D.C. VeritasWeek 8: Partners

Business Model Canvas

• Retrofit wind turbine for street and highway lamps.

• Use competitive, local, renewable energy, strong green symbol

• Diversify energy portfolio,

• Fast payback than alternatives.

• Cities• Utilities• County –

State Level

• Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.

• 5 year maintenance and warranty

• After 5 years, service charge• Utility to manage after

warranty expiration• Extended warranty option

• Asset sales and service calls• Leasing and PPA? (under review)

• Cheap manufacturing process - Intellectual property

• $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

• Build relationship with city engineers and council members

• Understand customer, influencers, motivations, problems, competitors

• Form partnerships for maximum reach

• Submit bids for city RFPs

• Environmental, bird, wildlife groups (regulations, publicity)

• City councils (new regulations, permits).

• Light manufacturers, installers to package product/services

• Electricians, contractors, light maintenance for additional workforce

• 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.

Updated Business Plan Canvas

• Retrofit wind turbine for street and highway lamps.

• Use competitive, local, renewable energy, strong green symbol

• Diversify energy portfolio,

• Fast payback than alternatives.

• Cities• Utilities• County –

State Level

• Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.

• 5 year maintenance and warranty

• After 5 years, service charge• Utility to manage after

warranty expiration• Extended warranty option

• Asset sales and service calls• Leasing and PPA (Future)

• Cheap manufacturing process - Intellectual property

• $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

• Build relationship with city engineers and council members

• Understand customer, influencers, motivations, problems, competitors

• Form partnerships for maximum reach

• Submit bids for city RFPs

• Environmental, bird, wildlife groups

• City councils (new regulations, permits).

• Light manufacturers,

• Installers/maintainers

• Research Labs• Turbine Certifiers

• 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.

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

QUESTIONS ?

Appendix #1