Florida

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Floridas Renewable Energy FutureSeen from One
of the Gulf Coasts Pioneering CompaniesSolar
Direct Presentation to the Gulf Coast Press
and Media
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Clean Renewable Energyas the New National Theme
Song
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Definition of Renewable Energy

• Renewable energy is obtained from sources that
  are essentially inexhaustible including wood,
  waste, geothermal, wind, photovoltaic, and solar
  thermal energy.
• Source Natural Resource Defense Council

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The National Energy Crisis
Bush Can't Quickly Cap Gas Hikes CBS News April
23, 2005
When the Power Goes Out, the Sun Still Rises New
York Times August 12, 2004
Natural gas prices may leap 71, oil, electricity
less USA Today September 9, 2005
In an Oil Squeeze, Attention to the
Alternatives New York Times September 22, 2005
Gas utilities to pass higher natural gas costs to
customers Utilities and Transportation
Commission September 2005
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State of Renewable Energy Market

• 162
• 24 Trillion
• 1 Billion
• 74
• 22

• Number of countries signing Kyoto Protocol
• Assets of the Carbon Disclosure Project members
  who seek SEC to require public companies to
  disclose CO2 emissions
• Commitment by Progress Energy Florida to clean up
  air pollution (May, 2005)
• Percent of U.S. adults believing environmental
  standards cannot be too high (Harris Interactive,
  Oct 2005)
• Number of states with a Renewable Portfolio
  Standard (RPS)

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Renewable Portfolio Standards
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Recent Highlights from the Solar Market

• Strong Growth of Solar Photovoltaic Market
• 200,000 homes in the U.S. use some type of
  photovoltaic solar technology-and the market is
  expanding at a healthy 15 annually.
• New Federal Energy Tax Credits
• Creates a new 30 tax credit for residential
  solar installations for two years, capped at
  2000 per system per year.
• Applies to all property placed in service after
  December 31, 2005 and before January 1, 2008.
• Solar Green Tags or Tradable Renewable Energy
  Credits (TRECs) provide a new form of currency

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Why Solar is Selling

• Example Long Island, New York Purchase
• 42,900 Cost of System
• (22,400) Long Island Power Authority Rebate
• (3,750) NY State Tax Credit for Solar
• (2,000) Federal Tax Credit for solar
• 14,710 Net Cost of System to Purchaser.

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Florida Energy InitiativesBeginning to Take
Things Seriously

• Florida Green Building Ordinances
• Sarasota County
• Miami-Dade County
• Orange County
• Governor Bushs Executive Order 05-241 (Nov 10,
  2005)
• Concerns
• Florida is ranked 3rd in total energy
  consumption and 5th in energy per capita.
• 980 new residents being added per day
• Dependency on natural gas and gt90 oil imports
  from other states.
• Continuing energy supply disruptions due to
  hurricanes.

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Solar Direct

• Targeting the
• Emerging Renewable Energy Market

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Solar Directs Market The Green
Mainstream
Mainstream
Differentiated
LOHAS

• Protecting the
• Environment
• (74)
• Social issues
• Brand image
• Personal health

• Values alignment
• Choice of
• environmentally
• friendly products
• Sustainable
• Product interest

• Willingness to pay
• Teach others
• Planetary health
• Sustainable
• Product usage

A 27 Bn Market - 33 M consumers today

LOHAS Lifestyles of Health and
Sustainability Source Natural Marketing
Institute, May 2004
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Who We Are

• Fastest-Growing Energy Product SuperMall on the
  Web
• Catering to emerging Green Mainstream of
  energy-efficient, planet-friendly home leisure
  products.
• One of the largest Online Marketers and
  Distributors of Solar Pool Heating products and
  accessories.
• Extensive Solar Technical Expertise for servicing
  consumer needs.
• World-Class Web Marketing Experience
• Established secure E-Commerce infrastructure
• State-of-the-Art Search Engine Marketing
  expertise

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Solar Directs Market Growth

• 30,000 customers today
• 2000 unique web visitors per day
• Over 350 product offerings
• High End Products appealing to Mainstream Green
  ASP of 2500
• Grew 160 in 2004 to 2.3 Million annual revenue

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Stellar Sales Growth
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Our Company

Sheila Gulden Operations
Pilar Komishane Sales
Jude Gomez Graphics/Marketing
Frank Heddings Service
Doug Hagg Sales Manager
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Our Company
Cindy Lemery Executive Administrator
Daniel Sanchez Order Processing
Ben Bishop Shipping
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Executive Management
Dale Gulden, CEO Marketing Director
Kirk Maust, COO Engineering Director
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US Nigerian Embassy Abuja, Federal Republic of
Nigeria, Africa

• Solar Direct designed and supplied the solar
  water heating system for the 5-story, 90,000 SF
  Chancery Building within the compound.
• Electricity is a precious commodity in most West
  African countries due to aging equipment in
  disrepair.
• Solar water heating decreased the load and
  required size of the compounds independent power
  plant.

