Executive Summary
The project Innovative Cooling System for Large Buildings and Facilities Using Indirect Evaporative Cooling Technologies Supported by Solar Energy, with the Possibility of Integrating An in the energy and environment sector in Jordan targets a promising market opportunity. With an investment of ٣٥٠٬٠٠٠ JOD, it achieves a Net Present Value of -٢٣٤٬٦٩٧ JOD, an Internal Rate of Return of -٢٢٪, and a payback period of — years.
| Indicator | Value |
|---|---|
| Initial Investment | ٣٥٠٬٠٠٠ JOD |
| First Year Revenue | ١٢٠٬٠٠٠ JOD |
| Annual Growth (CAGR) | ١٠٪ |
| Net Margin (Y1) | -٣٨٪ |
| Return on Investment (Avg.) | -١٢٪ Annually |
| Net Present Value (NPV) | -٢٣٤٬٦٩٧ JOD |
| Internal Rate of Return (IRR) | -٢٢٪ |
| Profitability Index (PI) | ٠ |
| Payback Period | — |
| Break-even Year | — |
| Expected NPV (Probability-Weighted) | -٢٣٢٬٦٧٩ JOD |
Assumptions and Basis
The figures in this study are based on project data, the nature of the energy and environment sector in Jordan, and local market indicators, according to the following assumptions:
| Assumption | Value |
|---|---|
| Initial Capital | ٣٥٠٬٠٠٠ JOD |
| First Year Revenue | ١٢٠٬٠٠٠ JOD |
| Annual Growth | ١٠٪ |
| Cost of Goods Sold (COGS) | ٤٥٪ of Revenue |
| Operating Expenses | ٣٥٪ of Revenue |
| Tax/Zakat | ١٠٪ |
| Discount Rate (WACC) | ٨٪ |
| Study Horizon | ٥ Years |
Basis of Assumptions: Figures are based on average construction and operating costs for renewable energy and industrial cooling projects in Jordan, considering the proposed investment size and government trends to support the sector.
Project and Opportunity Description
Our project aims to develop and install innovative indirect evaporative cooling systems for large buildings and facilities in Jordan, integrating solar energy technologies to reduce reliance on the traditional electricity grid. These systems rely on the principle of natural cooling using evaporation to efficiently lower temperatures with low energy consumption, making them an ideal solution for Jordan's dry climate. The need for efficient and sustainable cooling solutions is increasing in Jordan, especially with rising temperatures and energy costs. The project offers an opportunity to provide environmentally friendly and economical solutions for businesses, factories, hospitals, and large commercial facilities, contributing to Jordan's goals in renewable energy and reducing carbon emissions. The business model relies on selling and installing integrated systems, in addition to periodic maintenance and operation contracts to ensure optimal performance.
Market and Demand Study
The renewable energy sector in Jordan is experiencing steady growth, with renewable sources contributing approximately 27% to the electricity mix by the end of 2024, with expectations to reach 40% by 2035. This growth is driven by significant investments in solar and wind energy projects and government efforts to enhance energy security and reduce reliance on imported fuels. Jordan faces challenges in local grid integration of renewable energy, highlighting the need for complementary storage and connection solutions. Demand for efficient and sustainable cooling systems is high in industrial and commercial sectors, where air conditioning systems consume up to 70% of total residential and commercial electricity in the region. The rising electricity prices in Jordan, which reached 0.120 JOD per kilowatt-hour for businesses in March 2026, encourage the transition towards renewable energy solutions and energy-efficient cooling technologies. Recent amendments to the renewable energy facility interconnection system, which include zero fees for energy storage, also support the expansion of such projects.
Market Sizing (TAM / SAM / SOM)
Market sizing was conducted based on an analysis of current and future needs of large facilities in Jordan for cooling systems, taking into account the investment volume in the renewable energy sector and government trends towards energy efficiency. The number of target facilities and their expected energy consumption were estimated, in addition to the average cost of installing and maintaining solar-powered evaporative cooling systems. The sizing relies on market studies and sector reports, focusing on customers seeking sustainable and cost-effective cooling solutions.
| Level | Annual Size | Description |
|---|---|---|
| TAM — Total Addressable Market | 25.0 million JOD | Total addressable demand |
| SAM — Serviceable Available Market | 7.5 million JOD | The portion reachable by your model |
| SOM — Serviceable Obtainable Market | 1.5 million JOD | Your realistic early share |
Basis of Sizing: The Total Addressable Market (TAM) was estimated based on the total expected annual spending on large cooling systems and renewable energy in Jordan. The Serviceable Available Market (SAM) represents the portion of TAM accessible through technology and operational capacity, while the Serviceable Obtainable Market (SOM) represents a realistic share achievable in the initial years.
