Business plan and financial projections, 16 October 2026, draft for internal discussion

US residential solar entry: Connecticut, Rhode Island, Massachusetts

An American solar company backed by an Indian EPC group, with Dan Katzman as US operating partner and theStacc running demand generation.

1. Executive summary

The proposition. Form a US domestic corporation ("NewCo", Connecticut) that sells and delivers residential solar, storage and attached roofing/HVAC in Connecticut, Rhode Island and Massachusetts. Sales are 1099 commission reps recruited and led by Dan Katzman. Lead generation, design, permitting packets, procurement and finance paperwork run from Surat, India, on the back of an operation already doing 300 to 400 installs a month there. Installation is subcontracted to an established local EPC at a labour-only rate. NewCo owns the customer, the finance-partner accounts and the equipment supply.

Why now. New England pays 30 to 37 cents per kWh, the highest retail power prices on the mainland. The US residential market is down about 20% in 2026 with another 10 to 15% expected in 2027, which has put experienced reps (PosiGen bankruptcy, Trinity departures) and distressed installers on the market cheaply. The homeowner tax credit is gone, so 70 to 80% of deals are now third-party-owned (TPO) through LightReach and Enfin, which favours operators with low installed cost and clean paperwork over operators with big local overhead.

The economics in one line. On a 9 kW system at a $2.70/W red line, NewCo makes $1,800 gross per deal riding a partner's finance accounts, $3,150 on its own accounts, and $5,400 once it also procures equipment directly. The plan is to move through those three stages inside 15 months. Fixed cost is about $24k a month because almost everything is variable or offshore.

The ask. $500k of committed capital released in three tranches against measured gates: a $75k 90-day pilot, a $175k build-out once lead cost and cancellation rates are proven, and $250k of working capital as volume passes 30 installs a month. Base case reaches EBITDA break-even in month 10, needs $400k of peak cash, and produces $1.8M EBITDA in year two on $17M revenue and $2.7M in year three on $22M. The conservative case does not break even inside two years and is why the gates exist.

Conservative
$-1.08M
peak cash need, month 19
M20
EBITDA break-even
$-190k
Year 2 EBITDA
Base
$-402k
peak cash need, month 9
M10
EBITDA break-even
$1.79M
Year 2 EBITDA
Optimistic
$-204k
peak cash need, month 5
M7
EBITDA break-even
$5.51M
Year 2 EBITDA

2. Company and team

EntityUS LLC/C-corp (Connecticut), HIC licences in CT, MA, RI; master electrician (E1) partner on the licence; workers comp for the single W-2 employee. Branded and presented as an American company backed by an Indian group.
OwnershipIndian group (Keyur Rakholiya and partners) majority; Siddharth Gangal (growth, organiser); Dan Katzman salary plus 5 to 10c/W override and vesting equity.
US boots on the groundDan Katzman: American face, rep recruiting and management, EPC and finance-partner relationships, NOI software. One junior ops person in Connecticut for AHJ permit hand-delivery, site photos and rep support.
India back office (Surat)3 FTE at launch rising to 6: system design, permit packets and PE-stamp coordination, interconnection filings, LightReach/Enfin/Climate First submissions, procurement, rep scheduling, AI-assisted appointment confirmation. Already serving US design and permit clients today.
Install partnerHelioSolar (Brian Tilford, CT) or Team Sunshine as labour-only subcontractor at a target $0.80/W, operating from a dedicated LLC. Massachusetts HVAC/solar firm as a second partner once its recapitalisation closes.
Finance partnersLightReach and Enfin (TPO), Climate First Bank / OneEthos (loans), CT Green Bank SSA approval, Midas Wealth (tax-equity prepaid lease) as a third product later.

3. Market

Bottom-up sizing for the three launch states. Figures are order-of-magnitude estimates assembled for planning and should be replaced with SEIA state data before any investor use.

