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SolarAttic’s mission is to be the primary creator, designer, manufacturer and market leader for
all technology and products that make use of the newly emerging “Attic Solar Energy Vehicle.”
The Company began as Pool Heat Company in 1984, a Minnesota proprietorship owned
entirely by Edward G. Palmer, the Company’s current President and CEO. Pool Heat Company
changed its name to Attic Technology, Inc. and organized itself as a Minnesota corporation in
August 1986. In July 1993, the Articles of Incorporation were amended to change the name of the
Company to SolarAttic, Inc.
The Company began by developing a design concept for an attic air-to-water heat exchanger
which could heat swimming pools for as little as $11.00 per month in electricity consumption. In
May 1991, a U.S. patent named “ATTIC SOLAR ENERGY VEHICLE” was granted to Edward
G. Palmer. This is a solar technology patent which disclosed swimming pool heating, domestic
hot water heating and space heating systems — all using solar-generated, heat energy contained in
hot attic air. Mr. Palmer has assigned 100% of the patent rights to the Company.
In response to product publicity (several articles written about the Company) primarily
concerning the Company’s pool heating system, the Company has received product-related
inquiries from 1990 through the present. Direct mail follow-ups to these inquiries have resulted in
limited sales of the Company’s pool heating and space heating systems. At December 31, 1997,
the Company had sold a total of 167 pool heating systems to customers in 30 states.
The Company’s first patent disclosure cited as a prior art reference an attic based space heating
system patented by Ohio inventor David C. Smith. In 1992, the Company was able to acquire
100% of the rights to this U.S. Patent in exchange for stock in the Company. Subsequently, the
Company also acquired the entire remaining space heater inventory from its original West Virginia
manufacturer in exchange for stock in the Company. The acquisition of this second patent entitled
“COMPACT ATTIC MOUNTED SOLAR HEATING PACK ASSEMBLY” was considered
important from a strategic technology standpoint. The Company’s technology was then focused
on heating liquids with an air-to-liquid heat exchanger. The second patent added a proprietary air-
to-air heat transfer component to the Company’s technology base.
In March of 1994, the Company applied for a third U.S. Patent entitled “A SELF
SUFFICIENT APPARATUS AND METHOD FOR CONVEYING SOLAR HEAT ENERGY
FROM THE ATTIC.” This patent disclosure showed how to provide free solar hot water using a
combination of hot attic air and solar photovoltaic cells. In September 1995, a U.S. patent with the
aforementioned name was granted to Edward G. Palmer. Mr. Palmer has assigned 100% of the
patent rights to the Company. The Company successfully demonstrated a prototype of this hot
water heating technology at the Minnesota State Fair during 1994. However, due to limited capital
resources, the Company has not yet completed a domestic or commercial hot water heating
product. See “ RESEARCH AND DEVELOPMENT.”
Along the Company’s technology development path, it became obvious that there was more
solar heat energy available in the attic than what the swimming pool heater was extracting. The
Company’s pool heaters were working well according to customer empirical reports and
testimonials. Some customers, however, informed us that more heat was available at the ends of
their attic. The question then arose: “How can we collect all of the solar heat inside the attic?”
As a result of further investigation, a fourth U.S. Patent was applied for in September of 1995
for a new and innovative duct technology. The patent application is entitled: “AN AIR
DISTRIBUTOR OR COLLECTOR.” The Company’s founder, Edward G. Palmer and Professor
Ephraim M. Sparrow at the University of Minnesota are co-inventors.
In 1995, a technical paper was first published in the SOLAR 95 PROCEEDINGS describing
the Company’s new technology. The paper was entitled: “ENHANCED APPLICATIONS OF
ATTIC-COLLECTED SOLAR ENERGY.” Professor Sparrow, engineering student John A.
Sipple and the Company’s founder Edward G. Palmer, wrote the paper.
On May 5, 1998, U.S. Patent 5,746,653 was issued with the above title in the names of both
co-inventors. Both Mr. Palmer and Mr. Sparrow have assigned 100% of the patent rights to the
Company. During September 1997, the Company filed for international patent protection through
the United States Patent & Trademark Office (“USPTO”). By April of 1999, the Company had
also completed in-country patent applications in the following foreign countries: Israel, Canada,
New Zealand, Australia, United Kingdom, Italy, Spain, France, Germany and Switzerland. The
Company believes that these foreign patents will be of value at some point in the future.
