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 PowerEcotality 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

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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 costs2. Local restrictions3. Lack of professional installation.

 Renewable power must become readily accessible to allow full long term renewable power integration.  

Key: Consumer Product

Alternative is…

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Based on marketing analysis, the following conclusions can be drawn:

1. No turn key residential systems2. No product or alternative product in retail stores3. 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 power1. 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?

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Still out of Reach for Most People

Requires professional installation80% 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.

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Supplement Power Generation

• With just a 600 watt inverter one can power:

– Window air conditioner 450 watts– Television250 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.

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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 WiringLess 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

HighCost   Solardyne      

Endurance Wind

               

ASG Power    

Bergey Wind    

$5,000           

 WindMax Hybrid

 No

 

 Northern Arizona  

Competition  

LowCost

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

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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.