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Theoretical Concept Design -
Renewable Energy Power Generation for
the Retail Consumer Market
Dorina Morcan, MBA
H Energy Power Systems
AN APPLE A DAY
HOLY GRAIL
MAGIC BULLET
We need something fast and easy to improve the energy situation.
Renewable Energy Market Timeline
$10 Billion Why Now?
• An entry level product is necessary to
create demand and move the supply to
the consumers
• A consumer product will initiate market
expansion
• The consumers must temporarily or
partially separate from the grid to create
demand for renewable power
generation.
Solar Trust of America
Bright Source
Solyndra
LSP Energy
Energy Conversion Devices
Abound Solar
SunPower
Beacon Power
Ecotality
A123 Solar
UniSolar
Azure Dynamics
Evergreen Solar
Ener1
Primary Market Barrier: Cost
Roof Full of PV Panels
• $80,000
Customer’s perspective:
“I want to be completely off
the grid and for my meter
to run backwards.”
Hybrid Cars
• $35,000
Customer’s perspective:
“I have to drive 6000
miles just to make up for
the extra cost. It’s not
worth it.”
Secondary Market Barrier : Oil
and Utility Companies, etc.
• Savings vs. Generation
• Model of energy generation must be
integrated at the consumer level to move
the market forward
– Independence from the grid, personal power
The Problem
H Energy
Power Systems
Consumers are generally locked-in to the existing electric
grid and local utility to serve their electric energy needs.
We’re coming to recognize the need for more renewable
energy:
Three reasons are:
1. Prohibitive costs
2. Local restrictions
3. Lack of professional installation.
Renewable power must become readily accessible to allow
full long term renewable power integration.
Key: Consumer Product
Alternative is…
H Energy
Power Systems
Based on marketing analysis, the following conclusions
can be drawn:
1. No turn key residential systems
2. No product or alternative product in retail stores
3. Majority of residential products can be extremely
complicated for most people.
4. The cost ranges wildly from $750 to $13,000.
5. There is producer interest and product uncertainty
.
• Power small non-essential appliances
• Safely remove one electrical circuit off the power grid. No power is
sent back to the grid.
• Lower power bill by reducing monthly consumption and lower
carbon dioxide emissions.
• Provide alternative to grid power from utilities
• Act as a backup power generator in a fixed installation
– Mobile use in case of emergency
– (Suggested use) Remove garage circuit off the grid to power
1. electric car charge; by 2020, there will be a total of 2.5 million electric cars, 3
million plug-in hybrids, and 6.5 million hybrids.
2. garage door during power outage
What should be the product
capabilities for under $1000?
H Energy
Power Systems
Still out of Reach for Most People
Requires professional installation
80% of the population has to
budget for the cost $3500
Design Concept: Consumer Market Unit
A hybrid generator, wind / solar, connected in series and attached by an
adjustable length cord to the power pack unit.
The power collected from the hybrid generator is stored in a battery inside the
power box. It is converted and distributed to four outlets designed to plug in
small non-essential appliances.
An additional output allows the user to safely take one power circuit in the
home off the grid. No power is transmitted back to the grid.
H Energy
Power Systems
Supplement Power Generation
• With just a 600 watt inverter one can power:
– Window air conditioner 450 watts
– Television 250 watts
– Computer and monitor 200 watts
– Two 75 watt lights 150 watts
– Emergency power for electric car charge
– Emergency power to open garage door during power outage
• Every hour the unit is not in use, it stores that hour worth
of electricity until needed.
H Energy
Power Systems
The Concept is Affordable:
The average consumer expects us to build it for them
Typical 24v Installation: Grid Connect System
•Requires professional installation thus very expensive
•Currently offered as a possible solution by many companies
•Limited commercial applications
Typical Battery Based System Wiring
Less complicated but still out of reach for most people.
Battery Based System
• Generates electricity from the wind and Sun.
