For a long time, solar energy seemed like a renewable energy source for 1 % of the population.
Everyone appreciated the technology, but a lot of interested people could not particularly afford the financial cost that came with providing a natural source of power for their homes. It was not until organizations like PosiGen were established that sustainable energy solutions that could be afforded by low -to middle-income class owners were made available. One of the primary goals PosiGen CEO Thomas Neyhart set out to achieve when creating his company was to create a source that would provide clean, renewable solar energy that was cheap and easily accessible for everyone. In this article, we discuss the gap that the company identified, how it decided to bridge that gap, and the necessary steps PosiGen took to become the organization it is today, providing solar solutions to several homes across the country.
According to the Solar Energy Industries Association (SEIA), solar generation offsets the production of 70 million metric tons of carbon dioxide every year. The amount of carbon dioxide that is not produced due to the use of solar panels is the equivalent of planting 1billion trees. While there is substantial growth in solar generation and the use of solar energy, PosiGen CEO Thomas Neyhart still emphasizes that there is a lot of work to be done as solar energy only accounts for about 2% of all utility-scale electrical generation in the country.
In 2011, Thomas Neyhart decided to reach out to low-to-middle income families in New Orleans. The Posigen CEO quickly identified that there would be a need to assist families that could not receive energy solutions to help them with energy-related issues since the hurricane. In response to the gap that the CEO identified, he created PosiGen as a solution. The goal of the organization was primarily to provide cost-effective solar solutions to homeowners in New Orleans. CEO Thomas Neyhart identified the significant gap that existed at the time and created PosiGen to bridge it. Since its inception, Posigen has been able to install 18000 systems in homes in the USA.
Posigen's CEO did not only identify a need to assist homeowners. The CEO decided early that his impact on society would not be limited only to helping homeowners. PosiGen quickly set out to create jobs in the communities where solar energy solutions were being established. According to Bloomberg, Solar and Wind jobs are currently growing at a rate that is 12 times faster than the growth rate of the entire economy.PosiGen, under the leadership of Thomas Neyhart, has positioned itself to be a significant employer of labor from community to community. Thomas Neyhart quickly identified that there would be a problem providing value to clients if the PosiGen systems were sold and installed without anyone to help maintain them. To address this issue, Thomas Neyhart to employ and train employees from each community to maintain and install the PosiGen solar energy systems. By doing this, Thomas Neyhart provided renewable energy solutions and jobs to the communities he worked in.
The growth of PosiGen can largely be attributed to the strength of its product. PosiGen CEO Thomas Neyhart carefully made sure that PosiGen was much more than a big marketing scheme. The company's net metering system especially is one of its biggest selling points. With Net metering, the solar panels installed for homeowners can generate power for the user. In most cases, in ideal weather, the panels installed will generate more power than may be needed by the home. Any additional energy that is generated on the PosiGen system is pulled from home and put back onto the grid where other homeowners use it. This process gains the homeowner free credits, which are deductible from their energy bills. Traditional energy providers cannot use the system that PosiGen has adopted. PosiGen is only able to save clients money because of the approach that the organization takes to providing solar energy solutions for homeowners.
On each installation. Posigen carries out a blower door test on the house, which is essentially an energy test. The company then proceeds to make up to 20 different energy efficiency swaps all over the house. The changes range from adding insulation to swapping out incandescent light bulbs. These energy efficiency upgrades are designed to help customers save 40-80% more energy than they would have saved with regular solar installations. Under the leadership of Thomas Neyhart, PosiGen identified these cost-effective upgrades and has used them to help homeowners scale their energy efficiency while saving some money.
It is accurate to point out that PosiGen does not run like your average solar company. The PosiGen business model, unlike many other solar energy providers, offers customers a flat rate of $50 every month for a ten-year lease. The company also charges its customers 10$ monthly for energy-efficiency upgrades. 60$ per month for a guaranteed percentage of energy savings seems like a deal that is too good to be true. True to his original vision, Thomas Neyhart has built the business model of PosiGen to reflect its values. Customers at PosiGen do not need a down payment or even a credit check to get access to the technology that PosiGen offers. The same policy applies to PPA's and escalators. This means that PosiGen customers are not shut out from enjoying the offers that PosiGen offers because of their economic ability or lack of such.
To put this into perspective, let's take a look at PosiGen operations on Louisiana, where electricity prices are about 10 cents per kilowatt-hour. Homeowners who use PosiGen in Louisiana have been able to average 125$ in monthly savings. 60$ as the flat rate charge and 65$ net in gains. PosiGen CEO Thomas Neyhart had this to say about the cost-effectiveness of PosiGen.
"If you save someone who makes $150,000 a year, $60 bucks a month, they're going to spend it on Starbucks," said Neyhart. "If you save that for a working family, they're going to spend it on their children, on school supplies, on groceries, and on real needs for their home."
The original aim of PosiGen was to provide energy-efficient solutions for low-to-middle-income families and homeowners. The entire business structure of the organizations reflects this aim. So far, PosiGen, under the leadership of Thomas Neyhart, is doing a fantastic job of helping out communities, families, and the planet.