Solar Motor Works
“90% of the fuel load gone”
Solving our energy needs
1)Engine
2)Solar collector
3)Thermal energy storage
All three together is “Engine system”
Brian Gunn 801-829-8202
brian@solarmotorworks.com
Possibilities
Real estate
Cars
Boats
Trucks
Engine
System
Airplane
Electricity
coal and nuke
Solar Motor Works
Renewable
energy
Hydraulic
equipment
2
Target Market of First Product
Apartments
Commercial
Houses
Real Estate
Engine Systems
Solar Motor Works
3
How the Engine alone makes
Money
In High Utility States
Grid elec. income $9,600 / year
Tenant elec. Inc.
$5,700 / year
Building elec/h/c
$1,000 / year
Heating cooling
$7,200 /year
Total value
$23,500 / year
ROI on engine 235%
Solar Motor Works
4
How the Engine alone makes
Money
In low Utility States
Grid elec. income $ 800 / year
Tenant elec. Inc.
$1,000 / year
Building elec/h/c
$1,000 / year
Heating cooling
$7,200 /year
Total value
$10,000 / year
ROI on engine 100%
Solar Motor Works
5
Why Apartments?

Ownership critical during R & D

Sell engine heat and electricity

Bank leverage based on cash flow

Maximum ROI during R&D – self funding
Solar Motor Works
6
Market Opportunity

Install Engine in apartment complexes

Gross revenue increase by 1.6 time base

Maximum ROI is OWNING

No outside sales during first 7 years.
Solar Motor Works
7
Market Entry
Apartments
Engine only - $10,000 - ROI 225%
Engine & solar collector - $20,000 – ROI 120%
Engine, solar collector, and storage - $30,000
– ROI 88% and 24/7 solar
Solar Motor Works
8
Competition - potentially

bloomenergy.com

Power companies

Infinia.com

Solyndra

You name it...(list is long and distinguished)
Solar Motor Works
9
Grid Competition
Type
Cost
Engine system (solar)
2.6 c/kw-hr
Engine (Nat. Gas)
5 c/kw-hr
Coal plant
5 c/kw-hr
Bloom Energy
14 c/kw-hr
Infinia
30 c/kw-hr
Diesel
35 c/kw-hr
Solar Motor Works
10
Wind Competition

Wind 4 times “engine system” installed cost

Wind produces only ¼ of 24 hour cycle

Wind costs 20 times more than “engine system”
for the same value to grid

Wind not 24/7

Value of wind electricity less than 2.6 cent/kw-hr
Solar Motor Works
11
Solar Competition

PV solar is 12-24 times “engine system”

PV produces ¼ of 24 hour cycle

PV costs 30 times more than “engine system”
for the same value to grid

PV not 24/7 solar

Value of PV solar less than 2.6 cents/kw-hr
Solar Motor Works
12
Barriers to Competition
Acceptance by Grid regulators
IBC building codes
Local city regulations
National regulations
UL listing
Solar Motor Works
13
Investment Opportunity
“Right to production line”
Right to buy and install engines
$10k engine = increase $100-140k in value
Best Option: Hold 18 months, 1030 tax
exchange. Capture $100k value for $10k cost
Solar Motor Works
14
Use of funds
Apartment Acquisition

$2-3 million as down payment at 25% LTV

Brian invests up to $400k
Result of Apartment Acquisition

$400,000 residual income per year
Solar Motor Works
15
Additional funds after first prototype

$1.5 million for 50 engine systems for testing

$200k for 4-5 patents for IP.

No marketing needed until proven out
Solar Motor Works
16
What your investment buys

Access to the next wave of innovation - energy

Access to new company possibilities

Access to great ROI – up to 235% on engine
Solar Motor Works
17
Exit Strategy
Options

Sell apartment (capital return)

Hire team to convert more apartments

Enlist others and be middle man - leverage

Why exit? 20 years of deals await you...
Solar Motor Works
18
Possibilities
Real estate
Cars
Boats
Trucks
Engine
System
Airplane
Electricity
coal and nuke
Solar Motor Works
Renewable
energy
Hydraulic
equipment
19
Solar Motor Works
“90% of the fuel load gone”
Solving our energy needs
1)Engine
2)Solar collector
3)Thermal energy storage
All three together is “Engine system”
Brian Gunn 801-829-8202
brian@solarmotorworks.com