installations for barangay halls and schools
Direct sales through on-site consultations
Online inquiries via company website/Facebook
Retail space/showroom in Tuguegarao City
7. Selling Price
Product Price
Off Grid Set Up P100K-P1.5M
Grid-Tied Set Up P150K-P1.5M
Hybrid set up P300K-P3M
8. Projected Sale
YEAR UNIT SOLD OR PRICE OR FEE PER TOTAL SALES OR
CLIENTS SERVED UNIT REVENUE
1 30 OFF GRID SET P3M P3M
UP
2 30 OFF GRID SET P3M & P3M P6M
UP & 20 GRID TIED
SET UP
3 20 HYBRID SET UP P6M &P3M P9M
& 20 GRID TIED
SET UP
4 15 HYBRID SET UP P4.5M P4.5M
5 50 OFF GRID SET P5M & P3M P8M
UP & 10 HYBRID
SET UP
C. TECHNICAL STUDY (PRODUCTION AND OPERATION)
1. Manufacturing/Operation Process
Step 1: site visit and planning
Step 2: preparing materials
Step 3: installing and testing
2. Production size and operating schedule
On the basis of target market analysis, SolValley Energy will target residential, agricultural, and
small commercial customers in Cagayan Valley. The company will start with rooftop installations
and off-grid/hybrid/grid-tied solar kits of 1kW to 10kW capacity.
Production Size
Target installations:
Year Target Units to Install per Total Units Installed in a Year
Month
1 15 Systems/month 180 system/year
2 20 Systems/month 240 system/year
3 25 Systems/month 300 system/year
System Capacity(Average):
Average solar system capacity installed per unit: 3kW
Total installed capacity year 1: 180 systems x 3kW = 540kW
Operating Days
Monthly: 22 working days/month
Weekly: 5-6 days/week it’s depends on installation schedule
Daily installation Goal: Approximately 1 system/day (with 2 teams rotating)
Schedule (Year 1)
Month Target Installations Inventory Stocked Notes
January 15 systems 25 units Marketing ramp up
February 18 systems 28 units Start rural outreach
March 20 systems 30 units Start off grid
barangay installs
April-June 45 systems 55 units Agri-seasonal
demand and street
light installations
July-September 55 systems 65 units Expansion to all
municipalities in
Cagayan valley
October-December 60 systems 70 units School partnerships
3. Material/Supply/Merchandise Requirements
Item Unit Cost Initial for 1-2 Months Annual Requirement
Description
Quantity Amount Quantity Amount
Solar P7,000.00 80 P560,00.00 800 P5,600,000.00
Panels(300-
500W)
Inverters P15,000.00 20 P300,000.00 250 P3,750,000.00
(1kW-
10kW)
Battery P10,000.00 15 P150,000.00 120 P1,200,000
Storage (for
off-grid)
Battery (12v P7,500.00 15 P112,500.00 120 P900,000.00
or 48v)
Mounting P2,000.00 30 P60,000.00 300 P600,000.00
Structures
Charge P2,500.00 20 P50,000.00 240 P600,000.00
Controllers
Cables & P2,000.00 40 P80,000.00 400 P800,000.00
Wiring Sets
Tools & P15,000.00 5 P75,000.00 10 P150,000.00
Installation
Kits
Safety P6,000.00 5 P30,000.00 10 P60,000.00
Equipment
(PPE)
Packing P300.00 50 P15,000.00 600 P180,000.00
Materials
Office & P5,000.00 2 P10,000.00 12(monthly) P60,000.00
Admin
Supplies
TOTAL P1,442,500.00 P13,900,000.00