Hyderabad based start-up Freyr Energy is full-service solar provider with solutions spanning across rooftop, solar pumps, petrol pumps and micro grids. Freyr Energy has already completed more than 800+ rooftop installations across 14 states engaging 2000+ channel partners. In this exchange with T&D India, we have co-founders Saurabh Marda and Radhika Choudhary telling us more on their company’s activities, particularly the Freyr SunPro app that can change the way consumers look at solar rooftops.
Let us start by understanding in brief the various services that Freyr Energy offers in the solar industry.
Freyr Energy is a Hyderabad based full solar service solutions provider with operations in India and Ghana. The company’s products range from rooftop systems, petrol pumps, solar water pumps to microgrids. Our customers include home owners, farmers, hospitals, educational institutes etc.
In the last three years, Freyr has installed over 850+ solar systems across 14 states, impacting over 62,000+ lives in rural India and Ghana. We are a MNRE channel partner and an ISO9001 and ISO14001 certified company.
Tell us more on the SunPro mobile app that, as we understand, aims to simplify the rooftop solar business.
The Freyr SunPro mobile application is designed to help an entrepreneur run his solar business with ease. We used complex algorithms in the background while developing the app, which has made the process streamlined and simple. It is equivalent to a five-person team consisting of design engineer, pricing specialist, customer management, supply chain and project management, having 24×7 support, to close orders. The tool is so easy to use; anyone from any background can use it to start immediately in the sector. It can provide an instantaneous, error free system for design, pricing and proposal generation, which reduces sales cycle time to just one-two meetings with the customer.
The current dealer/distributor/wholesaler model in India is inefficient, expensive and does not meet the customer requirement.
We understand that Freyr Energy has completed the installation of over 850 solar rooftop installations, in association with channel partners. Could you take us through this process, discussing Freyr Energy’s role and that of the channel partners?
Typically, in this business you would have a wholesaler, dealer and distributor—at least 3-4 layers if not more—before the product reaches the customer. We believe such a layered approach would undermine the quality and time schedule of the project. The current dealer/distributor/wholesaler model in India is inefficient, expensive and does not meet the customer requirement. We decided to eliminate all this through our technology Freyr SunPro. The customer has only one point of contact through the entire process and, purchase to installation takes less than four weeks.
Channel partners focus on selling, and closing the deals with the Freyr app, and we have very attractive margins for them. Once the deal is closed, we take it on from there to provide installation, assembly and after-sales support.
Are these installations predominantly on commercial establishments?
In fact, our work has largely been in the residential and institutional segments. We cater to SMEs, hospitals, schools, colleges and residences too. We have completed more than 5.5 mw projects out of the cumulative installed capacity of 1.5 GW in rooftop segment and have several ongoing projects across the country.
With Freyr SunPro app, the user does not need a solar or electrical background anymore to start their business.
Freyr Energy says that no initial investment is required to start a rooftop solar business. Please elaborate.
With Freyr SunPro app, the user does not need a solar or electrical background anymore to start their business. The training time to use the SunPro is less than 1 hour. The app is easily available for download on android and iOS. We see a lot of individuals growing as new entrepreneurs with almost 30 per cent of the users benefiting from the app. Thus in the initial stage you could spearhead through your business venture with our Freyr SunPro app.
Could you please explain the concept of a microgrid, and how rooftop solar system can be a part of it?
With the help of rooftop DC microgrid systems, we can provide electricity to even those villages and houses where the government has still not been able to reach, benefitting those living in very remote areas. Moreover, surplus power generated during the day, goes back to the battery bank which stores power for usage after sunset.
What is your view of the net metering policies across various states? How can net-metering rooftop solar projects be promoted in urban areas?
While most of the policy changes that have been announced cover important aspects of the solar business, an issue that hasn’t been focused on much is the net meter installation process. While the policy exists, implementation is a challenge as the process to acquire a net meter lacks transparency and not very streamlined in several states. If this process can be streamlined, it would encourage more people to go the solar way. The awareness of net metering among people can be increased by letting them know about how it creates financial benefit for the owner and decreases additional investment by avoiding the use of batteries.
Currently in use in various states like Andhra Pradesh, Assam, Chhattisgarh, Gujarat and Haryana among others, it works on the motto of produce more today and use that tomorrow.
Freyr Energy is closely involved with the government to electrify villages, specifically in naxal-hit areas.
Is Freyr Energy also involved in the national village electrification drive for areas that are off grid and need standalone solar plants or solar-powered devices?
Freyr Energy is closely involved with the government to electrify villages, specifically in naxal-hit areas. We have completed more than 100 projects in the tribal community of Paderu in Andhra Pradesh, and have also undertaken several projects in Uttar Pradesh and and parts of northeast India.
There is a feeling that the government’s solar rooftop drive has been short of expectations. Even the target of 40 GW (by 2022) has been scaled down to 20 GW. What the main challenges when it comes to rooftop solar in India?
Union power minister R.K Singh’s optimistic view on achieving a 200-GW renewable energy target comes as a hope builder. With more than 20 GW tenders in solar coming up in next few months, the future sure looks bright.
While the scope is tremendous, the biggest challenge in realizing the government‘s mission is the lack of participation at the grassroots level. Moreover, a well thought-out plan and ambitions must be coupled with a rigorous implementation plan. At an institutional level, a little nudge from our government in enforcing solar as mandatory needs to be done. Also to get the solar system installed, customers have to endure the cumbersome process involving four different companies (supplier, installer and so on), which leads to loss of accountability. We are addressing this issue through Freyr SunPro app. It represents a major shift in the way business is done in the rooftop market. Our path to growth is through spurring entrepreneurship at a grassroots level.
Solar energy is clearly a focus area the practical and policy difficulties notwithstanding. How do you gauge the potential for Freyr Energy in the coming years, and what would be your thrust areas?
Specifically with regards to rooftop, we have a market share of about 4 per cent. We are looking to capture 10 per cent market share in India, and expand to 25 countries in the next three years. We also aim to quadruple our revenue by the next five years. Thrust areas for us would be technology development and deployment. Energy storage is the next big thing in the industry, and we are focusing our research in this area.
Rooftop solar in the residential, commercial and industrial markets will pick up, and we can expect the residential to become self sustained without having to run on subsidies. So we will continue to focus on these areas well.
