Supplying the Caribbean with solar
energy Monday Tuesday Wednesday ThursdayHomeowners Homeowners Homeowners Homeowners and Businesses Businesses And NGOs Businesses and Installers Installers And NGOs 5 -Interviews 8 -Interviews 14 -Interviews 7-Interviews Total Interviews: 34Coury Revan Shella Cadet Ryan Lessard
Day One: Hypotheses / what
did we learn? The initial Idea: Manufacture modular solar/wind hybrid energy systems for residential households and small commercial buildings in the US What we’ve learned: Installation costs and the permits required to install or modify existing solar/wind equipment are very high A modular system that requires several rounds of installation fees is not feasible We need to install the entire product in one go
Day Two: Hypotheses / what
did we learn? The Idea: Manufacture and install modular solar/wind energy systems in New Jersey (a state with enticing green energy subsidies) What we’ve learned: The subsidies are expiring in the near future! Need an area where green energy works and there are high energy costs The initial costs of the systems are too high for customers – they aren’t willing or able to commit that much capital for long term savings Therefore, our sales model is not feasible. Leasing is a better option
Customer Segment CARICOM has 15
member states and 5 associate states: Antigua and Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago (CARICOM 2010).
Day Three: Hypotheses / what
did we learn? The Idea: Manufacture and install solar energy systems in the Caribbean What we’ve learned: Many countries in the Caribbean have oil subsidies, making them more hostile to green energy We spoke to many non-governmental organizations focused on green energy Selected three countries because they have small or no oil subsidies and will be easier to introduce green energy into the market.
Customer Segment Residential Homes in:
Market Cost Revenue Barbados Investors Analysis Evaluation Steam Greneda St. Lucia Barbados • Highest GDP of Caribbean countries • Largest island (population) • Second largest island (area) • Large demand for electricity
Market Analysis Characteristics of the
market: • Relatively high GDPs • Extremely dependent on oil import (except Trinidad and Tobago) • Extensive electric power coverage, up to 99% (everyone is on the grid) • Some of the highest electricity tariffs on the globe Served Available Market: Market Size 65% Residences interested in reducing bills or in using green energy = 125,000 Total Addressable Market: 192,000 Residential homes - 7,500 homes Target Market: 6% of the SAM (assumption)
Cost Analysis The monthly Customer
Charge is determined based on the customer’s average energy consumption in kWh Also, fuel charge for each KWh is applied for the cost of fuel associated with the provision of this service. The fuel Clause Adjustment is calculated according to the Fuel Clause approved by the Fair Trading Commission and may vary from one month to another
Drivers that support the Value
Proposition Economic Drivers Environmental Drivers Social Drivers• Economic Optimization • Reducing Emissions • Employment • Leasing is a better • No direct or • Direct and indirect choice indirect emissions employment will from renewable be generated energy• Security of Supply • Reducing Climate • Public Support Change • People are asking • Decrease dependency on • Implementation of for more cheaper fossil fuel renewable energy cost energies help to prevent Climate Change• Leading Industry • Social Economic • Protect Natural Life • Increase of market Cohesion • No cut-backs of share and • Can help in areas that natural resources business are areas economically opportunities challenged
Day Four: Hypotheses / what
did we learn? The Idea: Use NGO and government incentives to subsidize our business What we’ve learned: Many NGOs provide free education for employees of solar installation companies We plan to take advantage of these programs to reduce our costs
Day Five: Hypotheses / what
did we learn? The Idea: Hypothesis: our main competition would be with other solar installers of similar size What we’ve learned: Power companies in Barbados are beginning their own initiatives to install solar panels on residential homes and then tie them into the grid These are pilot programs. We plan to contact the utility companies to learn more and perhaps initiate a partnership.