Lesedi Solar Care Business Plan — Services & Revenue Model

Preventive and corrective maintenance, cleaning, monitoring, reporting, spares management

Services & Revenue Model

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6.1 Four service lines

Service line

Description

Contract form

Y5 share

Full-service O&M

Preventive and corrective maintenance, cleaning, monitoring, reporting, spares management

3–5 year contract, R/MW/yr, CPI-escalated

53%

Specialist cleaning

Scheduled cleaning for plants retaining O&M in-house or with third parties

1–3 year contract, per-cycle or R/MW/yr

33%

Inspection & diagnostics

Drone thermography, IV curve tracing, commissioning and acquisition audits

Project fee or annual retainer

8%

LumenIQ subscriptions

Performance analytics, soiling forecasting and reporting portal

Monthly SaaS per MW monitored

6%

Figure 8. Revenue by service line, Year 5 (as stated).

6.2 Why the mix matters

Cleaning is the entry product: easy to price, easy to prove and low-risk for a new client to trial. Full-service O&M is the retention product, with higher revenue per megawatt and materially higher switching costs. Diagnostics generate high-margin project work and, crucially, function as a sales channel, an acquisition audit routinely uncovers the underperformance that justifies an O&M contract. LumenIQ subscriptions carry near-zero marginal cost and lock clients into Lesedi’s reporting environment.

6.3 Reconciling the mix to the price list

Figure 9. Year-5 service mix reconciled against stated prices and capacity.
Key findingThe stated Year-5 mix does not reconcile to the stated prices and capacity

Testing the mix against the price list produces an inconsistency of roughly 405 MW. Specialist cleaning at 33% of R139 million is R45.9 million; divided by the stated cleaning price of R38,000 per megawatt per year, that alone implies 1,208 MW of cleaning contracts, 97% of the entire stated 1,250 MW under management. Full-service O&M at 53% is R73.7 million; at R165,000 per megawatt that implies a further 447 MW. Together they imply approximately 1,655 MW against 1,250 MW stated. Holding capacity at 1,250 MW instead, and stripping out diagnostics and subscriptions, the blended price of the remaining revenue is roughly R95,600 per megawatt, which at the stated price points requires a mix nearer 67% full-service and 19% cleaning, not 53% and 33%. Three resolutions are possible: capacity under management is understated; cleaning is priced above R38,000 per megawatt; or megawatts are counted once while carrying more than one service line. The Plan should state which, because contribution margins differ by line, 43% for full-service against 38% for cleaning, so the mix drives the margin trajectory the whole plan depends on.

NoteOne apparent anomaly that is in fact explained

A related test resolves benignly. LumenIQ at 6% of Year-5 revenue is R8.3 million; at the stated R310 per megawatt per month that implies approximately 2,231 MW subscribed, well above the 1,250 MW under management. That is not an error, the Plan states explicitly that LumenIQ is sold separately to owners who retain O&M elsewhere, as a low-cost route into accounts Lesedi does not yet service. The subscription base is therefore correctly larger than the managed base, and the figure is internally consistent. It is worth noting because it demonstrates the platform is modelled as a genuine standalone product rather than an add-on.