costing exercise

[Scrag]

Hi Guys. New to the forum so be gentle. Been looking at threads for last week and am impressed with feedback, so before I start, thankyou for that. I am currently a disgruntled electrician based in the SW competing against everyone else and am fed up with it and therefore have decided to go down the pv route. Did c&g coarse 2 years ago but have just applied for MCS. Had a couple of installs to do for assessment but they have let me down. Therefore I have to fork out and stick one on mine. Costs are increasing.. My question is although broad and hyperthetical. How much does a 2,3 or 4KW cost to install on an average 3 bed semi. ie, scaffolding, roofing (if using a roofer) structual engineers report, etc etc.. Got to work to some sort of figures and am looking forward to feedback.
From my local wholesaler I am looking at approx £2100 per KW in kit form using Shucho & SMA stuff.
I reckon for two guys we are looking at 3 days for first complete install and gradually reducing this.
Not sure about the paperwork (MCS), surveying, calcs etc etc. Hence the Post and anything else I have unforseen or not included. Got to justify spending to the accountant..... Or should I say Wife and kidz. Using the figures above I cannot see much profit unless we can get the materials significantly cheaper.Thanks in advance

 

[Scott H]

for scaffolding - contact a couple of local scaffolding companies and ask them for quotes

Structural engineers report - you may be better talking to an independant building inspector so that they can check the structure and also complete the building control for you - as you will need this at least until you fall under the banner of the MCS. - but then again, depends if you are happy with your knowledge on all of the other parts of building control.

In terms of price for kit, that will depend on how precious you are to buying a 'brand' and coupled with your confidence that the company will still be around (and in the UK) for the next 25 years ...

hope this helps

 

[yellowvanman]

I've got a very small 3 panel kit that I used for my Elecsa accreditation, panels are mounted on Console units which can be installed on a flat roof or patio with no fixings in roof etc. I hire this out for a small fee. PM for more details if your interested. Its also been successful for a NAPIT assessment as well!

 

[SRE]

Hi Guys. New to the forum so be gentle. Been looking at threads for last week and am impressed with feedback, so before I start, thankyou for that. I am currently a disgruntled electrician based in the SW competing against everyone else and am fed up with it and therefore have decided to go down the pv route. Did c&g coarse 2 years ago but have just applied for MCS. Had a couple of installs to do for assessment but they have let me down. Therefore I have to fork out and stick one on mine. Costs are increasing.. My question is although broad and hyperthetical. How much does a 2,3 or 4KW cost to install on an average 3 bed semi. ie, scaffolding, roofing (if using a roofer) structual engineers report, etc etc.. Got to work to some sort of figures and am looking forward to feedback.
From my local wholesaler I am looking at approx £2100 per KW in kit form using Shucho & SMA stuff.
I reckon for two guys we are looking at 3 days for first complete install and gradually reducing this.
Not sure about the paperwork (MCS), surveying, calcs etc etc. Hence the Post and anything else I have unforseen or not included. Got to justify spending to the accountant..... Or should I say Wife and kidz. Using the figures above I cannot see much profit unless we can get the materials significantly cheaper.Thanks in advance

When doing your business plan don't forget to take into account:

cashflow for vat - out at 20% in at 5% - 15% difference for 3 months.
you may at some point need to buy materials in advance - we're having to buy 4 systems for September in advance so we can guarantee availability of panels.

We're 12 months down the line and still taking minimal wages to keep cashflow in tact. It's not the cash cow people think it is - make sure you've got decent contingency funds to keep your personal outgoings covered while you're building the business.

 

[Scrag]

Thanks for input guys. Didnt ever think for one minute it was a cash cow. Just trying to make an honest living and on a budget, which really concerns me. SRE, 12 months and still on minimal wages. Dont like the sound of that. Can you see light at end of tunnel

 

[Scrag]

Yellowvanman. Sounds very interesting that. Will try to pm you whatever that is.

 

[pirhead]

I was told on my last course that you want to cost it roughly at £1000 per kilowatt. :cheesy:

 

[SRE]

Thanks for input guys. Didnt ever think for one minute it was a cash cow. Just trying to make an honest living and on a budget, which really concerns me. SRE, 12 months and still on minimal wages. Dont like the sound of that. Can you see light at end of tunnel

Yes, if it doesn't kill us with exhaustion on the way

 

[Scrag]

With hindsight would you still do it? Market seems to be getting saturated and driving install price down. It would appear and correct me if I am wrong that the big boys that can buy in bulk are getting the majority of installs and using subcontractors to install and thereby dictating rates which appear to be falling. It is only an observation on my part and probably another thread.

 

[SRE]

If I'd known then what I know now I'd never have gone near it - it would have looked like too much of a risk and we wouldn't have had enough cash - I'm still not quite sure how we made it this far but we don't have overdrafts and although we have credit with wholesalers we don't really need it now.

We're booked out until the end of November, 90% of our jobs are from recommendations from previous customers and we win every job that we go for where nationals are pitching BUT it's taken a while to get there and we're not resting on our laurels, we have to be constantly aware of what is being offered in our area and constantly working to make sure we're offering our customers the best deal.

 

[Markc]

Not every job is won on price. We have had several comments on not being the cheapest yet won the job.

Work on your strengths as a company. What you can offer the client a national can't. Long term service and customer care in my opinion is key. Local being number two on the list. Think about what you can offer in the way of total piece of mind in the coming years to the client at minimal cost to yourself.
Don't think big, as they say keep it simple. Lots of small jobs may be better than one big one. Factor in the cash flow as others have said. We are fortunate that we are an established company of over 40yrs and VAT etc was in place long before PV even so we upped our overdraft to £20K (yet never used it so far) cash flow can get to the penny at busy times.

Don't offer what you can't supply. Stick to the products YOU know about not what you have been told. Research the product yourself. I have been caught out more than once passing on information from a rep or alike only to find out down the line its just sales blurb!

And if PV is your only work don't expect to go from one job to the next straight away. There will be slow times and busy times. Surveys and second surveys, paperwork.......oooohhhhh the paperwork.!!!!!!!!!!!!! yet more paperwork.....! All not bring in the money but still have to be done. For some time now between the two of us we have a week of full time surveys and no income from them. This labor for this time also has to be covered.