Florida’s Renewable Energy Future Seen from One of the Gulf Coast’s Pioneering Companies Solar Direct Presentation to the Gulf Coast Press and Media Clean Renewable Energy as the New National Theme Song Definition of Renewable Energy Renewable energy is obtained from sources that are essentially inexhaustible including wood, waste, geothermal, wind, photovoltaic, and solar thermal energy. Source: Natural Resource Defense Council The National Energy Crisis Bush Can't Quickly Cap Gas Hikes CBS News April 23, 2005 When the Power Goes Out, the Sun Still Rises New York Times August 12, 2004 Natural gas prices may leap 71%, oil, electricity less USA Today September 9, 2005 In an Oil Squeeze, Attention to the Alternatives New York Times September 22, 2005 Gas utilities to pass higher natural gas costs to customers Utilities and Transportation Commission September 2005 State of Renewable Energy Market 162 $24 Trillion $1 Billion 74% 22 Number of countries signing Kyoto Protocol Assets of the Carbon Disclosure Project members who seek SEC to require public companies to disclose CO2 emissions Commitment by Progress Energy Florida to clean up air pollution (May, 2005) Percent of U.S. adults believing environmental standards cannot be too high (Harris Interactive, Oct 2005) Number of states with a Renewable Portfolio Standard (RPS) Renewable Portfolio Standards Recent Highlights from the Solar Market Strong Growth of Solar Photovoltaic Market 200,000 homes in the U.S. use some type of photovoltaic solar technology-and the market is expanding at a healthy 15% annually. New Federal Energy Tax Credits Creates a new 30% tax credit for residential solar installations for two years, capped at $2000 per system per year. Applies to all property placed in service after December 31, 2005 and before January 1, 2008. Solar Green Tags or Tradable Renewable Energy Credits (TRECs) provide a new form of currency… Why Solar is Selling… Example Long Island, New York Purchase $42,900 (22,400) (3,750) (2,000) $14,710 Cost of System Long Island Power Authority Rebate NY State Tax Credit for Solar Federal Tax Credit for solar Net Cost of System to Purchaser. Florida Energy Initiatives: Beginning to Take Things Seriously Florida Green Building Ordinances Sarasota County Miami-Dade County Orange County Governor Bush’s Executive Order 05-241 (Nov 10, 2005) Concerns Florida is ranked 3rd in total energy consumption and 5th in energy per capita. 980 new residents being added per day Dependency on natural gas and >90% oil imports from other states. Continuing energy supply disruptions due to hurricanes. Solar Direct Targeting the Emerging Renewable Energy Market Solar Direct’s Market: The Green Mainstream Mainstream Differentiated LOHAS •Protecting the Environment (74%) •Social issues •Brand image •Personal health •Values alignment •Choice of environmentally friendly products •Sustainable Product interest •Willingness to pay •Teach others •Planetary health •Sustainable Product usage A $27 Bn Market - 33 M consumers today LOHAS = Lifestyles of Health and Sustainability Source: Natural Marketing Institute, May 2004 Who We Are Fastest-Growing Energy Product SuperMall on the Web Catering to emerging Green Mainstream of energy-efficient, planet-friendly home leisure products. One of the largest Online Marketers and Distributors of Solar Pool Heating products and accessories. Extensive Solar Technical Expertise for servicing consumer needs. World-Class Web Marketing Experience Established secure E-Commerce infrastructure State-of-the-Art Search Engine Marketing expertise Solar Direct’s Market Growth 30,000 customers today 2000+ unique web visitors per day Over 350 product offerings High End Products appealing to Mainstream Green: ASP of $2500 Grew 160% in 2004 to $2.3 Million annual revenue Stellar Sales Growth Annual Revenue $5,000,000 $5,000,000.00 $4,000,000.00 $2,800,000 $2,300,000 $3,000,000.00 $2,000,000.00 $1,000,000.00 $1,400,000 $1,200,000 $975,000 $950,000 $750,000 $1999 2000 2001 2002 2003 2004 2005E 2006E Our Company … Sheila Gulden Operations Jude Gomez Graphics/Marketing Pilar Komishane Sales Doug Hagg Sales Manager Frank Heddings Service Our Company Daniel Sanchez Order Processing Cindy Lemery Executive Administrator Ben Bishop Shipping Executive Management Dale Gulden, CEO & Marketing Director Kirk Maust, COO & Engineering Director US Nigerian Embassy Abuja, Federal Republic of