D.C. Veritas Week 4: Customers TEAM: Durell Coleman Andrew Harner Diana Lin Pedro Silva “Vertical Axis Wind Turbine”

Customer Hypothesis: What we thought? User/buyer/payer Owns a home Highly environmentally conscious Lives in CA, TX, CO, IL, WI (wind and people) Pays 15 cents per kWh on average for electricity Has an average electric bill between $100 and $150 Reduce by 10% of their total electric bill They have looked into PV’s The reason they haven't is the expense They would buy a wind turbine from an unknown firm Influenced by neighbors and spouse

What we ran? House interviews 20 homeowners On-line survey 36 homeowners Industry experience Solar “Proxy” Wind leanings Map of “customers”

Wind Energy Cost Homeowners Incentives

Our Customer Map Puerto Rico STATES TO CONSIDER STATES WITH BIGGER POTENTIAL DC

Industry experience: Main Driver is $/kwh Another driver is to reduce tier (tier 2 is $.14/kwh and tier 3 is $.28/kwh) Target customer bill > $100 In 2010, small turbine sales $82.4 millions Potential market is 13 million of houses

Customer Responses

New customer profile User/buyer/payer Owns a home Highly environmentally conscious Lives in CA, TX, CO, IL, WI, NY Pays 15 cents per kWh on average for electricity Has an average electric bill between $100 and $150 Would be interested in saving $10-15 dollars per month Payback period < 5 years Which would be 10% 25% of their total electric bill They have looked into PV’s The reason they haven't is the expense They would buy a wind turbine from an unknown firm Influenced by neighbors and spouse

Earlyvangelist Archetype (Dennis) Fits the new customer profile In 50s with kids in college PV’s - want to couple with remodeling and is $$. Subscribes to Northern Tool Company Magazine. He would buy a wind turbine from an unknown firm and are interested in beta testing. Has exhausted many of the energy/money saving alternatives. Less concerned about their neighbors than many and compares the turbine to antennas and other such things on people's roof.

QUESTIONS?

Index 1: Market Growth US

Index 2: Market Growth UK

Index 3: CA tier reduction