• That electricity is stored in its battery until it is used.
• Inverter converts the 12 volt battery voltage into the 120
volts used in the home.
• There are several electrical circuits in each home.
Plugging the unit into a wall socket will power that entire
circuit.
• Largest potential for market development. Key is…
Does not require professional installation and thus
has the largest market potential and appeal
Role of Customer in Product Development
Conduct
Customer
Research
Design
Product
Build
Prototype
Beta Test
Prototype
Manufacture
Product
Rollout
Product
Customer
Sales
Marketing
Operations
Design
Finance
SWOT Analysis: 5kW Market is Open
High
Cost Solardyne
Endurance
Wind
ASG
Power
Bergey
Wind
$5,000
WindMax
Hybrid No
Northern
Arizona
Competition
Low
Cost
Southwest
Power
HyEnergy
 
300w 5000 kW
Generation Capacity (Watts)
Renewables Are Not Fossil Fuels
• A different business model must be adopted
• A retail model works because renewable power
generation products will be modular.
• Parts and Service will define how we make
money on renewable energy
Paradigm Shift
H    Energy
Power Systems
Stop quantifying progress in terms of savings and
conservation.
Create an energy generation culture. Savings are
theoretical. Power generation will have a more immediate
impact on the consumer and make the consumer more
interested in pursuing power generation.
As installations become larger, sell an installation package
service for each unit or larger installation.
Promote a modular concept of design.
Vertical Integration Map
• Utility companies would profit from this
secondary emerging market for consumer
products through vertical integration:
– Sale of modular components
– Service packages for large installations
– Inspection programs for both commercial and
residential installations
The Importance of a Consumer Product
• Without an entry level product, renewable energy will
never become commonplace nor gain widespread
acceptance.
• Alternative energy’s future depends on bringing to
market a renewable energy power generation system
that is affordable to the general population.
• The consumers must temporarily or partially separate
from the grid to create demand for renewable power
generation.
• Potential test markets include: California, New York,
and Florida, energy and space conscious states.
Any questions can be
answered at this time.

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HyEnergy Theoretical Concept for a Retail Consumer Model

  • 1. Theoretical Concept Design - Renewable Energy Power Generation for the Retail Consumer Market Dorina Morcan, MBA H Energy Power Systems
  • 2. AN APPLE A DAY HOLY GRAIL MAGIC BULLET We need something fast and easy to improve the energy situation.
  • 4. $10 Billion Why Now? • An entry level product is necessary to create demand and move the supply to the consumers • A consumer product will initiate market expansion • The consumers must temporarily or partially separate from the grid to create demand for renewable power generation. Solar Trust of America Bright Source Solyndra LSP Energy Energy Conversion Devices Abound Solar SunPower Beacon Power Ecotality A123 Solar UniSolar Azure Dynamics Evergreen Solar Ener1
  • 5. Primary Market Barrier: Cost Roof Full of PV Panels • $80,000 Customer’s perspective: “I want to be completely off the grid and for my meter to run backwards.” Hybrid Cars • $35,000 Customer’s perspective: “I have to drive 6000 miles just to make up for the extra cost. It’s not worth it.”
  • 6. Secondary Market Barrier : Oil and Utility Companies, etc. • Savings vs. Generation • Model of energy generation must be integrated at the consumer level to move the market forward – Independence from the grid, personal power
  • 7. The Problem H Energy Power Systems Consumers are generally locked-in to the existing electric grid and local utility to serve their electric energy needs. We’re coming to recognize the need for more renewable energy: Three reasons are: 1. Prohibitive costs 2. Local restrictions 3. Lack of professional installation. Renewable power must become readily accessible to allow full long term renewable power integration.
  • 9. Alternative is… H Energy Power Systems Based on marketing analysis, the following conclusions can be drawn: 1. No turn key residential systems 2. No product or alternative product in retail stores 3. Majority of residential products can be extremely complicated for most people. 4. The cost ranges wildly from $750 to $13,000. 5. There is producer interest and product uncertainty .
