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Lebanese Solar Water Heating Companies Evaluation - 140312.pdf


									The Evaluation Procedure of Solar Water
Heaters Companies in Lebanon

                   (Including Application Form)

Prepared by the Lebanese Center for Energy Conservation (LCEC)

Version 2
2 March 2014
Beirut, Lebanon

                                                                 Page 1 of 22

Background and Rationale
1. This evaluation procedure is a part of the efforts of the Lebanese Center for Energy
Conservation to keep developing the solar thermal market in Lebanon while maintaining a
good quality of work by solar water heaters (SWH) manufacturers, suppliers and installers.

2. The goal is to increase the level of consumers trust and confidence with the solar thermal
technology and with companies installing these systems. To achieve this, the LCEC is aiming to
rate companies according to the services they provide to their customers. Only the top rated
companies and products will be eligible to benefit from the 200 USD subsidies provided by the
Ministry of Energy and Water through the LCEC.

3. The solar water heaters market in Lebanon has witnessed an outstanding increase since 2009,
reaching a current rate of installations equal to 50,000 square meters per year. This market
growth was mainly due to the different initiatives of the “Global Solar Water Heating Market
Transformation and Strengthening Initiative (GSWH)” funded by the Global Environment
Facility (GEF) and managed by UNDP Lebanon. This initiative succeeded in creating a network
of national players that joined efforts towards SWH market development.

4. The GEF initiative aimed at accelerating the market development of solar water heating in
Lebanon. It has an objective to facilitate the installation of 190,000 square meters of new
installed collector area over the duration of the project (2009-2014), an annual sale of 50,000 m2
reached by the end of the project (2014), and with expected continuing growth to reach the set
target of 1,050,000 m2 of total installed SWH capacity by 2020.

5. Now that the GEF-UNDP initiative has ended, the current evaluation procedure plays an
important role in achieving the 2020 goal.

General Requirements and Conditions
6. All SWH companies working in Lebanon and interested to be qualified by the LCEC must fill
in the attached application form.

7. Interested SWH companies are requested to send the filled application forms in sealed
envelopes to the LCEC offices before Monday, 11 April 2014 at 3:00 p.m. All application forms
received after this date will not be evaluated and will be archived at LCEC until the next round
of evaluation.

8. At this stage, it is important to note that only companies that had filled the online
questionnaire (developed by the consulting firm Paragon on behalf of UNDP Lebanon) are

                                                                                      Page 2 of 22
eligible to fill out the application form. Companies that failed to fill in the online survey will
not be evaluated at this stage.

9. LCEC would like to remind all companies that the questionnaire was available online
between 8 and 27 January 2014, and the link was disseminated via direct email to companies
and the LCEC’s good-to-know emails. Companies that did not fill the questionnaire will have
the chance to do so in the coming phases of evaluation.

10. A re-application window will be opened in the following time intervals for additional
rounds of evaluation:
     - 16 June to 20 June 2014;
     - 15 September to 19 September 2014;
     - 8 December to 12 December 2014.

11. Companies that fail to qualify in a given round are eligible to resubmit their application only
once per year and only on the proposed date intervals.

12. The application form must be submitted in one original and one copy. The original and the
copy of the application form will be delivered in the same sealed package, labeled “Application
Form to the Solar Water Heater Companies’ Evaluation”.

13. The envelope must clearly show the name of the company.

14. The envelope must be addressed to the following address:
              Lebanese Center for Energy Conservation
              Attn.: Mr. Elie Abou Jaoudeh- LCEC Energy Engineer
              Ministry of Energy and Water, Corniche du Fleuve, Beirut, Lebanon
              Tel: +961-1-565108

15. Companies are expected to abide by the report sectioning that is described in section 8. All
information included in this questionnaire by the companies should be backed by official
documents as requested. Missing proof will null its respective grade.

16. The grading table is provided in Annex I.

17. The ranking table is provided in Annex II.

18. LCEC reserves the right to contact any reference whether he/she was provided in the
submittal or not. LCEC also reserves the right to visit installations after coordinating with the
installer and the customer.

