$1.5 MM of capital to start manufacturing and distribution for year 1 and 2
Endorsements by environmental groups, city consortiums for renewable energy, public utilities, city council planning department
Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.
Cost-driven model to provide inexpensive, quality product
Manufacturing costs and customer acquisition costs.
May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained.
Asset sales and service calls
Leasing and PPA (Future)
Overview of the week Timeline Updated Financial Numbers Talked with Partners Talked with More Cities
Timeline: 0 – 6 month Product Design Pilot Location Government Grant / Loan Regulatory Barriers Exit Criteria: Have loans and develop MVP
Timeline: 6 – 12 month First Manufacture (1-10 units) Certification Testing the product Testing Wind Data Exit Criteria: Complete testing and Pilot installation
Timeline: 12 – 18 month Manufactures partners (e.g. inverter) Early Adopter Cities (3-6 cities) Review Pilot Experience Testing Results Exit Criteria: Pilot success and final design
Timeline: 1.5 – 2.5 year Installation - O&M partners Closing early adopter sales Certification approval Exit Criteria: Certification and first sale
Timeline: 2.5 – 4 year Multiple sales Costumer Care Start looking PPA and Leasing Exit Criteria: Breakeven
Financial Numbers Breakeven on year 4 Small scale business over the first 5 yrs Year 5 sale: 15-20 million Follow the sales trends in wind and PV
Partners Installers Less Overhead Revenue and increased number of products Quality/Liability $1000 Certification Credibility Advancement of green tech. Long turnover High cost – highly variable Government and Research Labs Credibility and testing facilities Want to promote tech Ownership and Public Knowledge Cost of proposals
New Cities (Update) Mariposa, Tx Eco-school Demo site for sustainability Want to pilot Sundance, Ut Ski resort is interested Large energy budget Green minded Rapid City, SD Engineering concerns Worried about power budget Large up front cost is problem