How does capital investment work

1. Distributed Energy - How does capital investment work? December 2020

2. Distributed Energy Overview Distributed Energy is a development and aggregation platform that connects renewable energy projects, primarily solar with funders. We accelerate the deployment of renewable energy (solar) across the developing world.

3. What is Capital Investment? Capital Investment refers to money or assets a company uses to achieve and further its business objective. Take for example- when an individual or a financial institution makes an investment in a business, a sum of money is handed over as a loan or in return for a promise of repayment or a share of the profits. In this sense, capital means cash. Capital investment can be made through purchasing key long-term assets that will facilitate the business to function smoothly. In this sense, capital means physical assets. This investment is done by using its own cash reserves, or by seeking a loan from a bank. A company can seek capital investment from any sources like venture capital firms, angel investors and traditional financial institutions. The capital is used to develop its targets and ultimately helps to increase the firms’ value. Looking at the various sectors for the last decade, renewable energy had shown a significant rise in its investment trends. The major portion of these investments is the capital for solar.

4. Role of Distributed Energy in Capital Investment At Distributed Energy, we focus on leveraging our expertise in the renewable energy sector by providing an aggregation platform that facilitates capital investments in distributed small-scale solar projects across developing countries such as India, Middle East and East Africa. Ultimately, our goal is to bridge the gap between the growing number of solar projects and availability of funds for them. Many small-scale solar energy projects, especially in the developing stage are unable take off due to lack of funding/ financial backing. Our focus on this niche market puts us in a unique position that allows investors of all classes to invest in an asset class that was traditionally available to larger institutions only. Expanding this investment option to a broader range of investors means we are providing a largely untapped service that is closely aligned with their values and also provides an attractive, annuity style return on their investments.

5. What is Capital Budgeting? After building the capital, the next part is making capital investment decisions i.e. capital budgeting. Capital budgeting is basically allotting the capital investment funds of the firm in the most effective manner and ensure attractive returns. Capital budgeting decisions mainly focus on investing in various projects. This includes the criteria for choosing the appropriate and right projects that will ensure prompt returns, growth in the long term, firm’s value, etc. There are several measures that give an estimate of the firm’s return over several investment projects. To be able to determine specific projects’ value, the three most commonly used methods are: Payback method Net Present Value method (NPV) Internal Rate of Return method (IRR)

6. Conclusion With Distributed Energy, you can get investment options which work like annuities and diversify your portfolio by creating investments in solar projects. We resolve barriers and create the ideal conditions for investments. We provide our Investors a hassle-free platform to invest in renewable energy projects. Healthy Return Potential Tangible Asset Ownership Experienced Team We provide suitable investment structures for solar energy as an asset class with non- correlated and stable annuity stylereturns. Our hard assets will give you another layer of reassurance. We also use insurance, project contractsand other mechanisms to secure the investment. Our team draws on a wide and deep range of experience not only in the energy sector, but also as investors across various emergingmarkets.

7. Thank You December 2020 Get in Touch : info@de.energy or visit www.de.energy