                                                                                       Page 3 of 22
19. Applicants have to fill out the data starting from page 5 until page 12 then the documents
have to be signed and stamped. All tables that are filled by the applicant should also be signed
and stamped. It is not required to sign and stamp documents such as data sheets, certifications,

20. All information is confidential and will not be shared with anyone outside the evaluation

21. Applicants are expected to highlight areas of importance in catalogues and data sheets.

22. Applicants are expected to fully abide by the template and annexes that follow, including
the order of distribution of files. LCEC reserves the right to directly discard any applicant who
fails to abide by the template or fails to provide all required documents.

23. This document is prepared by Mr. Elie Abou Jaoudeh, Renewable Energy Specialist- United
Nations Development Programme (UNDP) and Lebanese Center for Energy Conservation
(LCEC). The document is reviewed by the LCEC Engineering Team.

24. Any questions or comments should be sent to the email:, no
comments or answers will be given except if the questions were sent to the above email address.

                                                                                     Page 4 of 22
                  Application Form

       [Insert Applicant/ Company

[The coming sections need to be filled by the applicant and presented in the
same order that they exist in this document. Annexes should also be
included in the same distribution that is presented in Section 8 of this

                                                                   Page 5 of 22
A. Company Information

Company Full Name:

Contact Person/Company Representative:



Company Address/Mailing Address:

                                         Page 6 of 22
1. General Information
 Table 1: Company General Information
 Company registration type:
 Registration year:
 Annual Turnover:
 Total Number of

The annual turnover sheet is to be filled as per table 2 below:
 Table 2: Annual Turnover Sheet
   Type of Financial Information                 Financial Information for past 3 years
                                              2011               2012                2013
 Information from Statement of Financial Position
 Total Assets (TA)
 Total Liabilities (TL)
 Total Equity/Net Worth (NW)
 Current Assets (CA)
 Current Liabilities (CL)
 Working Capital (WC)
 Information from Income Statement
 Total Revenue (TR)
 Revenue from Solar Water
 Heating Projects
 Profits Before Tax (PBT)
 Cash Flow Information
 Cash flow from operating

Accompanying documents for this section are to be included in Part 1 of the application, see
section 8, report distribution.

Company registration types include but not limited to:
 - Proprietorship: Unique Owner
 - General Partnership (SNC)
 - Partnership in Commendams (SCS)
 - Joint Stock Company (SAL)
 - Limited Liability Company (SARL)
 - Corporation in Commendams (SCPA)
 - Holding Company
 - Foreign Corporation

                                                                                     Page 7 of 22
2. Company Experience
            Table 3: Company Experience
            Small Scale Systems Installed
            Number of projects installed since company
            Number of projects installed in 2013
            Total hot water production per day of all projects
            Hot Water Production per day for Projects Installed
            in 2013 (Liters)
            Large Scale (Collective) Systems Installed
            Number of projects installed since company
            Number of projects installed in 2013
            Total hot water production per day of all projects
            Hot Water Production per day for Projects Installed
            in 2013 (Liters)
            Solar Panels Manufacturing Experience
            (Indicate timeline):

Small scale systems denote installations that produce less than 500 liters of hot water
production per day.

For this section the company should include 2 lists with the installed projects. The list for small
scale systems should include customer name and phone number and preferably the size of the
system, in liters as per table 4. The list for large systems shall include customer name and phone
number, system size in liters hot water produced per day and square meters of panels, tank size
in liters, type of panels as per table 5.

Accompanying documents for this section should be included in Part 2, see section 8.

    Table 4: Small Scale Projects List
    Customer Name                    Customer Phone Number             System Size


                                                                                       Page 8 of 22
Table 5: Collective Solar Water Heating Systems Project List
Customer Name           Contact    Location System        Panel    Panel    Tank
                        Number                Size        Area     Type     Size
                                              (Liters)    (sqm.)            (Liters)


                                                                           Page 9 of 22
3. Staff and Employees
                      Table 6: Staff and Employees Summary Table
                      Number of Full Time Employees
                      Number of Part Time Employees

Full time employees should be registered by the company with the National Social Security
Fund of Lebanon (NSSF).

