Ryan LessardCoury Revan Shella Cadet

Supplying the Caribbeanwith solar energy

Monday

Homeowners

and

Businesses

5 -Interviews

Tuesday

Homeowners

Businesses

and

Installers

8 -Interviews

Wednesday

Homeowners

Businesses

Installers

And NGOs

14 -Interviews

Thursday

Homeowners

And NGOs

7-Interviews

Total Interviews: 34

Day One

Day One: Hypotheses / what did we learn?

The initial Idea:

Manufacture modular solar/wind hybrid energy systems for residential households and small commercial buildings in the US

What we’ve learned:

Installation costs and the permits required to install or modify existing solar/wind equipment are very high

A modular system that requires several rounds of installation fees is not feasible

We need to install the entire product in one go

Day Two

Day Two: Hypotheses / what did we learn?

The Idea:

Manufacture and install modular solar/wind energy systems in New Jersey (a state with enticing green energy subsidies)

What we’ve learned:

The subsidies are expiring in the near future!

Need an area where green energy works and there are high energy costs

The initial costs of the systems are too high for customers – they aren’t willing or able to commit that much capital for long term savings

Therefore, our sales model is not feasible. Leasing is a better option

Day Three

CARICOM has 15 member states and 5 associate states:

Antigua and Barbuda, the

Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St.

Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago

(CARICOM 2010).

Customer Segment

Day Three: Hypotheses / what did we learn?

The Idea:

Manufacture and install solar energy systems in the Caribbean

What we’ve learned:

Many countries in the Caribbean have oil subsidies, making them more hostile to green energy

We spoke to many non-governmental organizations focused on green energy

Selected three countries because they have small or no oil subsidies and will be easier to introduce green energy into the market.

Market Analysis

Cost Evaluation

Revenue Steam

Residential Homes in:

Barbados

Greneda

St. Lucia

Investors

Barbados

• Highest GDP of Caribbean countries

• Largest island (population)

• Second largest island (area)

• Large demand for electricity

Customer Segment

Characteristics of the market:

• Relatively high GDPs

• Extremely dependent on oil import (except Trinidad and Tobago)

• Extensive electric power coverage, up to 99% (everyone is on the grid)

• Some of the highest electricity tariffs on the globe

Market Size

Total Addressable Market:192,000 Residential homes -

Served Available Market: 65% Residences interested in reducing bills or in usinggreen energy = 125,000

Target Market: 6% of the SAM (assumption)

7,500 homes

Market Analysis

Market Analysis

The monthly Customer Charge is determined based on the customer’s average energy consumption in kWh

Also, fuel charge for each KWh is applied for the cost of fuel associated with the provision of this service. The fuel Clause Adjustment is calculated according to the Fuel Clause approved by the Fair Trading Commission and may vary from one month to another

Cost Analysis

Cost of Materials

Manufacturing Cost

Installation Cost

Sales Costs

$10,000 $3,000 $2000 $17,000

~$8k/year

Revenue Analysis

Drivers that support the Value Proposition

Economic Drivers

• Economic Optimization

• Leasing is a better choice

• Security of Supply

• Decrease dependency on fossil fuel

• Leading Industry

• Increase of market share and business opportunities

Environmental Drivers

• Reducing Emissions

• No direct or indirect emissions from renewable energy

• Reducing Climate Change

• Implementation of renewable energies help to prevent Climate Change

• Protect Natural Life

• No cut-backs of natural resources

Social Drivers

• Employment

• Direct and indirect employment will be generated

• Public Support

• People are asking for more cheaper energy cost

• Social Economic Cohesion

• Can help in areas that are areas economically challenged

Day Four

Day Four: Hypotheses / what did we learn?

The Idea:

Use NGO and government incentives to subsidize our business

What we’ve learned:

Many NGOs provide free education for employees of solar installation companies

We plan to take advantage of these programs to reduce our costs

Day Five

Day Five: Hypotheses / what did we learn?

The Idea:

Hypothesis: our main competition would be with other solar installers of similar size

What we’ve learned:

Power companies in Barbados are beginning their own initiatives to install solar panels on residential homes and then tie them into the grid

These are pilot programs. We plan to contact the utility companies to learn more and perhaps initiate a partnership.