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

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
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

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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

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Sarasota County
Miami-Dade County
Orange County
Governor Bush’s Executive Order 05-241 (Nov 10, 2005)

Concerns


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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

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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

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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



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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
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Power outage solution
Reduction of monthly utility bills
“Solar in a Box” – all components.
“Consumer Friendly” packaging
Solar Freedom
Starter Kit Components
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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?

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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

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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

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
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?