This section should include a list with the names, tasks of the employees and if they have NSSF
or not; as per table 4 below.

Note: NSSF documents will not be required, but if the company is found to have presented
wrong information, the company will be blacklisted from any LCEC current and future activity.

Table 7: Employee Name List
Full Name                         Position/Task                      NSSF (Yes/No)

Part 3 should include the list of information as required in this section, see section 8.

                                                                                        Page 10 of 22
4. Staff Qualifications and Experience
Table 8: Company’s Staff List
Company Owner/President              a.   Degree
                                     b.   Years of Experience
First Engineer                       a.   Degree
                                     b.   Years of Experience
                                     c.   Certifications
Second Engineer                      a.   Degree
                                     b.   Years of Experience
                                     c.   Certifications
First Foreman/Technician             a.   Degree
                                     b.   Years of Experience
                                     c.   Certifications
Second Foreman/Technician            a.   Degree
                                     b.   Years of Experience
                                     c.   Certifications
First Installer                      a.   Years of Experience
                                     b.   Certifications
Second Installer                     a.   Years of Experience
                                     b.   Certifications

All curriculum vita (CV’s) of the staff that will be graded are to be included in this section. In
case the company has multiple owners, please indicate the one that monitors the day to day
operations of the company closest. For the rest of the positions, please indicate the 2 of each that
the company wishes to be graded. For the case of installers, please only include the years of
experience they have, a whole CV is not necessary.

All documents for this section will be included in Part 4 as explained in section 8.

                                                                                       Page 11 of 22
5. Products
1. Systems
Contractors are allowed to submit more than one type of each product but they are expected to
list the different combinations that will eventually be evaluated. For example, a contractor who
has 2 types of panels and 2 types of tanks can submit 4 different systems. Each system will have
a code name, and this code name should appear in future bills produced by the contractor. The
same table should be filled for integrated systems. Combinations that are not submitted in the
table below will not be evaluated.

Table 9: System Descriptions
System Code Name      Panel Code                   Tank Code                  Controller

a. Panels
Solar panels will be graded according to their quality and certifications. The graded items are:
Internal Pressure Test, High temperature resistance test, exposure test, external and internal
thermal shock tests, rain penetration test, freeze resistance test, mechanical load test, impact
resistance test. The mentioned tests all form part of the NL EN 12975 procedure. Equivalent
tests can be submitted such as NL EN 12976 and 12977, where EN12975 does not apply.
Manufacturers with Solar Keymark certifications will get additional points.

b. Storage Tanks
Storage tanks will be scored according to their material and the internal coating of the tanks.
Materials that are not liable to rusting such as copper, aluminum, epoxy internal coating,
etc…get full grade.

c. Controller
The contractor shall specify the mode of operation of each system and include data sheets for
the controller used. The data sheets should also include the type of sensors used and their

2. Other Equipment
a. Piping
The contractor shall specify the types of piping and their respective manufacturer that is used in
the installations. Several types can be included.

                                                                                     Page 12 of 22
b. Valves
The contractor shall specify the types of valves that are used in the installations. Several types
can be included.

c. Calcification Measures
Water in Lebanon generally contains high amounts of calcium compounds that can clog pipes,
heat exchangers, and solar panels. The company should include the method, if necessary, that
they use to ensure that their systems don’t face problems with the quality of water present in

Each part should include the data sheet of the specific equipment and its original certificates
when available. If the certificates are not included, the grade will be zero, even if the catalogue
or data sheets specified that the product is certified.

Catalogues and data sheets should be clearly labelled and marked by the contractor. Documents
for this section are to be included in Part 5, as described in section 8.

