CYGNI

Executive Summary

The Problem

Solar PV gives DC Power

But load is AC

Needs a DC-AC convertor

Now if we add a battery

Battery stores only DC

Require a AC-DC convertor for charging

Require a DC-AC convertor during discharging

For low power, each convertor* can have 10 to 15% loss

Solar with battery may have 25 to 45% loss

DC-AC

AC-DC DC-AC

battery

Load AC

grid

Solar DC

DC Advantage Basic Home Loads are moving to DC

Electronics devices work on low-voltage DC

TV (LED/LCD), laptops. Cell-phones, speaker-phones, tablets,

speakers

AC to DC conversion has losses from 20% to 50% in each device

Refrigerators, air-conditioners, washing machine moving to BLDC motors

AC fan 72W BLDC fan 30W

at speed 1 60W 9W

CFL tube 36W LED tube 15W

low intensity na 4W

Move to Solar-DC at Premises

48V DC line as an additional power line at home

Highly power-efficient usage of Solar

Low-power from grid alone converted from AC-DC

Designed to have minimal loss

Battery can be added with higher efficiency (no convertors), if required

AC-DC

battery

Load grid

Solar

48VDC

48VDC

48VDC

Why is Decentralized Solar important?

Grid: ₹4 to 9 per kWh:

Diesel generator: ₹24 per unit at 85% load: instantaneous

at 40% generator load, costs goes up to ₹34 per unit

Battery back-up: storage costs ₹12-15 + ₹5 per kWh

Solar PV: under ₹5 per kWh when dc is used: day time only

Conversion to AC may add ₹1.00 per unit; No land-cost added

Solar PV power price at DC level

PV cost per kW 60000 sun-hours per day 5

interest rate % 12% sun-days / year 300

depreciation (yrs) 20 total units gen per year 1700

yearly payment ₹ 8033 Losses 10%

price per unit

₹5.25

Chronology of Progress

* Expected

Milestone Date

IITM 90KW Solar Project - Start 10-May-13

UDC Project Approval from MHRD 26-Sept-13

IITM 90KW Solar Project Commissioning 28-Sept-13

UDC-Approval-TN 20-Dec-13

UDC-Approval-AP 02-Jan-14

IITM 1MW Project 04-Feb-14

GOA Implementation – Tenet, CSTRI Lab 30-Apr-14

UDC-Approval-KL 07-May-14

UDC-Approval-OD 22-Aug-14

UDC-Trial: GFRG Implementation 16-Sept-14

Cygni Company Incorporation 18-Oct-14

UDC-TN: Commissioning 02-Dec-14

UDC-AP: Commissioning* 28-Dec-14

Management Team

Venkat Rajaraman:

MS from Stanford University

20-years of system design and engineering

management

Earlier with Su-Kam (CEO); Portal Player (VP

Engg) and Sun MicroSystems

CEO Solaris since 2010

CEO – HR, Finance,

Project Management

V Ramakrishna:

MBA in HR

20-years of experience in HR & Project Mgmt.

Earlier with Su-Kam as Senior Project

Manager and NVIDIA as Sr. Executive.

General Manager –

HR & Admin

Technical Architect

Deepesh Gujarathi:

15-years of experience in embedded system

and product development

Earlier Co-Founder of Svena Energy - Clean-

tech start-up in energy efficient products & design

services.

Design BLDC motor control, battery monitoring

and LED lighting products

Cygni Business

o Solarsis in-business since 2010.

o On-grid, Distributed Generation, Roof-top

Solar Projects.

o Completed 17MW of Solar-AC Projects.

o 3MW of Solar-AC Projects On-going

New Solar-DC Business

Solarsis existing

Solar-AC Business*

Cygni

VISION

100MW Solar-DC installations in 5 years!

UDC & Solar DC Solutions

Solutions

Solar-DC

GOA OGH

UDC w/ Brown-Out Focus

Area

Solar-DC Technology Productization

o RBM (Remote, Buzzer, Metering) Unit

o OGH (Off-Grid Home) Unit

o BPU (Buzzer Protection Unit)

o DPAU-L (DC Power Augmentation Unit – Low Cost)

o LVCO (Low-Voltage Cut-off) 1ϕ and 3ϕ

o GRPS BoC (Brown-out Control)

o GOA – Management Unit

o DC-DC Converters (Mobile, Laptop Chargers and TV adapters)*

o UDPM*

* In Phase-2

Residential Market- India o 186 TWh/yr or 21% of total energy consumption

o Ceiling fans and lights – 115TWh or 62%

o 4x growth from 16,000 million sft in 2005 to 64,000 million sft

by 2030

o 1million new homes per year increasing to 3million by 2030

o Typical home configuration (106sqm floor area)

o 4.8KW connected load and 3577units/yr energy consumption

o >$10B market opportunity

Source: RESIDENTIAL BUILDINGS IN INDIA: ENERGY USE PROJECTIONS AND

SAVINGS POTENTIALS – Technical Report • September 2014 2

Low-Voltage DC Eco-system

Barrier to Entry

Trust

Customer Ownership

Scale

First Mover

Innovation

Cost

Green: Current

Orange: Roadmap

GOA Solution

Apartment Complex with 24 flats

Backup power provided

Lifts, Water

pumps,

AirCon,

Heaters,

sockets for

mixer-

grinder, hair

dryer etc.

