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Jay has negotiated with suppliers for solar panels and wind turbines to get those at a total cost of $159 million, a significant discount to
Jay has negotiated with suppliers for solar panels and wind turbines to get those at a total cost of $159 million, a significant discount to new prices.As part of Jay's planning back in January 2023, he contracted a market research firm, at a cost of $196,500, to provide TerraGreen Energy Solutions with an estimate of the number of firms and retailers willing to switch to his proposed renewable energy provider, EcoPower. Table 1: Forecast of yearly clients for EcoPower Year 1 2 to 3 4 to 8 9 to 15 16 to 20 Total number of business clients 20,075 21,900 22,630 23,725 22,995 Jay has set his pricing for EcoPower to be equivalent to a renewable energy contract offered by existing market leaders in green energy. Reviewing their pricing, Jay has determined that EcoPower's electricity prices are expected to remain constant in real terms at $0.33 per KWh. Market research shows that the average consumption of each client is of 29KWh per day.Currently, part of the office space is rented to unrelated parties for $2.9 million each year. TerraGreen Energy Solutions is already spending $73,000 per annum on storage facility security. If EcoPower goes ahead, these facilities will require a
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