                                                                                      Page 13 of 22
6. Company Reputation
Customer Feedback: LCEC will contact customers of the company as listed in the project list,
and assess their feedback on the company’s work and support. The final grade would be a
percentage of the customers contacted who approve of the company’s work.

Project Execution: LCEC will visit units installed by the company and assess its capability based
on the workmanship and professionalism of the installations. The value would be a percentage
of the installations visited that are well executed.

Maintenance Contracts Values: The total value in USD of all the maintenance contracts that the
company holds. This does not include the maintenance guarantee that the company provides
when selling a solar system.

An example on how to calculate the Customer Feedback and the Project Execution values is
given below:
  - Let us assume that LCEC contacted 20 customers
  - 15 of them approved of the company’s work, thus 75%
  - Customer feedback is graded on 80
  - Thus the company will score: 75% of 80 = 60

Applicants can include documents relevant to the above criteria in Part 6, see section 8.

                                                                                     Page 14 of 22
7. Bonus Points
The previous 6 sections allow companies to reach the full grade (1000 points) of the evaluation,
but companies can collect bonus points based on the below criteria:

Membership in the World Energy Council (WEC) Lebanon Committee: (YES/NO) Include
type of membership)

Number of relevant LCEC workshops/trainings attended:

List of Panels Tested at IRI:

WEC Membership: The Lebanon Committee of the World Energy Council (WEC) is national
representative of Lebanon in the international WEC community. LCEC encourages all
companies, consultants, and experts working in the energy efficiency and renewable energy
sectors to join the WEC Lebanon Committee. Being a member of WEC is a great asset to private
sector entities in terms of visibility, marketing, and most importantly scientific and engineering

LCEC Workshops: LCEC organized workshops and trainings which were attended by
representatives of the company. An extensive list should be included with name of attendee(s),
title of workshop, and description as per table 10 below.

IRI Testing: Companies using solar panels that were tested at the IRI facility.

Supporting documents should be included in Part 7, as explained in section 8.

Table 10: List of relevant trainings and workshops attended by company representatives
Company Representative           Title of Workshop/Training        Date

                                                                                     Page 15 of 22
8. Report Distribution
                              Section 1           General Information Page
       Part 1                                     with Table 2
                              Section 2           Company Registration
                              Section 3           The Latest 2 Financial Audit Report
                              Section 4           ‫براءة ذمّة مالية‬
                              Section 1           Company Experience Page
       Part 2                 Section 2           List of Small Scale Projects (Table 4)
                              Section 3           List of Large Scale Projects (Table 5)
       Part 3                 Section 1           Staff and Employees Page
                              Section 2           Table 7
       Part 4                 Section 1           Staff Qualifications and Experience
                              Section 2           Curriculum Vita
                              Section 1           Products Page
                              Section 2a          1st Solar Panel Data Sheets and
                                                  respective certification
                              Section 2b          2nd Solar Panel Data Sheets and
                                                  respective certification
                              Section 2…          x…Solar Panel Data Sheets and
                                                  respective certification
                              Section 3a          1st Storage Tank Data Sheets and
       Part 5
                                                  respective certification
                              Section 3…          x…Storage Tank Data Sheets and
                                                  respective certification
                              Section 4a          Controller Data Sheet and respective
                              Section 5a          Piping Data Sheets
                              Section 6a          Valve Data sheets
                              Section 7           Calcification Measure Description
       Part 6                 Section 1           Company reputation/Empty section
                              Section 1           WEC Membership
       Part 7                 Section 2           List of Workshops/Trainings
                              Section 3           IRI testing certificates

The application should be presented with the same sectioning as included in the table above.
The tables should be filled as included in this template and they have to be presented in the
same format.

                                                                                    Page 16 of 22
ANNEX I- Scoring Table
The six sections of the application form are graded according to different criteria. In addition,
section 7 offers bonus points for companies to improve their grades. A summary table here
below the different total scores.