Nigeria, Africa Solar Direct designed and supplied the solar water heating system for the 5-story, 90,000 SF Chancery Building within the compound. Electricity is a precious commodity in most West African countries due to aging equipment in disrepair. Solar water heating decreased the load and required size of the compound’s independent power plant. Pensacourt Health Club Pensacola, Florida Solar Direct installed a Vortex Solar Pool Heating system for the facility’s 25,000 gallon pool. Solar pool heating allowed the health club to retain swim-oriented members over additional months, as solar extends the useable pool season. Switching from gas and electric to solar pool heating reduced monthly energy expenses to improve club operation profitability. Flagship Products Today Utilizes FREE Energy • Eco-friendly technology • Zero operating costs • Generates heat worldwide Maintains 80-85F Pool 500-600% Efficient! • Heat extracted from air • Very low operating cost • Works well when solar heating is not feasible Maintains 80-90F Pool Solar Hot Water Systems • Active and Passive Units • Outdoor Solar Showers • Applications: a complete line of do-it-yourself kits; all specifications/budgets Reduce Energy Costs E-Commerce: Key Success Factor How We’ve Contributed to the Environment Over the company’s history, solar-based product shipments have resulted in cumulative KWh savings of 1.2 Billion KW Hrs equivalent to 487,000 tons of CO2 savings or removing 487,000 passenger vehicles off the road for one year. New Product Announcement: Current Solar PV Product Short-comings High upfront costs for “solarizing” a home. ($25K- $50K+) Consumer Education. Homeowners don’t know what to ask for – complex system components and sizing/site requirements. Most systems can’t be upgraded and scaled up. Products don’t address need for a Hurricane Storm – Power Outage Solution New Product Announcement: Solar Freedom ™ Starter Kit Ideal Solution Provides: Low-cost entry point Meets an immediate need Power outage solution Reduction of monthly utility bills “Solar in a Box” – all components. “Consumer Friendly” packaging Solar Freedom Starter Kit Components 3 Sharp PV modules Outback utility-grid inverter Concorde Batteries Fully Expandable System to 3000 W Initial Kit Cost: $11,690 Solar Direct’s Solar Freedom Starter Kit Basic solar package to run home appliances in “critical use mode” during a power outage. Primary usage appliance Avg. Watts Usage 1 (Hrs/day) Usage 2 (Hrs/Day) Standard Fridge 500 24 Hrs ----- Energy Efficient Fridge (Sun Frost) 150 ---- 24 Hrs 25 Inch Color TV 150 45 Mins 7 Hrs 1 Lamp 60 1 Hr 10 Hrs Clock Radio 1 10 Hrs 10 Hrs Small Microwave 600 15 Mins 15 Mins Solar Freedom 3000 W System For Florida, Solar Freedom 3000 supplies 20 -30% of a home’s total electricity needs. For a 3000 SF home with $1000/month electrical bill, the homeowner would expect to pay $12,000 per year in electricity (no inflation) or $120,000 over 10 years. The systems allows a $24,000- $36,000 Electricity bill Savings (conservative as assumes no electricity price increases) over a ten-year period --- as well as ensures power availability through hurricane season. Solar Direct E-Buyer Rewards Program Example: Customer purchases a Solar Freedom package (2006), plus a Solar water heater. Solar Freedom Starter Kit: $12,500 (w. sales tax) ProgressivTube Solar Water Heater 7,100 (w. sales tax) SUB-TOTAL COST $19,600 Florida Sales Tax Exemption on solar - $1,372 2006 Federal Energy credits -$4,000 E-Buyer Reward -$2,500 ------------------------------------------------------------------------NET CUSTOMER COST $11,728 SAVINGS 40% Who Needs these Kits? Home-owners concerned about future energy price hikes and volatility (inflation buster) Home-owners of large-scale homes with high utility bills ($300/month plus) Homes in storm-prone, hurricane regions Florida and its Keys Fixed income, e.g. Retirees Plans for Solar Freedom Next Generation Market Problem: Solar is perceived as “ugly”. Market Solution: Aesthetic consumer choices to enhance a home’s architecture. Kyocera Solar PV Roof Tile SunSlates ® Uni-Solar’s Laminate Future Directions Expand Range of Leisure products for EnergyConscious Consumers. Become a Trusted Brand for Quality Renewable Energy Products Like Whole Foods is for Organic Food products. Become a public company (2007-2008) Questions?
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