LayerDefinitionEstimate
TAMOwner-occupied single-family homes in CT, MA, RI with a viable roof (roughly 2.8M owner households, about 40% suitable) at a 9 kW system and $3.20/W contract value~1.1M homes, ~$32B lifetime
SAMAnnual residential installs in the three states after the 2026 downturn (about 25k to 30k systems a year) times 9 kW times $3.20/W~$750M to $850M per year
SOMNewCo at 400 to 900 installs a year (base case years 2 to 3)1.5% to 3% of SAM; $9M to $22M revenue at red line

Demand drivers. Retail power at 30 to 37c/kWh and rising; ageing housing stock (40 to 60 years) being retrofitted; heat-pump and storage incentives in CT and MA; Connecticut's Energy Storage Solutions programme, where a $10k battery can return roughly $14k over 10 years; 30% of solar installs needing a roof. Headwinds. Market down 20% in 2026 and likely 10 to 15% more in 2027; 25D homeowner credit expired; FEOC content rules on TPO equipment; a possible 40c/W tariff on non-domestic modules from January 2027; Massachusetts buyers cancel about one in five signed contracts.

Competition. National TPO originators (Sunrun, Palmetto, Freedom Forever), regional EPCs (HelioSolar, Team Sunshine, the MA HVAC/solar firms), and a long tail of 3-year-lifespan dealers now exiting. Positioning: price and service over brand. NewCo's cost structure (offshore back office, no W-2 sales force, labour-only install) is 15 to 40c/W below a full-service local EPC, which funds either a sharper price or a fatter rep commission in a market where reps follow the money.

4. Products and offer

ProductShare of dealsCustomer valueNewCo economics
TPO lease/PPA (LightReach, Enfin)70 to 80%$0 down, 10 to 30% below utility rate, no tax appetite neededPaid at red line by financier; AVL equipment only; funded 70% at NTP, 30% after install
Loan or cash (Climate First)15 to 25%Lowest lifetime cost, non-FEOC equipment allowedHighest gross per watt until the 40c/W tariff lands; then equivalent to TPO
Battery attach (EcoFlow 10 kW / 13 kWh at ~$8k cost)Target 25 to 35% in CTBackup plus ESS programme payments$2k to $3k extra gross per attach, not in the base model
Roofing and heat pumpsRoof on ~30% of installsOne contractor, one package, state incentivesPartner-delivered; referral margin only, not in the base model
Prepaid lease / tax-equity LLC (Midas Wealth)Opportunistic from year 2Customer keeps the 30% credit via investor structureComplex; only after core products run smoothly

5. Go-to-market

6. Operations and launch plan

  1. Weeks 1 to 8 (setup): entity, bank account, HIC licences, E1 agreement, insurance, SSA template approved by CT Green Bank, labour-only contract with the install partner, dealer applications to LightReach, Enfin and Climate First (ride partner accounts if declined), software stack (Aurora or OpenSolar generation data, CRM, dialer), office lease, 5 reps recruited and trained.
  2. Per deal: appointment set from India, rep closes on Zoom, SSA signed digitally, Surat builds the permit packet within 72 hours, CT ops person hand-delivers to the AHJ, financier issues NTP and funds 70%, equipment ordered (partner inventory or safe-harboured AVL stock), glass on roof in about 45 days, photos and serials submitted, balance funded within 10 working days.
  3. Procurement roadmap: partner inventory in months 1 to 9; own financier accounts around month 10; direct FEOC-compliant supply (Satpak Texas plant from Q1 2027 once AVL-listed, EcoFlow for storage, domestic racking from IronRidge or SnapNrack) around month 15.
  4. Controls: daily cash and P&L review, rep advances capped, cancellation tracking by rep and territory, one SSA template, reserve of one month of fixed cost held at all times.

7. Unit economics

The rep keeps the spread between the sale price and the red line, so NewCo's gross is red line minus installed cost. The three stages below are the plan's margin roadmap; the conservative, base and optimistic cases differ mainly in how fast NewCo moves from A to C and in what a signed deal costs in advertising.

StageRed line $/WInstalled cost $/WGross $/WGross per 9 kW dealAfter override and lead fee
A. TPO via partner EPC accounts2.702.500.20$1,800$1,200
B. TPO on own LightReach/Enfin accounts2.702.350.35$3,150$2,550
C. Own accounts + direct procurement2.702.100.60$5,400$4,800
D. Cash/loan non-FEOC (<=25% of deals)2.301.900.40$3,600$3,000

Ad cost per installed deal under three funnel assumptions (cost per lead, lead-to-appointment, appointment-to-close, cancellation): Dan's heuristic $50 / 60% / 30% / 10% gives about $310; the realistic case $80 / 40% / 20% / 20% gives about $1,250; the pessimistic case $120 / 30% / 15% / 25% gives about $3,550. Feeding ten reps at 7 to 10 appointments each per week needs 300 to 430 appointments a month, which at $200 per set appointment is $60k to $86k of monthly ad spend. The plan therefore starts with five reps.

