October - 2016 - issue > Company of the Month

Freyr Energy: Disrupting the Solar Realm by Wielding Technology

si Team
Sunday, November 6, 2016
si Team
The Indian government has set a target of generating 40 GW by 2020 on the distributed solar segment, which translates into a massive market opportunity worth nearly Rs.300,000 crore. Cost of electricity from soalr energy is at par or below cost of grid power in several parts of India. This presents a unique opportunity for solar organizations to grow profitably without the need for additional government support. On the flipside, this nascence has left the industry with several gaps that are yet to be addressed. For instance, 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 when something goes south. Bridging such gaps by handholding customers from pre-sales to post installation has made Freyr Energy a disruptive force with over 60 channel partners across India in a short span of two years.
Straightforward, Hassle-Free & Affordable

"Our sales & installation process is very simple and transparent. Our end customers are involved in the whole system design and they are well aware of all the 25-40 components (all meeting international standards) the system is comprised of," remarks Saurabh Marda, Co-Founder, Freyr Energy. The company's proprietary technology helps the sales team to capture various aspects within 15 minutes, such as customer's energy requirement, shadow-free space available on roof, local state policies, precise local solar radiation (which alone impacts price & performance by 10-30 percent), availability of grid & existing backing system in their premises and customer's budget. This is very different from the existing model where this entire process takes several weeks to months. Making the purchase further affordable is the company's capability of getting financing for its customers through third parties. Furthermore, the absence of a whole network of wholesalers and distributors not only allows Freyr to be competitively priced for end customers, but also facilitates its channel partners to make higher margins.

A Boon for Channel Partners

Besides shrinking the sales cycle to a bare minimum of one-two meetings with customers, Freyr's technology also eliminates the need for channel partners to have a solar or electrical background. Unlike other organizations that demand channel partners to invest between Rs.5-25 lakhs for inventory purchase & storage before they could represent them, Freyr just requires the channel partners to pay Rs.10-15k as the software rental fee. Since they are not burdened with the hassles of procurement & installation, they can focus on what matters the most - selling the system.

"Over the past two years, we've systematically setup a network nationwide. For us, addressing a service request is as important as making a sale. It is this kind of approach that has resulted in 50 percent of our orders coming from referrals," proclaims Radhika Choudary, Co-Founder, Freyr Energy. Working closely with its manufacturers and getting its people trained in their facilities has permitted Freyr to efficiently provide after sales service instantaneously, rather than relying on manufacturers.

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