  • 10. • Power small non-essential appliances • Safely remove one electrical circuit off the power grid. No power is sent back to the grid. • Lower power bill by reducing monthly consumption and lower carbon dioxide emissions. • Provide alternative to grid power from utilities • Act as a backup power generator in a fixed installation – Mobile use in case of emergency – (Suggested use) Remove garage circuit off the grid to power 1. electric car charge; by 2020, there will be a total of 2.5 million electric cars, 3 million plug-in hybrids, and 6.5 million hybrids. 2. garage door during power outage What should be the product capabilities for under $1000? H Energy Power Systems
  • 11. Still out of Reach for Most People Requires professional installation 80% of the population has to budget for the cost $3500
  • 12. Design Concept: Consumer Market Unit A hybrid generator, wind / solar, connected in series and attached by an adjustable length cord to the power pack unit. The power collected from the hybrid generator is stored in a battery inside the power box. It is converted and distributed to four outlets designed to plug in small non-essential appliances. An additional output allows the user to safely take one power circuit in the home off the grid. No power is transmitted back to the grid. H Energy Power Systems
  • 13. Supplement Power Generation • With just a 600 watt inverter one can power: – Window air conditioner 450 watts – Television 250 watts – Computer and monitor 200 watts – Two 75 watt lights 150 watts – Emergency power for electric car charge – Emergency power to open garage door during power outage • Every hour the unit is not in use, it stores that hour worth of electricity until needed. H Energy Power Systems
  • 14. The Concept is Affordable: The average consumer expects us to build it for them
  • 15. Typical 24v Installation: Grid Connect System •Requires professional installation thus very expensive •Currently offered as a possible solution by many companies •Limited commercial applications
  • 16. Typical Battery Based System Wiring Less complicated but still out of reach for most people.
  • 17. Battery Based System • Generates electricity from the wind and Sun. • That electricity is stored in its battery until it is used. • Inverter converts the 12 volt battery voltage into the 120 volts used in the home. • There are several electrical circuits in each home. Plugging the unit into a wall socket will power that entire circuit. • Largest potential for market development. Key is… Does not require professional installation and thus has the largest market potential and appeal
  • 18. Role of Customer in Product Development Conduct Customer Research Design Product Build Prototype Beta Test Prototype Manufacture Product Rollout Product Customer Sales Marketing Operations Design Finance
  • 19. SWOT Analysis: 5kW Market is Open High Cost Solardyne Endurance Wind ASG Power Bergey Wind $5,000 WindMax Hybrid No Northern Arizona Competition Low Cost Southwest Power HyEnergy   300w 5000 kW Generation Capacity (Watts)
  • 20. Renewables Are Not Fossil Fuels • A different business model must be adopted • A retail model works because renewable power generation products will be modular. • Parts and Service will define how we make money on renewable energy
  • 21. Paradigm Shift H    Energy Power Systems Stop quantifying progress in terms of savings and conservation. Create an energy generation culture. Savings are theoretical. Power generation will have a more immediate impact on the consumer and make the consumer more interested in pursuing power generation. As installations become larger, sell an installation package service for each unit or larger installation. Promote a modular concept of design.
  • 22. Vertical Integration Map • Utility companies would profit from this secondary emerging market for consumer products through vertical integration: – Sale of modular components – Service packages for large installations – Inspection programs for both commercial and residential installations
  • 23. The Importance of a Consumer Product • Without an entry level product, renewable energy will never become commonplace nor gain widespread acceptance. • Alternative energy’s future depends on bringing to market a renewable energy power generation system that is affordable to the general population. • The consumers must temporarily or partially separate from the grid to create demand for renewable power generation. • Potential test markets include: California, New York, and Florida, energy and space conscious states.
  • 24. Any questions can be answered at this time.