The home power market is a relatively new market. Over the last thirty years the industry has been dominated by the single technology, photovoltaics. The sales of home based power systems have steadily grown. The sales have been divided between leasing the equipment and direct sales.
Our primary target market in the Phoenix, Arizona area had 45,000 solar power installations as of 2015 with nearly all of them being photovoltaics. Like any market, competitors can enter the market and gain a share of the market. Nets Edge can enter the market with an advantage of being 75% of the cost of photovoltaics. This financial advantage will allow an entry into the solar market. We will also be providing our customers with the advantage of leasing the equipment for the home. The industry shows the around 75% of new solar installations have been using lease financing. Nets Edge will secure a relationship with several lease financing companies to offer customers the best choice.
We expect many of the early customers will purchase the system instead of leasing. These “early adopters” have typically been wealthy families in the Phoenix surrounding areas of Scottsdale and Paradise Valley. Our advertising budget in the first year will be directed to these areas through traditional sales methods including mail, newspaper and magazine advertising along with targeted internet and cable marketing.
Our advertising will include the downside of photovoltaics. We will explain to the public how with photovoltaics the hotter it is outside, the lower the efficiency of the panels and the effective life of photovoltaics is twenty years. This will be compared to the nets Edge Prime Power system that gets more efficient the hotter it is outside, and the Prime Power equipment can last fifty years with proper maintenance. The Prime Power system does not need government subsidies to be a desirable addition to a home. Government and electric utility regulations will be less of a factor in the Nets Edge marketing.