The fourth patent is a unique duct technology that allows for the even collection or distribution
of air all along its entire length. To get this even collection or distribution of air (performance) out
of the duct, it is perforated with holes that provide an “air flow through area” that increases as you
progress down the length of the duct. The increased flow through area compensates for pressure
losses along the duct’s length thus causing the duct to collect air or distribute air evenly. The end
of the duct opposite the fan end is typically capped albeit it can be left open under certain
conditions. The duct can be any geometric shape or length. In the patent application, a circular
non-insulated flex duct is described in detail. The flex duct can then wind its way around modern
attic cavities which can be disjointed compared to older house structures with a rather straight attic
from gable to gable.
The ramifications of the Company’s new duct technology are very broad. Virtually any place
that a duct is used to collect or distribute air is a candidate for use of the Company’s new duct
technology. As applied to the attic (solar) heat transfer systems, the duct technology will allow for
an even more energy efficient solar heating system. Imagine, for example, the SolarAttic pool
heater which is basically a radiator concept inside the attic. Pool water is pumped through the
radiator coil while hot attic air is drawn across the coil. This is forced air convection technology.
Just like the radiator inside your automobile except instead of cooling it is heating the water. The
heat exchanger simply placed inside the attic is highly functional for its intended use. Pool owners
appear quite satisfied. However, more heat energy is available (found) inside the attic.
With the Company’s new duct technology, a section of duct perforated properly can be attached
to the heat exchanger and stretched throughout the attic. The net result is that a smaller heat
exchanger can be manufactured because of an increase in overall efficiency in heat collection. In
addition, more flexibility is provided from an installation standpoint. Instead of having to mount
the heat exchanger at the apex of the attic, it could then be placed in a more convenient location on
the attic’s floor with the duct itself extended up to and along the apex of large attics.
The same technology concept holds true for space heating and domestic hot water heating
products. With the addition of the Company’s new duct technology, both of these products will
also be more energy efficient. It translates into more proprietary products and less competition.
Pool heating, space heating and hot water heating are the main areas of attic heat transfer. The
same technology can be used for “process heating” applications in industrial settings. All of these
heat transfer products can be augmented with the duct technology. However, the duct technology
also offers product opportunities extending far beyond heat transfer inside the attic.
Take, for example, the issue of proper attic ventilation. The new duct, when coupled with a fan
and appropriate controls, now offers consumers a unique way of controlling attic ventilation from
the inside of the attic. Hence, a fourth product category has been created with the introduction of
the SolarAttic Ridge Ventilator, which offers to control both humidity and temperatures inside the
attic. This product was introduced at the 1997 Minnesota State Fair during August. It has been
met with enthusiasm from fair visitors. Several systems were immediately ordered at the fair’s
introductory price. See “PRODUCTS.”
A fifth product opportunity arose during the Company’s development stage that takes advantage
of the duct technology and other Company-owned patents. That is a modular system that
combines space heating, ventilation, the duct and hot water heating. A combination space and
ventilation system is now in the final prototype stages and is expected to be ready to market by the
second quarter of 2000. Such a product, in Minnesota, would work as follows: In the fall and
spring, the system will collect free attic (solar) heat and redistribute it back into the house to reduce
home heating costs. In the winter, the system will vent the attic thereby working to reduce or
eliminate ice dams caused by poor attic ventilation. In the summer, the system will vent the attic
thereby reducing summer air conditioning costs.
From a modular concept, the Company expects to have a hot water heating module sometime in
the future. When it is available, it can then be placed at the discharge air location. In the summer,
then, as the hot attic air is discharged to reduce air conditioning costs—the hot air could then be
used to heat domestic hot water before it is discharged outside. To create such a product requires
that all elements be in place at the onset since the duct is designed and cut to a specific pressure loss
and air flow (CFM) requirement. Therefore, it is not anticipated that a water-heating module could
be retrofitted but would rather have to be part of the initial order as an option. See “PRODUCTS.”
The Company’s first three patents are U.S. Patents only. However, the Company has
successfully made several international filings for the fourth patent’s duct technology. Therefore,
it is readily apparent that all of the systems built by the Company and sold overseas would have a
competitive edge when the duct is incorporated into the product’s design. Likewise, the Company
now has additional and important technology that will not be easily copied overseas in those areas
where overseas patent protection is granted. In some areas overseas, the Company may want to
seek out business partners. SolarAttic does not envision any direct overseas operations. Instead,
SolarAttic envisions overseas partners who could handle the relevant overseas markets.
