NEW ENERGY: THE FRANCHISE APPROACH

Have it YOUR way!

The next chain outlet concept: Energy experts
Michael Kanellos, May 2, 2007 (C/NET News)

WHO
Standard Renewable Energy (CEO John Berger), Conergy, a German solar panel manufacturer

WHAT
The two companies are building a US network of energy experts, NewPoint Energy Solutions. The new “chain” will bring brand recognition and economies of scale to consumers entering the renewable energy/clean tech market.

WHEN
Conergy is looking to earn half its revenue outside Germany by 2008.

WHERE
The brand will be national.

WHY
- Half the cost of a solar system is installation and service. With standardized service and volume purchasing, the new brand can cut costs and make installation more appealing. Conergy, now expanding into the US as well as into wind turbines and biogas, is one of the largest German solar installers with a $30 million panel manufacturing site in Eastern Germany. In Germany, solar systems are cheaper because there is larger volume.
- Service: A NewPoint Energy Solutions representative (usually an electrician or other trained, qualified person) goes to a commercial building or home, performs a free audit, makes a list of recommendations (insulation, water heater, solar system, etc.), bids for the work. Residence price averages $33,000, commercial buildings $60,000.

QUOTES
Berger: "How do you make using renewable energy easy? There is nobody doing that… Utility bills are on the forefront of everyone's mind. Some retirees have electric bills that rival their mortgage payments…We believe Americans believe they have a God-given right to have their cake and eat it too…"