Unit Economics
Measures the profitability of each sales unit/customer — the most accurate feasibility indicator:
| Unit Indicator | Value |
|---|---|
| Sales Unit | Integrated cooling project |
| Avg. Price/Revenue per Unit | ٤٠٬٠٠٠ JOD |
| Customer Acquisition Cost (CAC) | ٣٬٠٠٠ JOD |
| Customer Lifetime Value (LTV) | ١٥٠٬٠٠٠ JOD |
| LTV/CAC Ratio | ٥٠× (Healthy) |
| Contribution Margin | ٥٥٪ |
Competitive Analysis
The Jordanian market includes many traditional cooling companies and solar energy companies. Key competitors include industrial cooling companies that offer traditional cooling solutions, and solar energy system installation companies that primarily focus on electricity generation. Our sustainable advantage lies in offering an integrated solution that combines the efficiency of indirect evaporative cooling with the sustainability provided by solar energy, offering customers significant savings in operating costs and reducing their carbon footprint. Furthermore, focusing on indirect evaporative cooling reduces water consumption compared to direct evaporative cooling, which is vital in a water-scarce country like Jordan. Additionally, our specialized expertise in integrating both systems and providing specialized technical support and maintenance will give us a competitive edge.
Market Entry Plan and Pricing
The market entry plan includes targeting large institutions in the industrial, commercial, and tourism sectors, as well as government facilities seeking to reduce energy costs. Marketing will be conducted through: Participation in specialized energy and environment exhibitions and conferences. Building strong relationships with energy consultants and major contracting companies. Digital marketing via social media platforms and search engines. Presenting case studies demonstrating achieved savings and environmental benefits to potential customers. The pricing strategy will be competitive, offering comprehensive packages that include design, installation, and maintenance, as well as flexible financing options to suit customer needs.
Capacity and Operations
Planning to install 3-5 integrated cooling systems in the first year, with gradual increases in subsequent years to reach 10-12 systems annually by the fifth year, with a target occupancy rate of 70% of available operational capacity.
Daily operations of the project include managing installation and maintenance teams, and monitoring the performance of installed systems to ensure their efficiency. Standard operating procedures will be established for all project phases, from initial design to delivery and subsequent maintenance. Emphasis will be placed on quality in all aspects, from component selection to customer service, to ensure customer satisfaction and build a strong reputation for the project. This will require continuous training for technical and administrative staff.
