Startup Mantra: Tapping renewable energy in a big way
Energy Bae’s innovative online platform helps customers connect with vendors; its solar calculator tool shows size, cost of project
Pune: In 2015, Pranay Khobragade and Akshay Jain were working on a college project on renewable energy and both got captivated by wind turbines that resulted in Energy Bae years later. Pranay said, “Our journey in the energy sector started in 2015, marked by immersive college projects that delved into various realms of renewable energy, including piezoelectricity, wind, and hydrogen technologies. The early projects laid the foundation for our interest in the sector.”
The passion got deeper and soon Pranay developed Wayumitra, and he claims it is India’s first indigenous hybrid vertical axis wind turbine. The project was not only groundbreaking (as most wind turbines were horizontal) in itself, but also served as a catalyst for deeper insights into the renewable energy ecosystem.
Finding the gap
Pranay said, “During this phase, we identified a critical gap in customer knowledge and expertise, particularly whilst selecting a suitable renewable energy solution.” Given that the duo had developed deep knowledge into this, they decided to do something about it. And something they did – an innovative online platform that helps customers connect with vendors. “The platform facilitates the connection between renewable energy customers and vendors, effectively addressing the gap that exists currently where customers have no idea of what they should use and vendors face challenges with financing, e-commerce and so on. A pivotal element of the platform is the solar calculator, a tool designed for customers where they need to put in how many units they use in a month and it will calculate the size of the solar panel, space required and approximate cost.”
The duo is working on building their online model that should take about six months and an app that is expected to be ready in about nine months’ time. Meanwhile, they have tested the waters offering the service offline.
“Our aggregator business model has been operational offline for over 18 months, during which we successfully brought together more than 250 vendors, leading to the realisation of 55 KW of hybrid projects. In the Indian renewable energy sphere, we have emerged as a prominent aggregator driving active operations within the solar sector, particularly in Maharashtra,” he said.
In the eight years that they have been in the renewable energy sector, along with the digital platform, they are “a knowledgeable and dynamic participant in India’s energy landscape”.
Will the solution work?
“While we started with wind turbine, we realised that there weren’t too many areas in our country that were suitable to capture wind energy and the government was not promoting it as much as it was solar. So, we started focussing on solar energy. Solar energy is the need of the hour, both for environmental sustainability and financial savings. And the government is actively promoting solar to reduce the country’s global emissions.
“The platform business model has become a game-changer in the digital age. The ability to connect consumers with producers and create a marketplace where all parties can benefit has transformed the way businesses operate. By leveraging technology and creating platforms that facilitate transactions, companies can generate new revenue streams, improve customer engagement, and create a competitive advantage in their respective industries,” he said.
The model
The idea of a solar platform business model is based on proven principles from other industries and tailored specifically to the unique challenges and opportunities within the solar industry.
Proven success in other industries: Platform business models have transformed various sectors, including ride-sharing (Uber, Lyft), e-commerce (Amazon, Alibaba), and accommodation (Airbnb). The platforms succeeded by connecting fragmented markets, streamlining processes, and creating value through network effects. The solar industry, which is similarly fragmented and complex, can benefit from these same dynamics.
Addressing key pain points: Complex supply chains, high customer acquisition costs, and financing barriers can be sorted with a platform that connects stakeholders, simplifies transactions, and provides access to finance and directly addresses these pain points, making it easier for consumers and businesses to adopt solar.
Increasing market transparency and trust: One of the barriers to solar adoption is the lack of transparent information on costs, quality, and reliability. A platform can offer reviews, ratings, and comparisons, helping consumers make informed decisions.
Network effects: As more users (customers, installers, manufacturers, financiers) join the platform, it becomes more valuable to everyone involved. The network effect is a core strength of platform models and can lead to rapid growth and scalability. For example, as more solar installers join, customers have more options, which attracts even more customers and suppliers to the platform.
