Lesedi Solar Care Business Plan — Annexure D: Contract Unit Economics

The contrast between the two contracts is instructive. The utility contract generates sixty-one times the revenue of the commercial contract for a…

Annexure D: Contract Unit Economics

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D.1 Representative 75 MW utility full-service contract (annual)

Line

Amount (R’000)

% of revenue

Contract revenue

7,125

100.0%

Field labour (crew, supervision allocation)

(2,280)

32.0%

Consumables, water and detergents

(460)

6.5%

Fleet, fuel and robot operating cost

(712)

10.0%

Depot allocation and site supervision

(598)

8.4%

Contribution

3,075

43.1%

D.2 Representative 2 MW C&I rooftop contract (annual)

Line

Amount (R’000)

% of revenue

Contract revenue

116

100.0%

Field labour

(42)

36.2%

Consumables and water

(9)

7.8%

Fleet, fuel and access equipment

(16)

13.8%

Depot allocation and supervision

(7)

6.2%

Contribution

42

36.0%

The contrast between the two contracts is instructive. The utility contract generates sixty-one times the revenue of the commercial contract for a contribution margin seven percentage points higher, because field labour is spread across a far larger array and access is unconstrained. A commercial rooftop contract at 2 MW requires the same mobilisation, the same safety regime and the same reporting overhead as a site many times its size. This is the arithmetic behind the route-density argument, and it is why the Plan is right to insist that contracts outside a depot cluster must clear a higher price threshold or be declined.