During the first half of 1999, the Company advanced this modular concept further through the
design and introduction of a computerized electronic control that monitors both temperature and
humidity inside the attic. The new control is called the SAVC02 and is highly accurate to within
±1% Rh and ±1º F even to subzero temperatures. The control was designed to work across the
three product categories of space heating, ventilation and the combination space heating-ventilation
system (GB-Series). All products use the exact same computerized control. See “ PRODUCTS.”
One final historical perspective. All systems inside the attic consume relatively low amounts of
electricity for the high corresponding amount of heat energy transferred. As a result, the low
electrical energy consumption can easily be offset by the use of solar photovoltaic cells (PV cells).
As SolarAttic’s new technology has evolved, so has that of PV cells. Most noteworthy is the fact
that new PV cells have been developed to take the form of roof shingles. Such a development then
takes away the remaining number one sales objection to existing solar technology. The panels.
People want renewable solar energy technology; they just don’t want the solar roof panels. When
SolarAttic’s new inside-the-attic solar heating technology is coupled with new PV cells that look
like roof shingles—it will be a strong product differentiation to that of traditional solar panel
systems used in thermal heating applications (panels vs. no panels).
The technology exists today for SolarAttic to create and supply solar energy systems that will
provide free domestic hot water without solar hot water panels. SolarAttic can also provide free
attic ventilation. Both of these product categories are immediately adaptable to the use of PV cells
due to their low energy consumption. Attic ventilation could therefore be a function of sunlight.
Whenever the sun shines or there exists a relative amount of sunlight, the attic would vent
automatically with no utility power consumption. Just like small solar powered calculators. Solar
powered attic ventilation, in itself, is not a new idea. However, with the control over attic
ventilation offered by the Company’s new duct technology—there is a new category of ventilation!
This historical perspective shows that, while the Company has endured a prolonged
developmental stage, it has continually progressed and advanced its new energy technology. With
limited capital resources in Minnesota, time was the necessary substitute ingredient.
The development of the Company’s technology has taken much longer than otherwise would
have occurred with additional and substantial early capital. It has been unusual (and very difficult
from a capital standpoint) for a new solar technology to emerge from Minnesota. The state that is
often equated as Ice-Box, USA (home of International Falls). The end result, however, is that
what started out as a simple pool heating concept in 1984 has evolved into a broad and expansive
new solar energy and ventilation technology as it has progressed into 1999.
It should be noted that even though it has taken more time to develop this new technology in
Minnesota, in the long run, it could save SolarAttic a lot of marketing costs. For example, if we
had developed this technology in Florida, who would buy it in the northern states? Everything
solar works in Florida. Doesn’t it? Many times, the Company has heard the dialogue: “If it works
in Minnesota, it should work in our state.” That consumer thought is a critical long-run marketing
message. It’s a fact — SolarAttic’s technology works in Minnesota!
In April of 1997, the Company moved out of its founder’s garage manufacturing and basement
office area and into the new “Elk River Business Center” office complex along Highway 10 in Elk
River, Minnesota.
In April of 1999, the Company announced that it had entered its growth phase with the first
quarter revenues up 249% from the first quarter of 1998 ($44,497 vs. $17,843). This followed a
1998 sales increase of 78% from 1997, which was up 31.7% from its prior year.
The Company believes its strengths are its technology patents and experience in developing
systems that harness the heat energy contained in solar-generated, hot attic air. The Company has
the following patents:
the SolarAttic Domestic Hot Water Heater (under development).(See
“RESEARCH AND DEVELOPMENT”)
The Company filed a solar technology patent on September 7, 1989. Within the patent,
swimming pool heating, domestic hot water heating and space heating systems were disclosed
using the thermal energy contained in solar-generated, hot attic air. On May 14, 1991, U.S. Patent
5,014,770 was granted to Edward G. Palmer for the “ATTIC SOLAR ENERGY VEHICLE” (title
of the patent). The Company has been assigned 100% of the patent rights by Mr. Palmer.
1992.
In September 1992, the Company acquired all of the rights to U.S. Patent 4,502,476 which is
now U.S. reissue patent number Re. 32,607 in exchange for 204,000 shares of the Company’s
common stock valued at 30¢ per share. The patent is currently valid and owned 100% by the
Company.
U.S. Patent Re 32,607 is titled “COMPACT ATTIC MOUNTED SOLAR HEATING PACK
ASSEMBLY.” This patent describes what the Company markets as the SolarAttic Space Heater.
This heating system takes warm attic air and distributes it into living spaces that need heat. The
system is automatic, providing heat only when attic heat is available and when it is required in
living spaces.