Data-driven optimisation: A platform that gathers and analyses data from multiple solar projects can provide insights to optimise installations, improve performance, and reduce costs. The data advantage can drive continuous improvement and innovation, leading to better outcomes for users.
Alignment with industry trends: The solar industry is moving towards greater decentralisation, customisation, and consumer empowerment. A platform supports these trends by offering flexible solutions, and customer-centric services, aligning with where the industry is headed.
Scalability and flexibility: Platforms are inherently scalable. As the solar market grows, the platform can easily expand to accommodate new users, regions, and services without a proportional increase in costs.
Early-mover advantage: By becoming the go-to hub for solar energy transactions and information, it could capture significant market share and establish strong brand recognition.
“Our value proposition is simple: we save time for both customers and vendors by serving as a bridge between them. We aim to reduce the current average time of 18 weeks to 6 weeks,”
Investment
“In 2017, we started by investing ₹25,000 each from our pocket and received ₹60,000 investment from our college head of department (HoD). We got a Ministry of Electronics & Information Technology (MeitY) Technology Incubation and Development of Entrepreneurs (TIDE) 2.0 grant of ₹6,00,000 from Society for Innovation and Entrepreneurship (SINE), IIT Bombay. Along this journey, till today, we as founders have invested a cumulative total of ₹6,00,000 in the company. We also got support from many of our friends who invested small amounts in the company. We also got NIDHI EIR (entrepreneur-in-residence) from Venture Centre supporting us for a year with ₹3,50,000. After the pivot in the business model, we got Startup India Seed Fund Scheme (SISFS) ₹10,00,000 from Atal Community Innovation Centre - Vivekananda Global University Foundation (ACIC-VGU Foundation) as compulsory convertible debenture (CCD).
“After switching to the platform model in the last 1.5 years, we generated a gross merchandise value (GMV) of ₹1,50,00,000 and a revenue of around ₹15,00,000 closing orders for individual homes, residential societies and even government entities like HPCL Green R&D Centre, Bengaluru and Ordnance Factory Ambarnath (OFA).
“We are looking to raise ₹1.5 crore. The fund will be utilised mainly for the development of our platform and streamlining our operations and marketing, besides increase the strength of our team,” he said.
Go-to-market story
“From 2017 to 2021, we were primarily in the small wind turbine industry. When we transitioned to solar, we still received inquiries for wind turbines. After conducting wind surveys, we found that 80% of the sites had poor wind speeds, leading many of these clients to switch to solar. This created an excellent conversion funnel.
“To generate leads, we use platforms like IndiaMART and Justdial. Additionally, we conduct seminars on solar and wind energy, which help educate potential customers and generate further interest.
“We got our first wind turbine customer back in 2018, while we were in the R&D stage and conducting experiments at our incubation centre, Pimpri Chinchwad Startup Incubation Centre (PCSIC). Two gentlemen happened to pass by and as they were attending a seminar in the same building, they got curious about our work and asked us about it. We explained our project to them, and it turned out they were senior Navy officers. Impressed by our efforts, they invited us to INS Lonavla, which led to our first wind turbine order.
“For solar energy, a startup friend of mine mentioned that a founder of the Echai group was looking for a wind turbine installer. I reached out to her, conducted a survey, and although wind wasn’t viable for the location, we secured our first 3 kW solar order.
“The market is vast, it consists of different categories like rooftop/decentralised, ground mounted, industrial and utility-scale. Currently, we are focused on the decentralised renewable energy market with individual homes, residential societies, and commercial establishments like malls, hospitals, and MSMEs as our target market for now.
“We have different channels to approach these markets majorly focusing on channel partners helping us get more reach. We are currently covering Maharashtra in depth and want to eventually move to other states,” he said
Future plans
“We plan to introduce a product of EnergyBae in the renewable industry most probably in hydrogen,” Pranay said. Meanwhile they are building their platform which they hope will shine bright under the sun.