Electrifying Growth
Electrifying Growth Solar Electricity Solar Hot Water Distribution Residential Commercial
CFED Business Roundtable September 11, 2008 Jamie Resor, CFO
gro & groSolar are trade marks of Global Resource Options, Inc.
Company Overview Solar energy for residential and commercial applications • Strong growth throughout North America • 100 + employees in 12 states and Canada • Diverse customers: – – – – –
Homeowners Affordable housing properties Schools Businesses Government buildings
Market Overview • Electric prices increasing (varies a lot by state) • System cost for solar declining • Clean energy requirements increasing • Risk avoidance strategies gaining ground • Culture change occurring • ITC uncertainty?
Genesis of the Solar America Initiative:
4
Market penetration begins - 2007 residential PV and electricity price differences with existing incentives • Currently PV is financially competitive where there is some combination of high electricity prices, excellent sunshine and/or state/local incentives. 5
Current Service Areas ‘Moderate’ electric increase map Direct Res., Comm. & Distribution Direct Commercial & Distribution
Distr. Center
Base map by 6
Revenues
# Employees @ year end
• 2006 A: $11.4 million
25
• 2007 A: $27.0 million
50
• 2008 E: $55 million
105
• 2009 E: $120 million
175 (E)
Growth and profitability will drive new hires and good jobs. We can only do “good” if we do well.
2008 Hires (approx) • • • • • •
Administration & Finance – 4 Executive ‐ 2 Sales & Marketing – 14 Operations ‐ 7 Construction/Engineering/Mfg. – 8 Solar installers – 15 Total ‐ 50
Capital Structure • Series A and B raised ‐ $13 MM total • SJF led A round in September 2006 • Stock option plan established in December 2006 for all employees • All Series A investors participated in Series B
Company Mission • Delivering peace of mind through solar energy systems and whole energy appreciation. • Creating economic opportunities for shareholders while being socially responsible in business and community. • Providing sustainable, world class clean energy products and service with quality and care.
Employee Respectful Workplace • Open communication with all employees – Monthly meetings on company performance & plans
• Good company benefits (e.g. health, dental, 401k with company match) • Frequent employee surveys to solicit anonymous input • Voted Best Place to Work in Vermont in 2006 and 2007
Company Picnic Environmental stewardship
Hybrid cars for sales force
How Are We Doing Living Our Mission? – – – – – – – –
Recycling, composting, canvas bags Compact fluorescents Efficiency upgrades to heating systems Hybrid cars for sales force Carpooling, biking Buying local and organic when possible In‐kind contributions where aligned with company mission Plan to do more
Affordable Housing
Fenway Park Projects that employees get excited about
Courtesy of the Boston Red Sox
This Old House – TV Show
Conclusions • Attracting employees is key to continued growth • Low turnover is important for morale and service quality • Open communication • Inclusive benefits • Work that employees are excited about helps
CFED Business Roundtable September 11, 2008 Jamie Resor, CFO
gro & groSolar are trade marks of Global Resource Options, Inc.
Company Overview Solar energy for residential and commercial applications • Strong growth throughout North America • 100 + employees in 12 states and Canada • Diverse customers: – – – – –
Homeowners Affordable housing properties Schools Businesses Government buildings
Market Overview • Electric prices increasing (varies a lot by state) • System cost for solar declining • Clean energy requirements increasing • Risk avoidance strategies gaining ground • Culture change occurring • ITC uncertainty?
Genesis of the Solar America Initiative:
4
Market penetration begins - 2007 residential PV and electricity price differences with existing incentives • Currently PV is financially competitive where there is some combination of high electricity prices, excellent sunshine and/or state/local incentives. 5
Current Service Areas ‘Moderate’ electric increase map Direct Res., Comm. & Distribution Direct Commercial & Distribution
Distr. Center
Base map by 6
Revenues
# Employees @ year end
• 2006 A: $11.4 million
25
• 2007 A: $27.0 million
50
• 2008 E: $55 million
105
• 2009 E: $120 million
175 (E)
Growth and profitability will drive new hires and good jobs. We can only do “good” if we do well.
2008 Hires (approx) • • • • • •
Administration & Finance – 4 Executive ‐ 2 Sales & Marketing – 14 Operations ‐ 7 Construction/Engineering/Mfg. – 8 Solar installers – 15 Total ‐ 50
Capital Structure • Series A and B raised ‐ $13 MM total • SJF led A round in September 2006 • Stock option plan established in December 2006 for all employees • All Series A investors participated in Series B
Company Mission • Delivering peace of mind through solar energy systems and whole energy appreciation. • Creating economic opportunities for shareholders while being socially responsible in business and community. • Providing sustainable, world class clean energy products and service with quality and care.
Employee Respectful Workplace • Open communication with all employees – Monthly meetings on company performance & plans
• Good company benefits (e.g. health, dental, 401k with company match) • Frequent employee surveys to solicit anonymous input • Voted Best Place to Work in Vermont in 2006 and 2007
Company Picnic Environmental stewardship
Hybrid cars for sales force
How Are We Doing Living Our Mission? – – – – – – – –
Recycling, composting, canvas bags Compact fluorescents Efficiency upgrades to heating systems Hybrid cars for sales force Carpooling, biking Buying local and organic when possible In‐kind contributions where aligned with company mission Plan to do more
Affordable Housing
Fenway Park Projects that employees get excited about
Courtesy of the Boston Red Sox
This Old House – TV Show
Conclusions • Attracting employees is key to continued growth • Low turnover is important for morale and service quality • Open communication • Inclusive benefits • Work that employees are excited about helps