Section 1                         General Information                                 70
Section 2                         Company Experience                                  220
Section 3                         Staff and Employees                                 70
Section 4                         Staff Qualification and Experience                  170
Section 5                         Products                                            295
Section 6                         Company Reputation                                  175

TOTAL                                                                                 1,000

Section 7                         Bonus Points                                        200

No.     Criteria                   Range                        Max        Points     Remarks

      1. General Information (70 PTS)
1.1     Company Registration      Joint Stock Company           20         20
        Type                      Limited Liability                        20
                                  Proprietorship                           10
                                  Other                                    5
1.2     Years since registration  >10                           15         15
                                  5-10                                     5
                                  <5                                       0
1.3     Annual Turnover (USD) >2,000,000                        20         20
                                  200,000-2,000,000                        10
                                  <200,000                                 5
1.4     Number of Skilled         >20                           15         15
        Employees                 10-20                                    10
        (Administrative,          <10                                      5
        engineers, foremen)
      2. Company Experience (220 PTS)
2.1     Small Scale Projects      >1000                         50         50
        (Number)                  250-1000                                 25
                                  50-250                                   15
                                  1-50                                     5

                                                                                       Page 17 of 22
2.2        Large Scale Projects      >25                   50   50
           (Number)                  10-25                      25
                                     1-10                       5
2.3        Large Scale Projects      >70,000               70   70
           (In Liters)               25000-70000                50
                                     7500-25000                 25
                                     1-7500                     5
2.4        Manufacturing             If Yes                50   50
      3.    Staff and Employees (70 PTS)
3.1        Full Time Engineers        >5                   20   20
                                      2-5                       10
                                      <2                        5
3.2        Full Time Technicians      >5                   20   20
                                      2-5                       10
                                      <2                        5
3.3        Full Time Installers       >10                  15   15
                                      5-10                      10
                                      <5                        5
3.4        Part Time Engineers        >3                   5    5
                                      <3                        0
3.5        Part Time Technicians      >3                   5    5
                                      <3                        0
3.6        Part Time Installers       >3                   5    5
                                      <3                        0
    4.      Staff Qualification and Experience (170 PTS)
4.1a       Company Owner Degree Relevant to SWH            10   10
                                      Non-Relevant              5
                                      None                      0
4.1b       Company Owner              >10                  10   10   In years
           Experience                 3-10                      5
                                      <3                        0
4.2a       First/Lead Engineer        Relevant             15   15
           Degree                     Non Relevant              5
4.2b       First/Lead Engineer        >10                  15   15   In years
           Experience                 3-10                      10
                                      <3                        5
4.2c       First/Lead Engineer        If Yes               5    5
4.3a       Second Engineer Degree Relevant                 10   10
                                      Non Relevant              5
4.3b       Second Engineer            >10                  10   10   In years
           Experience                 3-10                      5

                                                                      Page 18 of 22
                               <3                          0
4.3c   Second Engineer         If Yes                5     5
4.4a   First/Lead Technician   Relevant              10    10
       Degree                  Non Relevant                5
                               None                        0
4.4b First/Lead Technician     >10                   10    10   In years
     Experience                3-10                        5
                               <3                          0
4.4c   First/Lead Technician   If Yes                5     5
4.5a   Second Technician       Relevant              10    10
       Degree                  Non Relevant                5
                               None                        0
4.5b Second Technician         >10                   10    10   In years
     Experience                3-10                        5
                               <3                          0
4.5b Second Technician         If Yes                5     5
4.6a First/Lead Installer      >10                   10    10   In years
     Experience                3-10                        5
                               <3                          0
4.6b First/Lead Installer      If Yes                10    10
4.7a Second Installer          >10                   10    10   In years
     Experience                3-10                        5
                               <3                          0
4.7b Second Installer          If Yes                10    10
    5. Products (295 PTS)
5.1a Panel                     Internal Pressure     130   15   According to
      Certifications/Tests     High Temp. Resist.          10   certification
                               Exposure Test               10   and testing
                               Ext. Thermal Shock          10
                               Int. Thermal Shock          10
                               Rain Penetration            15
                               Mechanical Load             10
                               Freeze Resistance           10
                               Impact Resistance           10
                               Thermal Performance         30
5.1b Panel Solar Keymark       If yes                50    50
5.2a Storage Tanks Internal    Anti-Rust             25    25
     Coating                   Normal/None                 0

