Folsom Labs Webinar Slides-Final-v4

How Software is Transforming Solar Development
Presented By:
03/22/16
Speakers:
Paul Gibbs, Co-­founder & CEO, Folsom Labs
Paul Grana, Co-­founder & Sales and Marketing, Folsom Labs
Jake Saper, Investor, Emergence Capital
Moderator:
MJ Shiao, Director, Solar Research, G TM Research
Today’s Speakers
Paul Gibbs
Co-­‐founder, CEO
Folsom Labs
Jake Saper
Investor
Emergence Capital
Moderator:
Paul Grana
Co-­‐founder, Sales and Marketing
Folsom Labs
MJ Shiao
Director, Solar Research
GTM Research
2
Audience Console Overview
3
Join us for the First Solar Software Summit: S3
S3: The Solar Software Summit
Scottsdale, Arizona
May 10, 2016 EVENT PARTNER
Followed b y GTM’s Ninth Annual Solar Summit, May 11 – 12
Find o ut more at www.greentechmedia.com/events
Sponsors
Use code FOLSOM25 for a 25% d iscount b oth events
4
The Enormous U.S. Solar Opportunity Ahead
U.S. National PV Installations by Market Segment ( MWdc)
25,000
Installed Capacity (MWdc)
20,000
U.S. solar hits 16 GW
21% CAGR in 4 years following 2016
15,000
10,000
5,000
0
2010
2011
2012
2013
Residential PV
2014
2015 2016E 2017E 2018E 2019E 2020E 2021E
Non-­‐Residential PV
Utility PV Source: G TM Research / SEIA U.S. Solar Market Insight 2015 Y ear-­‐in-­‐Review
5
Soft Costs Are Growing U.S. Residential System Costs, Q4 2014 – Q4 2015
$4.00
TurnkeyCInstalledCCostC($/Wdc)
$3.50
• Residential soft costs have risen 7% between Q4
2014 and Q5 2015
$3.00
$2.50
54%
61%
62%
63%
65%
$2.00
• Soft costs currently make up 65% of residential
system costs
$1.50
$1.00
• Commercial soft costs are falling, though represent
50% of a systems overall cost as of Q4 2015
$0.50
$0.00
Inverter
DirectCLabor
TurnkeyC Pricing
Source: GTM Research
Q4C2014
Q1C2015
Q2C2015
ElectricalC BOS
EngineeringCandCPII
Q3C2015
Q4C2015
StructuralC BOS
SupplyCChain,COverhead,CMargin
What (really) can be done to target soft costs?
U.S. Residential PV Soft Costs ($/Wdc), 2015
$2.50
VALUE1OF1SYSTEM
O&M1COSTS
Installed1Costs1($/Wdc)
$2.00
$1.50
$1.00
$0.50
$0.00
Source: GTM Research
PROCESS1EFFICIENCY
Overhead1
and1Margin
Taxes,1
Logistics
Customer1
Acquisition
DEPI*
LEAD1GENERATION
CONVERSION1RATE
DESIGN1+1ENGINEERING
PERMITTING
INTERCONNECTION
Labor
ACTIVE1LABOR1ONWSITE
2015E
*DEPI1=1Design,1engineering,1permits,1interconnection
OFFW AND1ONWSITE1PREP
In a word: Automation
(In two words: Solar Software)
GTM Research Webinar: Five Trends Re-­‐S haping C&I Energy Management
Co-Evolution of the Solar Industry
and Software Products
March 2016
9
coevolution (co·evo·lu·tion) n. evolution
involving a series of reciprocal changes in two
interdependent populations
10
Cells
Racking
Software
Long History Of Industry-Specific Products to Reduce Cost and
Improve Competitiveness
11
Generic
SolarSpecific
For More on the Solar Software Ecosystem,
Join us at the Solar Software Summit
Why S3:
• Stay up-to-date on software products and trends
• Learn how other developers and engineers are leveraging software
Tuesday, May 10th – Scottsdale, AZ
Sponsors
12
Speakers
The Rise of the Solar Software Unicorns…
jsaper@emcap.com
@jakesaper
13
Emergence = Enterprise Cloud Leadership
$5B+ Revenue
~$40B Market Cap
IPO then Acquired by
SAP for $3.4B
Acquired by MSFT
for $1.2B
~$3.5 B Mkt Cap
14
Veeva- the Power of Industry Cloud
• 66% increase in sales productivity
• 30% savings over legacy CRM
15
Layering the Cake
16
Distributed Generation Software Landscape
17
Co-Evolution Areas
Work Flow
18
Design
Optimization
Software
Ecosystem
Re-Shaping the Sales Process
this
1. Front-load to sales
(eliminate engineering
team input)
this
this
19
2. Sales-valueengineering
3. Customer re-design
Portfolio Sales
“When the customer realized we had detailed designs
for every building they owned, their jaws dropped.”