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Pensacourt Health ClubPensacola, Florida

• Solar Direct installed a Vortex Solar Pool
  Heating system for the facilitys 25,000 gallon
  pool.
• Solar pool heating allowed the health club to
  retain swim-oriented members over additional
  months, as solar extends the useable pool season.
• Switching from gas and electric to solar pool
  heating reduced monthly energy expenses to
  improve club operation profitability.

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Flagship Products Today

 
Utilizes FREE Energy  Eco-friendly
technology  Zero operating costs  Generates
heat worldwide  Maintains 80-85F Pool
 Solar Hot Water Systems  Active and
Passive Units  Outdoor Solar Showers 
 Applications a complete   line of
do-it-yourself kits  all specifications/budgets
    Reduce Energy Costs
500-600 Efficient!  Heat extracted from
air  Very low operating cost  Works well when
solar  heating is not feasible    Maintains
80-90F Pool
 
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E-Commerce Key Success Factor
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How Weve Contributed to the Environment

• Over the companys history, solar-based product
  shipments have resulted in cumulative KWh savings
  of
• 1.2 Billion KW Hrs equivalent to 487,000
  tons of CO2 savings or removing 487,000 passenger
  vehicles off the road for one year.

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New Product Announcement

• Current Solar PV Product Short-comings
• High upfront costs for solarizing a home.
  (25K- 50K)
• Consumer Education. Homeowners dont know what to
  ask for complex system components and
  sizing/site requirements.
• Most systems cant be upgraded and scaled up.
• Products dont address need for a Hurricane Storm
  Power Outage Solution

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New Product AnnouncementSolar Freedom Starter
Kit

• Ideal Solution Provides
• Low-cost entry point
• Meets an immediate need
• Power outage solution
• Reduction of monthly utility bills
• Solar in a Box all components.
• Consumer Friendly packaging

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Solar FreedomStarter Kit Components

• 3 Sharp PV modules
• Outback utility-grid inverter
• Concorde Batteries
• Fully Expandable System to 3000 W
• Initial Kit Cost 11,690

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Solar DirectsSolar Freedom Starter Kit

• Basic solar package to run home appliances in
  critical use mode during a power outage.

Primary usage appliance Avg. Watts Usage 1 (Hrs/day) Usage 2 (Hrs/Day)
Standard Fridge 500 24 Hrs -----
Energy Efficient Fridge (Sun Frost) 150 ---- 24 Hrs
25 Inch Color TV 150 45 Mins 7 Hrs
1 Lamp 60 1 Hr 10 Hrs
Clock Radio 1 10 Hrs 10 Hrs
Small Microwave 600 15 Mins 15 Mins
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Solar Freedom 3000 W System

• For Florida, Solar Freedom 3000 supplies 20 -30
  of a homes total electricity needs.
• For a 3000 SF home with 1000/month electrical
  bill, the homeowner would expect to pay 12,000
  per year in electricity (no inflation) or
  120,000 over 10 years.
• The systems allows a 24,000- 36,000 Electricity
  bill Savings (conservative as assumes no
  electricity price increases) over a ten-year
  period --- as well as ensures power availability
  through hurricane season.

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Solar Direct E-Buyer Rewards Program

• Example
• Customer purchases a Solar Freedom package
  (2006), plus a Solar water heater.
• Solar Freedom Starter Kit 12,500 (w. sales
  tax)
• ProgressivTube Solar Water Heater 7,100
  (w. sales tax)
• SUB-TOTAL COST
  19,600
• Florida Sales Tax Exemption on solar -
  1,372
• 2006 Federal Energy credits -4,000
• E-Buyer Reward -2,500
• --------------------------------------------------
  -----------------------
• NET CUSTOMER COST
  11,728
• SAVINGS 40

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Who Needs these Kits?

• Home-owners concerned about future energy price
  hikes and volatility (inflation buster)
• Home-owners of large-scale homes with high
  utility bills (300/month plus)
• Homes in storm-prone, hurricane regions
• Florida and its Keys
• Fixed income, e.g. Retirees

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Plans for Solar FreedomNext Generation

• Market Problem Solar is perceived as ugly.
• Market Solution Aesthetic consumer choices to
  enhance a homes architecture.
• 
  

SunSlates
Uni-Solars Laminate
Kyocera Solar PV Roof Tile
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Future Directions

• Expand Range of Leisure products for
  Energy-Conscious Consumers.
• Become a Trusted Brand for Quality Renewable
  Energy Products
• Like Whole Foods is for Organic Food products.
• Become a public company (2007-2008)

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Questions?