8. Financial projections (36 months, three scenarios)

Annual revenue at red line 0.0M 10.8M 21.6M 32.4M 43.3M conservative Year 1: 2.8M base Year 1: 5.9M optimistic Year 1: 10.8M Year 1 conservative Year 2: 7.4M base Year 2: 17.0M optimistic Year 2: 34.3M Year 2 conservative Year 3: 8.7M base Year 3: 22.1M optimistic Year 3: 43.3M Year 3 conservative base optimistic Annual EBITDA -0.6M 1.3M 3.2M 5.1M 7.0M conservative Year 1: -0.6M base Year 1: -0.3M optimistic Year 1: 0.6M Year 1 conservative Year 2: -0.2M base Year 2: 1.8M optimistic Year 2: 5.5M Year 2 conservative Year 3: 0.3M base Year 3: 2.7M optimistic Year 3: 7.0M Year 3 conservative base optimistic

Annual summary

MetricConservative Y1Conservative Y2Conservative Y3Base Y1Base Y2Base Y3Optimistic Y1Optimistic Y2Optimistic Y3
Installs1133063602446989114441,4111,780
Signed deals1984254803989201,1526921,7542,112
MW installed1.02.83.22.26.38.24.012.716.0
Revenue at red line$2.75M$7.43M$8.75M$5.93M$16.97M$22.15M$10.79M$34.29M$43.26M
Gross profit$204k$1.25M$1.94M$600k$3.56M$4.92M$1.50M$7.62M$9.61M
Ad spend$395k$850k$960k$398k$920k$1.15M$311k$790k$950k
Director override$102k$275k$324k$219k$628k$820k$400k$1.27M$1.60M
Fixed cost$310k$406k$478k$312k$426k$511k$322k$469k$563k
EBITDA$-569k$-190k$290k$-257k$1.79M$2.71M$601k$5.51M$7.03M
EBITDA margin-20.7%-2.6%3.3%-4.3%10.6%12.2%5.6%16.1%16.3%
Installs per month 0 37 75 112 150 M1 M7 M13 M19 M25 M31 conservative base optimistic Monthly EBITDA (USD) -68k 97k 262k 427k 592k M1 M7 M13 M19 M25 M31 conservative base optimistic Cumulative cash (USD, before funding) -1,075k 2,260k 5,595k 8,931k 12,266k M1 M7 M13 M19 M25 M31 conservative base optimistic

Base case, monthly, year 1 and year 2

MRepsSignedInstalls$/W costRevenueGrossAdsFixedEBITDANet cashCash
100.00.02.50$0k$0k$0k$24k$-24k$-69k$-69k
200.00.02.50$0k$0k$0k$24k$-24k$-49k$-118k
3512.00.02.50$0k$0k$12k$24k$-36k$-52k$-170k
4614.43.82.50$93k$7k$14k$24k$-34k$22k$-147k
5832.010.42.50$252k$19k$32k$24k$-43k$-101k$-248k
61040.017.22.50$417k$31k$40k$24k$-43k$20k$-228k
71040.028.22.50$684k$51k$40k$28k$-34k$-65k$-292k
81144.032.02.50$778k$58k$44k$28k$-34k$-77k$-370k
91248.033.32.50$809k$60k$48k$28k$-36k$-33k$-402k
101352.036.52.35$886k$115k$52k$28k$13k$1k$-401k
111456.039.72.35$964k$125k$56k$28k$17k$4k$-397k
121560.042.92.35$1.04M$135k$60k$29k$21k$7k$-390k
131560.046.12.35$1.12M$145k$60k$35k$23k$13k$-376k
141664.048.02.35$1.17M$151k$64k$35k$24k$-12k$-388k
151768.049.32.10$1.20M$266k$68k$35k$134k$132k$-257k
161872.052.52.10$1.28M$283k$72k$35k$145k$128k$-129k
171872.055.72.10$1.35M$301k$72k$35k$160k$147k$19k
181976.057.62.10$1.40M$311k$76k$35k$165k$126k$145k
192080.058.92.10$1.43M$318k$80k$36k$167k$162k$307k
202080.062.12.10$1.51M$335k$80k$36k$182k$168k$474k
212184.064.02.10$1.56M$346k$84k$36k$187k$147k$621k
222288.065.32.10$1.59M$353k$88k$36k$189k$182k$803k
232288.068.52.10$1.66M$370k$88k$36k$205k$188k$991k
242288.070.42.10$1.71M$380k$88k$36k$214k$176k$1.17M

