Business Analytics of RACV Community Solar Installation Promotion

Description:

This assignment requires you to analyse a data set (including performing a multiple regression analysis), interpret, and draw conclusions from your analysis. You are required to explain the Summary Output from your multiple regression analysis in a written report, which must also include TWO recommendations to the RACV Board.

The assignment must be completed individually and submitted electronically in CloudDeakin by the due date. When submitting electronically, you must check that you have submitted the work correctly by following the instructions provided in CloudDeakin. Hard copies or assignments submitted via email will NOT be accepted.

The data set is based on actual data provided by RACV Solar. For confidentiality and anonymity reasons actual data has been manipulated in the assessment task. Following is an introduction to this scenario and detailed guidelines

Scenario: RACV Community Solar Installation Promotion

In 2021, RACV Solar partnered with Geelong Sustainability to offer solar power generating and battery systems to households in the Geelong, Surf Coast and Otway region.

Key data from a sample of 250 clients who participated in the promotion is included in the data set in the Excel file which forms part of this assignment (2022 T1 RACV Solar Data Set A3).

As a commercial business RACV Solar is keen to convert an enquiry from a potential client into a confirmed commitment to purchase a solar installation. RACV Solar aspires to minimise the time between first enquiry and confirmed commitment (i.e., Conversion Period ).

The promotion with Geelong Sustainability provided potential clients with multiple points of contact. The main pathways were coming into an RACV Store or via the RACV Solar website. However, clients also made enquiries via RACV Solar's social media platforms (e.g., Facebook and Instagram) or by referral from other clients.

Every client enquiry was managed by one of RACV Solar's three salespeople Anand, Clayton, or Daiyu. The performance of RACV Solar's salespeople is measured according to time to close the deal , revenue generated (i.e., System Cost ), and client satisfaction.

The size of a solar electricity system is measured in kilowatts (kW). This represents the capacity of a solar installation at maximum efficiency. Larger systems have greater capacity to generate electricity than smaller systems. The amount of electricity generated depends on several factors, including system size, orientation (e.g., if the system faces north or west), and shading (i.e., if any shade, for example from nearby trees, falls on the solar panels during the day). Electricity generated is measured as kilowatt hours (kWh), the number of hours the system will power appliances with a requirement of 1,000 watts (i.e., one kilowatt).

The cost of the installation for the client is revenue for RACV Solar. Cost depends on several factors, including the size of the system, the complexity of the system (e.g., one bank of panels facing north and another bank of panels facing west), access to the site, and other factors (e.g., clients are offered different models of solar panels and extended warranties).

None of the customers in this promotion disconnected from the national electricity grid. In the evenings and during daylight hours where a solar installation did not generate enough electricity to meet their needs the client would import (and pay their electricity supplier for) electricity from the national grid. Where a solar installation generates more electricity than is required, the surplus can be exported to the electricity grid. Electricity customers will be paid for the amount of electricity exported to the grid. This Revenue from Surplus is based on the kWhs exported multiplied by the feed-in tariff (price per kWh) offered by the customer's electricity supplier.

To track the benefit they receive, RACV Solar's clients were asked to provide details of the cost of electricity consumed in the year prior to the new system being installed. Based on details of the installation (size, orientation, shading, etc) RACV Solar can estimate the amount of electricity generated by the installation. RACV Solar's clients will not have to purchase this from their electricity supplier, generating a saving. If the annual surplus revenue is added to the annual electricity saving an annual payoff can be calculated. This is the financial benefit to an RACV Solar client following installing a new system.

At the conclusion of each installation RACV Solar asks their clients to rate their experience, on a scale of zero (completely unsatisfied) to 100 (completely satisfied). Using this feedback RACV Solar sorts clients into four groups: Unhappy, Acceptable, Satisfied, and Delighted.