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Executive Summary Company Description: SolarAttic is first to market with technology that makes use of free solar energy in the form of hot attic air. Energy saving appliances placed inside the attic absorb and transfer this free heat energy placing it into productive use. The roof functions like a massive solar collector. The attic functions as a convenient storage container. Proven heat exchange technology is coupled with patented and proprietary temperature, humidity and duct technology. The result is low cost, environmentally friendly heating systems for heating homes, water and pools and a method of controlling attic ventilation. SolarAttic products have residential and commercial applications, are competitive and provide a measurable and marketable payback. The company has successfully field-tested products in over 40 states. SolarAttic forecasts revenues will grow to over $200 Million annually from a market estimated at over $15 Billion. The company is a non-reporting C corporation with 242 investors and was founded in 1986 by Ed Palmer. The company’s value proposition for consumers and business is “guaranteed energy savings” and “solar without panels”. The company will create profits as a manufacturer selling directly to dealers where installation is generally required such as in the case of pool heaters and through retailers like Home Depot where do-it-yourself off-the-shelf products can flourish as in the case of space heating, DHW [hot water] or ventilation products. Combination products are also manufacturable. Products: SolarAttic offers technology and products for: Ventilation of the attic; space heating; water heating; and, pool heating. A year round product application for Northern states could provide controlled attic ventilation during the winter and summer and free solar space heating during the spring and fall. Such a product could save consumers energy up to 9 months of the year and protect their house structure 3 months [winter]. Space heating has demonstrated up to 30% reductions in annual space heating costs in Ohio and West Virginia. SolarAttic can heat hot water or swimming pools in Minnesota for 5-7 months/year and up to 10 months in other states. SolarAttic's space heating, water heating and ventilation applications are more expansive in warmer climates. Our electronic and duct technologies eliminate the problems of roof ice-dams and attic mold growth in northern climates. SolarAttic products offer eight distinct energy-saving benefits: 1. Saving an average up to 25% of home air conditioning costs nationwide. Competitive Position: Definable payback periods exist for all products and the cost of these new alternative energy systems are offset by actual fossil fuel savings. Controlled attic ventilation provides a systems approach that eliminates structural damage caused by ice dams and mold growth. It's a solution to contaminated structures that require controlled ventilation. SolarAttic technology now totally controls the heat energy inside of attics and places that solar heat energy into productive use in a way that saves consumers and business a lot of money. The company was issued patents for its technology in the USA and three foreign countries. OM Solar at www.omsolar.net is a related technology and a validation of the company's energy savings approach. While the use of attic heat energy is similar, OM Solar requires that a new home be built, while SolarAttic's modular approach can retrofit any home or business. However, the primary competition is still from other technology choices such as solar roof panels and fossil fuel product offerings. A focused differentiation marketing strategy will emphasize the aesthetic and operating cost disadvantages in those competitive products. I.E. It can cost $500 or more per month to heat a pool with natural gas. SolarAttic can heat a pool for only $10-15 a month without the aesthetic issues involved with traditional solar panels. Consumers want alternative energy and free solar heat, but they do not want roof mounted solar panels. In order to penetrate distribution and markets, SolarAttic needs to increase its visibility to consumers, distributors & dealers. Nationwide awareness and distribution are two primary goals in our Business Plan. Management Team and Staff: Mr. Palmer has an engineering background that began in the US Navy working on the Tartar guided missile system for 7 years. It continued in the computer industry where he spent 7 years in quality engineering. Before founding SolarAttic, Mr. Palmer held the position of Director of Quality in a $70 Million high volume computer head manufacturing operation. Mr. Palmer also has 40 years of entrepreneurial experience in various ventures and was the President of The Minnesota Entrepreneurs (www.mn-entrepreneurs.org) from Jan 2001 through Dec 2002. He started off shining shoes outside of several bars in South Minneapolis at the age of seven. Mr. Palmer has developed a relationship with several heat transfer specialists and world-class heat transfer experts. This includes Professor Ephraim Sparrow of the U of M, who is a co-inventor of the company's new duct technology. Following 9/11, SolarAttic was forced to retreat and all remaining members of the management team were let go in the first quarter of 2002. Retreating back to the garage minimized negative cash flow and was Mr. Palmer's continuation strategy for advancing the company. It is also evidence of his continued commitment to this energy technology. Mr. Palmer has also developed a relationship with a heat pump manufacturer who now produces the SolarAttic pool heater. SolarAttic had previously assembled a good management team. When funding is secured, Mr. Palmer will hire and assemble a new management team as needed. Markets and Market Development: SolarAttic estimates the pool heating market to be $400 Million in size. Manufacturing USA (92') states U.S. manufacturers of hot water heaters ship $393 Million worth of electric hot water heaters annually. According to Manufacturing U.S.A. (1996), U.S. manufacturers of "Blowers and Fans" shipped $3,514 million worth of product during 1996. Total market size in the USA today for SolarAttic's technology and products is now estimated at $4-7 Billion. Worldwide markets are estimated at $11-15 Billion. Medical markets also exist for SolarAttic's new duct technology. Forecasts for electrical energy needs in third world countries indicate that demands can only be fulfilled by energy efficient and renewable energy technologies. Major macro market forces are now in play and include: a) shortages of electricity capacity; Finally, the U.S. consumes 99 quadrillion btus of energy each year and U.S. Government Energy Department data predicts we will need 175 in 20 years, an additional 76 quadrillion btus. The United States government expects that 48 of this 76, or 63% of this energy shortfall, will have to be met by energy efficiency technologies like those of SolarAttic. The world’s energy crisis is as real as the energy solutions that are now available from energy entrepreneurs like Palmer who only need their proven technologies funded. Customers: Current customers are primarily consumers who have located SolarAttic on the Internet. To fuel expansion without further investment, SolarAttic is proceeding with a factory to dealer to consumer sales model on its pool heater. It is achieving success and in the first five months of 2008 sales were up 600%. SolarAttic was forecasting 2008 revenues would reach $750k until the brakes hit the economy. The company finished 2008 up over 300% from 2007. In the case of where a local installing dealer is not available, SolarAttic offers the pool heater at a discount [wholesale prices] to the consumer to seed the local area with an installation. With substantive funding, SolarAttic can expand its sales model and prepare other products for the market. The company can also proceed with volume production to cut its manufacturing costs. A more traditional distribution model could augment the rapid expansion and adoption of SolarAttic products in the United States and worldwide. However, inventory to fill existing supply chains requires substantial capital investments. Sales & Gross Profit See Acrobat PDF version of Executive Summary for details Business Needs: $5 million in expansion capital funding will fully execute SolarAttic's detailed business plan. SolarAttic can also use strategic partners who can help bring this renewable energy technology to market and rapidly expand the acceptance of SolarAttic’s energy saving products. This might include offshore manufacturing facilities for the mass production of water coils and simple duct systems as well as electronic controls for humidity and temperature management inside of attics. Preliminary designs are already in place for all energy-saving product SolarAttic has developed. Utility Free Energy Future: When powered with photovoltaic cells, SolarAttic products can provide utility free space heating, free domestic hot water heating, free pool heating and free attic ventilation. Full implementation of SolarAttic technology can also saving more barrels of oil than is estimated to be produced annually in Alaska's ANWAR fields. See oil barrel savings calculations. Contact Information: Ed Palmer, CEO Use our online feedback form to contact Ed. July 30, 2009 |