Base case, year 3 by quarter

QuarterInstallsRevenueEBITDACash end
Y3 Q1220$5.35M$642k$1.74M
Y3 Q2230$5.60M$690k$2.35M
Y3 Q3230$5.60M$690k$2.96M
Y3 Q4230$5.60M$690k$3.57M
Conservative case, monthly, year 1 and year 2
MRepsSignedInstalls$/W costRevenueGrossAdsFixedEBITDANet cashCash
100.00.02.50$0k$0k$0k$24k$-24k$-69k$-69k
200.00.02.50$0k$0k$0k$24k$-24k$-49k$-118k
357.50.02.50$0k$0k$15k$24k$-39k$-49k$-167k
457.52.22.50$55k$4k$15k$24k$-36k$-2k$-169k
5615.05.62.50$137k$10k$30k$24k$-47k$-85k$-253k
6717.57.92.50$191k$14k$35k$24k$-49k$-22k$-275k
7820.012.02.50$292k$22k$40k$28k$-53k$-75k$-350k
8922.513.92.50$337k$25k$45k$28k$-56k$-62k$-412k
91025.015.82.50$383k$28k$50k$28k$-59k$-66k$-478k
101025.017.62.50$428k$32k$50k$28k$-57k$-61k$-539k
111127.518.82.50$456k$34k$55k$28k$-60k$-80k$-619k
121230.019.52.50$474k$35k$60k$28k$-64k$-65k$-684k
131230.021.42.50$519k$38k$60k$34k$-68k$-74k$-758k
141230.022.52.35$547k$71k$60k$34k$-36k$-55k$-813k
151332.522.52.35$547k$71k$65k$34k$-41k$-55k$-868k
161332.523.22.35$565k$73k$65k$34k$-40k$-38k$-906k
171435.024.42.35$592k$77k$70k$34k$-42k$-65k$-970k
181435.025.12.35$611k$79k$70k$34k$-40k$-39k$-1.01M
191537.526.22.35$638k$83k$75k$34k$-42k$-65k$-1.08M
201537.527.02.10$656k$146k$75k$34k$21k$20k$-1.06M
211537.528.12.10$683k$152k$75k$34k$26k$5k$-1.05M
221537.528.12.10$683k$152k$75k$34k$26k$13k$-1.04M
231640.028.12.10$683k$152k$80k$34k$21k$5k$-1.03M
241640.028.92.10$702k$156k$80k$34k$25k$23k$-1.01M
Optimistic case, monthly, year 1 and year 2
MRepsSignedInstalls$/W costRevenueGrossAdsFixedEBITDANet cashCash
100.00.02.50$0k$0k$0k$24k$-24k$-69k$-69k
200.00.02.50$0k$0k$0k$24k$-24k$-49k$-118k
3516.50.02.50$0k$0k$7k$24k$-31k$-54k$-171k
4826.45.62.50$136k$10k$12k$24k$-29k$45k$-126k
51055.017.42.50$423k$31k$25k$24k$-28k$-79k$-204k
61266.032.22.50$782k$58k$30k$24k$-15k$80k$-125k
71371.550.52.35$1.23M$159k$32k$29k$68k$1k$-123k
81477.058.02.35$1.41M$183k$35k$29k$84k$51k$-72k
91582.562.62.35$1.52M$197k$37k$30k$93k$80k$8k
101688.067.32.35$1.64M$212k$40k$30k$102k$87k$95k
111899.072.02.35$1.75M$227k$45k$30k$109k$86k$181k
1220110.078.52.10$1.91M$424k$50k$31k$297k$302k$483k
1320110.087.92.10$2.14M$475k$50k$37k$335k$332k$815k
1422121.093.52.10$2.27M$505k$54k$38k$357k$279k$1.09M
1524132.097.22.10$2.36M$525k$59k$38k$370k$391k$1.48M
1625137.5106.62.10$2.59M$576k$62k$38k$411k$397k$1.88M
1726143.0114.12.10$2.77M$616k$64k$39k$444k$399k$2.28M
1827148.5118.72.10$2.89M$641k$67k$39k$464k$438k$2.72M
1928154.0123.42.10$3.00M$666k$69k$39k$484k$456k$3.17M
2028154.0128.12.10$3.11M$692k$69k$40k$506k$484k$3.66M
2129159.5130.92.10$3.18M$707k$72k$40k$517k$458k$4.12M
2230165.0132.82.10$3.23M$717k$74k$40k$523k$514k$4.63M
2330165.0137.42.10$3.34M$742k$74k$40k$545k$522k$5.15M
2430165.0140.22.10$3.41M$757k$74k$40k$559k$504k$5.66M

