First Edison Commercial, LLC is an entity that owns solar facilities to generate electric power for sale to end users and is offered by First Edison Corporation. First Edison Corporation is an independent power producer that provides the full scope of solar project development and management. In addition to benefiting from lucrative financing and tax benefits, our customers enjoy a transparent view of their projects with Energy360 – a digital platform that helps minimize costs and wasted energy. And, thanks to our unique expertise in underwriting, we are able to assess risk and target small commercial properties – an underserved market that’s ripe with opportunity. In 2016, First Edison is on track to complete six projects, with many more on the docket.
Despite all of the US’s bountiful natural resources, the country’s current energy situation is far from ideal. We simply aren’t getting the most out of what’s available to us. In fact, the US Dept. of Energy reports that commercial buildings waste over 30% of consumed energy. At the core of the problem is a lack of efficient systems, failure to monitor real-time energy use, and the inability to control energy usage – all of which are in drastic need of improvement. We simply can’t ignore this commercial energy misuse. This misuse plus the risk of global climate change, foreign energy dependence, and an outdated electric and business infrastructure create real and obvious threats to our long-term economic strength.
However, hope is on the horizon – and it’s coming from 93 million miles away.
Furthermore, a sharp decrease in solar equipment costs over the past 3-4 years makes solar feasible for even more customers. Perhaps, the investment opportunity most difficult to ignore are the tax benefits. In December 2015, legislation extended Federal tax incentives, which were set-to ‘step down’ at the end of 2016, for solar projects. Extended tax benefits include three parts, the Federal investment tax credit (ITC), bonus depreciation, and accelerated MACRS depreciation regulations. Firstly, the Federal government extended the ITC, which currently sits at 30% of the investment amount of the solar project, at a decreasing rate, until 2021. This is a 30% tax credit for each dollar invested. In 2022, the Federal ITC for commercial solar projects becomes permanent at 10%. Secondly, there is bonus depreciation in the first year. Finally, there is a 5 Year accelerated depreciation schedule. These benefits can help finance a large fraction of solar power system costs – up to 67% in California. Coupled with attractive PPA rates, they provide a long term cash flow in addition to the tax benefits.
Despite these lucrative benefits and the solar market’s overall promise, all four market segments – residential, small commercial, large commercial, and utility-scale – remain underserved. This is particularly evident in the two commercial segments, where less than 3% of the 45,000 commercial buildings in the Pacific Gas & Electric Company (PG&E) territory are utilizing photo-voltaic solar. A transition away from fossil fuels and into distributed generation will achieve a clean energy economy for our nation. With tax benefits set to decrease from now until 2021, the time for a market leader to emerge is now.
It’s time to optimize commercial energy assets with First Edison – the world’s number one solution for generating, conserving, and monitoring energy.
With past experience in underwriting, our team is able to perform unmatched due diligence on every small commercial business we serve through clean energy audits. These audits help us pinpoint the ideal energy generation and efficiency technologies for each project while minimizing the impact on the environment. Other solar companies tend to shy away from the small commercial market segment due to difficulties in risk assessment but we are targeting them head-on.
At First Edison, we do things a bit differently than traditional solar companies. In developing partnerships with tax investors, equity investors, and commercial developers, we’ve created win-win relationships within the industry. We offer an all-in-one service that our competition simply can’t match in the small commercial market sector. We originate, construct, and develop the entire scope of our own commercial and industrial projects, focusing on the 25kW-1MW range. First Edison Commercial, a separate entity, funds solar operating assets through PPAs – providing the unparalleled tax benefits and attractive yields discussed earlier. In 2016, we’ve already financed projects with debt, equity, and tax equity. We have also installed energy efficiency building controls in every project, allowing the customer to disaggregate, understand, and control their energy use. First Edison controls every variable in the solar equation!
Every American should have access to distributed energy resources and is something we’re helping to ensure for every small commercial property. First Edison is truly “technology agnostic” with regard to the components used in our systems, meaning we use the highest performance and most appropriate technology for each project, regardless of manufacturer or technology – no matter the unique situation. We also use only the highest quality equipment and materials, with cost adjustments for each project. We take great care to optimize occupant comfort and power while minimizing wasted resources. The days of utility deposits and high bills are over. It’s time to take control of your meter!