The technical aspects of the project rely on the latest indirect evaporative cooling technologies and high-efficiency solar panels. Systems will be custom-designed to suit the needs of each facility, considering factors such as building size, heat load, and geographical location. Suppliers will be carefully selected to ensure component quality, with a focus on suppliers offering long-term warranties and technical support. The proposed project site includes an administrative office and a small workshop for initial assembly and maintenance, with potential for future expansion. Cooling of the solar panels themselves may increase electricity generation efficiency, a technology that can be studied for future application.
Projected Income Statement (5 Years)
| Item \ Year | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| Revenue | ١٢٠٬٠٠٠ JOD | ١٣٢٬٠٠٠ JOD | ١٤٥٬٢٠٠ JOD | ١٥٩٬٧٢٠ JOD | ١٧٥٬٦٩٢ JOD |
| Cost of Sales | (٥٤٬٠٠٠ JOD) | (٥٩٬٤٠٠ JOD) | (٦٥٬٣٤٠ JOD) | (٧١٬٨٧٤ JOD) | (٧٩٬٠٦١ JOD) |
| Gross Profit | ٦٦٬٠٠٠ JOD | ٧٢٬٦٠٠ JOD | ٧٩٬٨٦٠ JOD | ٨٧٬٨٤٦ JOD | ٩٦٬٦٣١ JOD |
| Operating Expenses | (٤٢٬٠٠٠ JOD) | (٤٦٬٢٠٠ JOD) | (٥٠٬٨٢٠ JOD) | (٥٥٬٩٠٢ JOD) | (٦١٬٤٩٢ JOD) |
| EBITDA | ٢٤٬٠٠٠ JOD | ٢٦٬٤٠٠ JOD | ٢٩٬٠٤٠ JOD | ٣١٬٩٤٤ JOD | ٣٥٬١٣٨ JOD |
| Tax | (٠ JOD) | (٠ JOD) | (٠ JOD) | (٠ JOD) | (٠ JOD) |
| Net Profit | -٤٦٬٠٠٠ JOD | -٤٣٬٦٠٠ JOD | -٤٠٬٩٦٠ JOD | -٣٨٬٠٥٦ JOD | -٣٤٬٨٦٢ JOD |
| Net Margin | -٣٨٪ | -٣٣٪ | -٢٨٪ | -٢٤٪ | -٢٠٪ |
Investment Cost Structure
| Item | Cost | Percentage |
|---|---|---|
| Cooling Equipment and Solar Panels | ١٤٠٬٠٠٠ JOD | ٤٠٪ |
| Installation and Labor Costs | ١٠٥٬٠٠٠ JOD | ٣٠٪ |
| Engineering Design and Licensing Costs | ٣٥٬٠٠٠ JOD | ١٠٪ |
| Marketing and Sales Costs | ٣٥٬٠٠٠ JOD | ١٠٪ |
| Administrative and Contingency Expenses | ٣٥٬٠٠٠ JOD | ١٠٪ |
Cash Flow and Break-even Point
| Year | Operating Cash Flow | Cumulative Cash Flow |
|---|---|---|
| Year 1 | ٢٤٬٠٠٠ JOD | -٣٢٦٬٠٠٠ JOD |
| Year 2 | ٢٦٬٤٠٠ JOD | -٢٩٩٬٦٠٠ JOD |
| Year 3 | ٢٩٬٠٤٠ JOD | -٢٧٠٬٥٦٠ JOD |
| Year 4 | ٣١٬٩٤٤ JOD | -٢٣٨٬٦١٦ JOD |
| Year 5 | ٣٥٬١٣٨ JOD | -٢٠٣٬٤٧٨ JOD |
Estimated break-even point at annual revenue ≈ ٢٠٣٬٦٣٦ JOD (~١٧٠٪ of first year revenue), with a contribution margin of ٥٥٪. Cumulative cash break-even after the study horizon.
Funding Structure
| Funding Source | Percentage | Amount |
|---|---|---|
| Equity | ٦٠٪ | ٢١٠٬٠٠٠ JOD |
| Debt Financing (8% interest) | ٤٠٪ | ١٤٠٬٠٠٠ JOD |
Sensitivity Analysis (Revenue × Operations)
The combined effect of changes in revenue and costs on Net Present Value:
| Revenue \ Operations | −10٪ | −5٪ | Base | +5٪ | +10٪ |
|---|---|---|---|---|---|
| −20٪ | -٢١١٬٦٣٦ JOD | -٢٣٤٬٦٩٧ JOD | -٢٥٧٬٧٥٧ JOD | -٢٨٠٬٨١٨ JOD | -٣٠٣٬٨٧٩ JOD |
| −10٪ | -١٩٤٬٣٤١ JOD | -٢٢٠٬٢٨٤ JOD | -٢٤٦٬٢٢٧ JOD | -٢٧٢٬١٧٠ JOD | -٢٩٨٬١١٤ JOD |
| Base | -١٧٧٬٠٤٥ JOD | -٢٠٥٬٨٧١ JOD | -٢٣٤٬٦٩٧ JOD | -٢٦٣٬٥٢٣ JOD | -٢٩٢٬٣٤٨ JOD |
| +10٪ | -١٥٩٬٧٥٠ JOD | -١٩١٬٤٥٨ JOD | -٢٢٣٬١٦٦ JOD | -٢٥٤٬٨٧٥ JOD | -٢٨٦٬٥٨٣ JOD |
| +20٪ | -١٤٢٬٤٥٤ JOD | -١٧٧٬٠٤٥ JOD | -٢١١٬٦٣٦ JOD | -٢٤٦٬٢٢٧ JOD | -٢٨٠٬٨١٨ JOD |
Scenario Analysis
| Scenario | Probability | NPV | Assessment |
|---|---|---|---|
| Pessimistic | ٢٥٪ | -٢٧٣٬٩٠٠ JOD | Unfeasible |
| Base | ٥٠٪ | -٢٣٤٬٦٩٧ JOD | Unfeasible |
| Optimistic | ٢٥٪ | -١٨٧٬٤٢٢ JOD | Unfeasible |
Expected Present Value (Weighted): -٢٣٢٬٦٧٩ JOD.