Cash line is cumulative operating cash before any funding, so its minimum is the funding requirement. Revenue is booked at the red line; rep commission above the red line is paid by the financier or customer and never passes through NewCo's P&L. Conservative case assumes management keeps scaling despite losses; in practice tranche 2 would not be released and losses stop near $125k.

9. Use of funds and milestones

TrancheAmountReleased whenSpent on
1. Pilot$75kDay oneEntity, licences, SSA, insurance, office, software, 5 reps, $15k/month ads for 3 months, two months of fixed cost
2. Build-out$175kPilot shows ad cost per installed deal under $1,500 and cancellations under 20%Reps to 10 to 15, ads to $30k to $40k/month, second ops hire, Massachusetts launch, own financier accounts
3. Working capital$250kVolume passes 30 installs/monthEquipment deposits for direct procurement, 1.5 months of deals in flight, cancellation buffer; ideally replaced by a US bank line in year 2

Base case peak cash need is about $400k in month 9, so the $500k commitment leaves a 25% buffer. In the conservative case tranche 2 is never released and the loss is limited to roughly $100k to $125k. Milestones: first signed deal month 3, first funded install month 5, own financier accounts month 10, 50 installs a month by month 15, 500 installs trailing twelve months by month 22 (the threshold at which US residential solar companies become sellable), direct procurement live by month 15.

10. Pre-mortem

It is October 2028. NewCo has been wound down. Looking back, what happened?

CategoryFailure modeHow it played outLikelihoodImpact
AssumptionsLead cost was 3x the planSet appointments cost $400, close rates were 15%, each installed deal cost $3,500 in ads. Reps left within six weeks. The company kept hiring reps into a loss-making funnel.HighHigh
ExecutionNever got own finance accountsLightReach and Enfin held to the two-year rule. NewCo stayed at the partner's red line, making $1,800 a deal, and never covered fixed cost.MediumHigh
PeopleDan stepped backFive other ventures plus a dispute over override and equity. Recruiting, EPC relationships and the licence face went with him.MediumHigh
ExternalTariff and FEOC rulesThe 40c/W tariff landed, non-FEOC cash deals died, and the Satpak AVL listing slipped a year.MediumMedium
ExecutionCash flow stretchedVolume grew faster than the working-capital line. Equipment paid before the financier's balance arrived, cancellations at 25% left stranded inventory.MediumHigh
PeopleReputation hitAn accent-on-the-phone complaint went viral locally, followed by a one-star campaign. The "Indian company" framing stuck.LowMedium
ExternalMarket fell furtherResidential down another 20% in 2027; financiers tightened dealer terms; the partner EPC folded mid-pipeline.MediumMedium
AssumptionsMassachusetts too earlyOne in five signed deals cancelled, highest insurance cost, and a sceptical buyer base ate the margin.MediumLow

Top three mitigations. (1) Lead cost: run the 90-day pilot with 5 reps and $15k a month of ads before hiring anyone else; stop if installed-deal ad cost exceeds $1,500 or cancellations exceed 20%. Owner: Siddharth. (2) Finance accounts: apply on day one with the Indian P&L and install history; if refused, negotiate a 10c pass-through with a 12-month sunset and reapply quarterly. Owner: Dan. (3) Key-person: written comp with vesting, a second named E1 and a second EPC inside six months, all relationships held in NewCo's name. Owner: Keyur.

11. Assumptions and what is excluded

Sources: call with Dan Katzman (October 2026) for per-watt costs, red lines, rep compensation, funding timelines, market direction and partner names; theStacc and Keyur Rakholiya's team for India-side costs; market sizing from public household counts and 2025 to 2026 state install run-rates, to be verified against SEIA before external use. Lead-cost ranges are planning estimates and are the single most important number to measure in the pilot.