We’ve partnered with InTech Energy, to obtain the full suite of Energy360’s solutions for our projects through an initiative called the Mid-Market Dynamic Energy Efficiency Program. With Energy360, customers will enjoy complete visibility and control over their commercial property energy portfolios. Energy360 transforms traditional building systems into smart, highly communicative networks that optimize energy usage and maximize energy savings. Energy360 lets users:In the larger commercial market segment, First Edison has a developer agreement with an electronics giant. This strategic partnership allows First Edison to offer unique storage technology solutions directly to larger commercial projects. The storage technology allows First Edison to minimize energy costs by combining energy efficiency, solar energy generation and energy storage.
By targeting underserved markets, we are able to offer a unique energy product to a vast, untapped market.
The world needs its clean energy. Since opening our doors in 2015, we focused on this goal. First Edison has grown from a heavily-researched concept into a legitimate, market-ready enterprise. Our accomplishments include:
First project completed. After months of researching our markets and perfecting our offerings, we developed our first solar project – and successfully so – earlier this year.
Organic sales growth achieved. Without raising any external capital, we now have a number of successful projects under our belts and have arrived at a point where we’re selling 1-2 new projects per month.
Third-party opportunities. We also have opportunities to finance projects originated by third parties when returns are attractive for our investors. In addition, there are prepaid PPA projects that we may acquire to minimize our investment and allow our investors to secure additional tax benefits.
Key technology secured. In addition to our developer agreement with the electronics company, we’ve leveraged a valuable partnership with InTech Corporation into the use of the Energy360 platform. This energy efficiency and building controls SaaS solution is crucial to the operational end of our business.
Hardware supply chain. We’ve entered into supply agreements with several solar panel and component manufacturers that deliver the highest quality standards available in the market today. We offer only made-in-America solar panels.
For more information on our future development, please request access to this profile’s private side.
The First Edison business model originates from a drive to improve quality of life in the US. At the forefront of the clean energy movement for decades, our founding executives gained firsthand knowledge of the threats posed by the risk of climate change, foreign energy dependence, and a variety of other factors. Desiring a better solution, the group then leveraged their collective industry connections and experience. The result was First Edison. Let’s meet the team that’s leading the charge towards transitioning America into a clean energy economy:
Bob Chaudhuri, CEO – Our day-to-day leader has over two decades’ worth of experience working in the industry, with expertise in executive management, corporate development, and mergers and acquisitions. His most notable energy achievements include recently repowering a 6 MW biomass power plant in Northern California and co-founding Solar Universe, a solar installation company. Previously, he served as a Partner at Diablo Funding Group and President of Wireless Plus for 7 years, which he eventually sold to Securicor. Bob steers daily operations for First Edison and is also responsible for overall company growth.
Tim Baylor, CFO – Tim has 10+ years of clean energy experience in addition to over two decades in financial management. Tim began his career in the startup world, including a key roles with GoPago, a financial payments company that sold to Amazon and Seldera, an energy project finance company that sold to Ameresco. He’s also held finance roles within energy industry including K Road DG, Green Charge Networks, and Arable; Tim also currently sits on numerous corporate and early stage company advisory boards. Tim’s got full reign over corporate and project finance.
David Pascualy, President – Our third exec’s efforts in solar have been dedicated to furthering the development of PV solutions that efficiently generate renewable energy, which he’s done for over 15 years. Most notably he Founded Pacific Solar Energy in 2003 – an early entrant into the commercial, agricultural, and PV system solutions space. David’s top responsibilities include customer acquisition and solar plant implementations.
Warren Linney, Director – Warren, one of our Co-Founders, formerly served as VP of Marketing for sustainable redwood products company www.ForeverRedwood.com. He’s also Chairman of the World Stewardship Institute, an NPO that raises consciousness around renewable energy, and the former CEO of Cellular One. He serves in a key strategic role as our Director.
The First Edison team also receives key outside help from a talented two-man Board of Advisors. The first seat belongs to Greg Hitchan, a former Naval Intelligence Officer and corporate lawyer with key mergers and acquisitions experience. Energy industry veteran Ashish Goel holds the second seat, alongside his responsibilities as President of InTech Energy.