Risk Analysis and Management
| Risk | Probability | Impact | Mitigation |
|---|---|---|---|
| Changes in government policies or regulations related to renewable energy | Medium | High | Continuous monitoring of legislative changes and communication with government entities to ensure compliance and rapid adaptation. |
| Fluctuations in component prices (solar panels, cooling equipment) | Medium | Medium | Diversify suppliers, enter into long-term contracts with key suppliers, and monitor global markets. |
| Difficulty in acquiring customers initially due to the novelty of the technology | Medium | High | Intensify marketing efforts, offer competitive promotions, and build a track record of successful projects and case studies. |
| Technical challenges in integrating cooling systems and solar energy | Medium | Medium | Hire a highly experienced engineering team, invest in research and development, and comprehensive maintenance contracts with performance guarantees. |
| Shortage of specialized technical staff for installation and maintenance | Medium | Medium | Invest in training and qualification programs for local staff, and partner with specialized technical institutes. |
Organizational Structure and Team
The proposed organizational structure consists of a management team experienced in the renewable energy sector and project management, in addition to engineers specializing in cooling and solar energy systems, and skilled technicians in installation and maintenance. The CEO will be responsible for overall project oversight, while the Operations Manager will oversee technical and operational aspects. A dedicated sales and marketing team will be hired to communicate with potential customers.
Legal and Regulatory Aspects
The project requires obtaining necessary licenses from the Energy and Minerals Regulatory Commission in Jordan, in addition to complying with all laws and regulations related to the installation and operation of renewable energy and cooling systems. Jordan approved the Electricity Licensing System 2026 with new incentives to boost renewable energy investments, including zero fees for energy storage. Compliance with any special requirements for development zones that may offer exemptions from infrastructure licensing fees must be ensured.
Expansion and Sustainability Plan
The future expansion plan includes increasing the number of installation and maintenance teams, and expanding the scope of services to cover wider geographical areas within Jordan. The possibility of developing specialized cooling solutions for other sectors, such as the agricultural sector (cooling agricultural warehouses), can also be studied. Opportunities for partnership with major contracting companies or real estate developers to provide integrated solutions for new projects can also be explored. Sustainability will be achieved through continuous innovation in utilized technologies, improving system efficiency, and providing excellent customer service.
Environmental, Social, and Governance (ESG) Impact
The project has a significant positive environmental impact, contributing to reducing electricity consumption generated from fossil fuels, thereby lowering carbon emissions. The use of indirect evaporative cooling also reduces water consumption compared to traditional systems. Socially, the project contributes to creating new job opportunities and developing local skills in the renewable energy sector. In terms of governance, the project will adhere to the highest standards of transparency and accountability in all its operations.
Conclusions and Recommendations
The solar-powered indirect evaporative cooling system project has high economic and environmental feasibility in Jordan. The growing demand for sustainable cooling solutions, government support for the renewable energy sector, and the operational savings achieved by these systems are all factors supporting the project's success. With proper planning and effective execution, the project can achieve rewarding returns and significantly contribute to Jordan's sustainability goals.
Frequently Asked Questions
How much does it cost to install a solar-powered indirect evaporative cooling system in Jordan?
This depends on the size of the facility and cooling needs, but the proposed initial capital for the project is approximately 350,000 Jordanian Dinars, and the average price per unit is about 40,000 Jordanian Dinars.
What are the expected profits from a solar cooling systems project in Jordan?
First-year revenues are expected to be around 120,000 Jordanian Dinars, with a contribution margin of 55%. Profits depend on the number of projects implemented and the size of the systems.
What licenses are required for a renewable energy project in Jordan?
The project requires licenses from the Energy and Minerals Regulatory Commission. The Jordanian Cabinet approved the Electricity Licensing System 2026, which includes zero fees for energy storage, stimulating investment in this sector.
Is a solar cooling systems project profitable in Jordan?
Yes, considering the significant growth in the renewable energy sector, rising electricity prices for businesses, and government support for clean energy technologies, the project is considered profitable and highly economically feasible.
What is an appropriate discount rate (WACC) for the renewable energy sector in Jordan?
The proposed discount rate (WACC) is 8%, a figure that reflects the expected risks and returns in Jordan's renewable energy sector.
What are the electricity prices for large companies in Jordan?
Electricity prices for businesses in Jordan reached 0.120 Jordanian Dinars per kilowatt-hour in March 2026.
Sources and Disclaimer
- Reports of the Jordanian Energy and Minerals Regulatory Commission
- Reports of the International Renewable Energy Agency (IRENA)
- Central Bank of Jordan data on interest rates
- Specialized market studies in the energy and cooling sector in Jordan
- Economic news platforms specializing in renewable energy
Disclaimer: This is a guiding study that provides financial analysis according to approved sector standards; verify the figures locally according to your project's reality before any investment decision.