Lights, fans,

electronics,

sockets for

electronic

off-the-shelf

AC devices

NO INTERVENTION

BA

CK

UP

OP

TIO

NS

Diesel Generator

Inverter + Battery

Green Offices /

Apartments

Our Solution- Solar DC

48V DC

5 kWp

GOA

230VAC

Grid 2.7 kW

230VAC

Grid (optional) Battery

(25 kWh)

48V DC

Load (up to 7.2 kW)

• Low Cost, high efficiency multi-home solar solution

• GOA Box: Proprietary technology developed in collaboration with IITM

Solar-DC Solution

High efficiency at >96%

Seamlessly integrates solar, grid and battery

Smart Load Control

Prioritized source selection

Remote monitoring and management

DC digital metering - 0.5 class accuracy

Intelligent Solar MPPT control

Meter reading integration with hand-held devices

NoC with centralized management

Savings Calculator

Description Value UoM

Conventional Loads (4 fans, 8 lights) 600 Watts

Utilization per day 8 hours

Cost of power (including 2hr of backup) 7.5 INR

Units of Power Consumed per home per day 4.8 KWh

Power Bill per day per home 36 INR

Current Power Bill per year 13,140 INR

Future DC Load (50% savings) 300 Watts

Future Power Bill (50% from grid @Rs6/unit) 2,628 INR

Rs13,140 Rs5,400 Rs2,628 Rs5,112

Value Proposition – Streaming Model

Cygni Savings UoM Value

Power Generation Mix of

GOA system

Solar:Grid:Battery 45:50:5

Capex per home (24home

system)

Rs20,000

Return on Capital to Cygni Per Annum Rs5,400

ROI Years 3.7

Current annual

electricity bill

Cygni annual

charges Future annual

electricity bill

Annual

Customer Savings

Value Proposition - Customer

Pay Monthly

Pay Less

No obligation / only pay per use

Don’t have to do anything

Feel Good

Cost Roadmap

With 100K Volume

With MNRE

Solar Subsidy

Incremental Cost

Today

With BEE

Intervention

With 1M Volume

Rs 20,000

(TO)

(Rs 2,000)

TO + 1 Year

(Rs 500)

TO + 2 Yrs

(Rs 1,000)

TO + 3 Yrs

(Rs 500)

TO + 4 Yrs

Incremental Cost (projected): Rs 16,000 per Home

Revenue Projection

Year 1 Year 2 Year 3 Year 4 Year 5

2.4KW

GOA

Units (in

‘000)

0.4 1.7 5.8 15.5 31.8

CapEx 0.7 Cr 7.2 Cr 41 Cr 122 Cr 284 Cr

Go-to-market strategy

o Focus Area – GOA o Targeted at Residential and Commercial consumers.

o Sell as a box (CapEx) or as a solution (Stream)

o Shift gradually more towards streaming model

o Upside – OGH o Position an an alternative to Home Inverter Market

o Productize and sell OGH box.

o Channel Network / Franchisee for deployments & Service

o 100K OGH initiative

o Upside – UDC o 100,000 home UDC project, Proposal stage at MoP

o 8-10 Sub-Station (SS) in a one town.

o Cygni will do SS side work.

o Channel / Network for home deployments

Scaling up challenges

o Math has to work

o Customer has to see / experience value

o Business Timing

o Team skill set

o Ability to execute

o Hard work & Sincerity

Current Installations - Solar DC

~100KW (includes ongoing)

>1000 homes

Several installations including CSTRI

Lab, Tenet Lab, GFRG building, TEDA

office etc.

Presence in AP, TN, KN, OD

GOA Installation

UDC Pilot Installations

S.No Description #homes/UDC @Sub-Station

# Homes planned KWp

1 UDC-TN 1000 219* 10.95

2 UDC-AP 1000 236** 11.80

3 UDC-KL 1000 320** 16.00

3 UDC-OD 1000 500** 25.00

Total 4000 1275 63.75 * completed, ** In-Progress

Funding Requirement

S.No Category Description Requirement (in Lakhs)

1 Capex 1.1MW implementation at Rs6.6Cr per MW (Streaming model @50% of homes) 330

2 R&D/Prod R&D Lab, IQC Lab set-up, Supply Chain, Test Equipments. 220

3 G&A Employee Exp, R&D/SW/HW exp, One-time Setup Expenses 450

S.No Category Description

Requirement (in Lakhs)

1 UDC 100K Project: Rs900 per home at SS level 900

2 UDC 100K Project: Rs100 per home for Meter Installation 100

Summary

Equity: 10cr

Working Capital: 10cr

Equity funds utilization

Working Capital utilization

Thank you

Partner with CYGNI

Contact: www.cygni.com; email: info@cygni.com

MAKE SOLAR YOUR POWER