20
“Easy-to-Use” Means Different Things for Different Companies
“We are able to get new-hires trained up, and working on real customer
projects, within 48 hours.”
Small Companies
21
Medium Companies
Big Companies
Value Engineering Helps to Close the Sale
22
HelioScope
Demo
23
Standard Solar Project Work Flow
Sales
Customer
Sales
Engineering
ERP
Customer
Sales Call
Lead
Proposa
l
CRM
Post-Build
Signoff
LOI
Contract
Preliminary
Design
Engineering
Operations
24
Value
Engineering
Project
Financials
Permits
Inventory
Operations &
Maintenance
Construction / ERP
Portfolio
Analysis
Optimized Solar Project Work Flow
Sales
Customer
Sales
Engineering
ERP
Customer
Sales Call
Lead
Value
Engineering
Proposa
l
Iteration
Post-Build
Signoff
LOI
Contract
Project
Financials
Engineering
Permits
Operations
Inventory
25
Operations &
Maintenance
Construction / ERP
Portfolio
Analysis
Does Streamlined Software Mean Fewer Jobs?
Since 1980:
400,000 fewer
bookkeeping/cler
ical jobs
26
600,000 more
accounting
jobs
Source: P lanet Money, E pisode 6 06: “Spreadsheets”, P ublished February 2 5, 2 015
We are Seeing the Same Shift with HelioScope
“With HelioScope, customers are becoming accustomed to running multiple iterations of
possible array designs quickly and in the process bombarding our sales, estimating and
design departments with several versions of the same project to consider for racking quotes.”
--Racking Manufacturer
“My customers who use HelioScope are sending me more work, because they are running
four iterations for each array, instead of just one.”
--Engineering Company
“I am able to run over 150 iterations on my own to optimize the PPA bid, before having to
send the project to my finance & engineering teams. Before HelioScope, I had to beg the
engineering team to run 10 different scenarios, and even then they often didn’t have the time.”
--Business Development Manager for
Fortune-500 Solar Developer
27
The Designs Of 2016 Are Very Different From The Designs Of 2014
115kW Array
70kW Array
Greater Shade
Tolerance
Lower tilt, tighter
row spacing
Larger
DC/AC ratio
28
“Two years ago, if you designed under shade, then you were
crazy. Today, if you’re not optimizing and incorporating some
designed shade, you aren’t doing your job.”
“Two years ago, any DC/AC ratios above 1.2 were
considered suspicious. Today, if you’re below 1.25, then you
are leaving money on the table.”
29
Automatic Permit Tools Encourage the Harmonization of Inspector
and Utility Requirements
30
“The SunRun of _______” is Skipping Software Development
Europe
MENA
Latin America
Africa
31
South Asia
Australia/NZ
API Landscape Greatly Streamlines Work Flow
CRM
Imagery
Weather
Distribution
Leads
Monitoring
LiDAR / Shade
32
Structural
Financing
Unirac API Tie-in Further Streamlines Project Engineering
33
For More on the Solar Software Ecosystem,
Join us at the Solar Software Summit
Why S3:
• Stay up-to-date on software products and trends
• Learn how other developers and engineers are leveraging software
Tuesday, May 10th – Scottsdale, AZ
Sponsors
34
Speakers