                                                                 Page 19 of 22
5.2b Storage Tanks               If yes             15     15
5.3a Controller Certifications   If yes             15     15
5.3b Sensor Certifications       If yes             10     10
5.4  Piping Quality              High Temperature   10     10
5.5   Valve Quality              High Temperature   10     10
5.6   Anti-Calcification                            30     30
    6. Company Reputation (175 PTS)
6.1   Customer Feedback       Approval Percentage   80     Calcula   =80xAP/100
                              (AP)                         ted
6.2   Project Execution       Approval Percentage   75     Calcula   =75xAP/100
      Quality                 (AP)                         ted
6.3   Maintenance Contracts   >75,000               20     20
      Value (USD)             25,000 – 75,000              10
                              <25,000                      5
    7. Bonus Points (200 PTS)
7.1   WEC Membership          Corporate Platinum    100    100
                              Corporate Gold               60
                              Corporate SME                30
7.2   IRI tested panels       If yes                30     30
7.3   IRI Tested hot water    If yes                30     30
7.4   LCEC relevant           >15                   40     40
      workshops/training      5-15                         20
      attended (Number)       <5                           10
TOTAL GRADE                                         1000
BONUS POINTS                                        200
FINAL GRADE                                         1200

                                                                     Page 20 of 22
ANNEX II- Company Ranking Tables
Companies will be ranked according to their scores. The table here below shows the categories
for ranking companies, including the special criteria that need to be met by companies. The
table also shows the benefits of each ranking category.

Table 11: Rating Explanation
Ranking                 Evaluation Score           Special Requirements     Benefit from USD 200
                                                   Level                    subsidy
3-Star Companies         Above 800                 High (shown in table     Yes
Qualified Companies      Above 700                 Medium (shown in         Yes
                                                   table below)
Passing                  Above 500                 Not Applicable           No

Failing                  Below 500                 Not Applicable           No

Companies that will achieve a score of 800 or higher will be shown in the LCEC official list of
SWH companies (benefitting from the 200 USD grant subsidies) as a 3-Star company.

Companies that will achieve a score between 700 and 800 will be shown in the LCEC official list
of SWH companies (benefitting from the 200 USD grant subsidies).

Companies that will achieve a score between 500 and 700 will not be shown in the LCEC official
list of SWH companies (benefitting from the 200 USD grant subsidies). However, they will be
listed on the LCEC database of SWH companies.

Companies that will achieve a score below 500 will not be shown in any of the LCEC lists.

Table 12: Special Requirements Level
No.     ITEM                                Medium Level                  High Level
5.1a    Panel Certification Score           >90                           >90
5.2a    Storage Tank Internal Coating       Anti-Corrosion                Anti-Corrosion
5.6     Anti-Calcification Measures         Required                      Required
6.1     Customer Feedback                   >68                           >72
6.2     Project Quality                     >60                           >63
1.2     Years Since Registration            -                             >10
2.1     Number of Small Scale Projects      -                             >250
3.1     Number of Engineers                 -                             >2
        Warranty                            >5                            >5

                                                                                     Page 21 of 22
ANNEX III- Detailed Bill Format
Any company that succeeds in the evaluation is required to clearly show the details of the
system they are installing on their bills. Any bill that doesn’t contain the below information
will not be considered for a USD 200 subsidy.

The detailed bill should clearly show the below mentioned information:

  -   The System Code Name as assigned in Table 9
  -   Solar Collector Code with Manufacturer and number of panels (or number of tubes)
  -   Tank Manufacturer and Code
  -   Controller
  -   Anti-Calcification Measure
  -   Warranty Period

                                                                                    Page 22 of 22

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