Renewable Energy Xchange
Introducing the world’s first Renewable Energy X-change enabling metered access to on-site generated renewable energy for all multi-tenant buildings.
REX in a nutshell When it comes to receiving self-generated solar and renewable electricity, multi tenancy dwellings are at a disadvantage. Currently, each individual solar user required an inverter to receive solar energy. With inverters costing up to $6000-$7000 each, solar has been untenable for many unit dwellings. Graham Enterprises has developed and patented the first range of renewable energy distribution systems, specifically designed for sites with multiple meter panels to meter and distribute electricity from one single solar system or multiple renewable energy sources to multiple tenancies. REX will significantly reduce the total cost of solar installations and also enables each consumer to be individually metered for their solar consumption, as well as the freedom to opt in or out of solar generated electricity at the flick of a switch. Not only is this a fantastic safety feature, it also enables the ability for Body Corporates and building owners to sell the generated solar electricity to the individual consumers within the Solar Network. The REX is suitable for both Commercial and Residential communities, or any application that requires metering of multiple users’ individual solar consumption while increasing property values.
Solution With the ability to accommodate and support 2 - 200 tenants (custom models available) and mobile access to individual consumption data, the REX is an efficient and truly viable means of reducing energy costs within multitenanted communities. REX is able to achieve: •
Remote and physical isolation capabilities for individual users.
Tenancy safety auto isolation feature if zero amperage is detected – in the event tenancy is isolated at its grid meter panel, The REX automatically isolates the tenancy from renewable energy feed.
Zero energy export feature ensures site only generates the required volume of energy. o
Applies to sites that lack energy storage.
REX produces only the energy that is demanded by the site and eliminates grid export.
Designed to work inside or outside of embedded networks.
Grid export capabilities when power authority requires additional energy. o
REX sends a signal to isolate all tenancies and community from renewable energy feed, then pushes all available energy (even stored energy) to the grid via an export meter allowing the site to capitalize from this energy sale.
Multiple renewable energy feed capabilities i.e. Solar, electric vehicle, hydrogen, and energy storage.
On premise and cloud-based management software providing operations management, usage and billing services.
Revenue model REX will be offered to market under four revenue models: 1. Wholesale leased REX unit to energy providers / energy retailers: • We provide wholesale REX units leased by energy providers on a month-to-month basis over 5-10-year contract periods. • Each approved energy provider will receive training on installation, management and operational maintenance. 2. Retail Leased REX unit to business: • We provide installation, management and operational maintenance for REX units leased by businesses on a month-to-month basis over 5-10-year contract periods. 3. Leased REX rights to foreign market entities: • We provide access to intellectual property, production patterns and operational models to foreign entities to setup their rex operations. • This model will be offered to market in various global locations on a 10-year license (up-front payment with commissions per installation) with options to extend. 4. In-house retail renewable energy service to business: • We provide installation, management and operational maintenance for REX units and any additional energy sources (solar PV, hydrogen, etc). • Green energy charges are levied based on kWh usage on a month-to-month basis with contract periods of 5-10 years. • Example charge rate is $0.17 per kWh (roughly $0.05 per kWh profit), roughly $0.07 per kWh cheaper than traditional retail energy providers.
Market overview Target Market The target market for REX services includes: •
Australian energy retailers
Direct sales to businesses
Leased rights to foreign energy providers by region
In turn, REX service providers will target: •
Multi tenanted industrial centres
Aged care & assisted living facilities
Strata communities of all sizes
Snapshot of the opportunity for strata communities: Small percentage of market over 5-year contract terms.
Australian Strata Market
$3 Billion AUD 1
(with 5% of market retail sales, 20% of market wholesale to energy providers, 10% of market in house renewable energy retail service)
USA and EU Strata Market
$13.5 Billion USD 1
(combined 28 x the size of AUS market Assumes we receive 10% of total leased market value in sales/commissions)
Consumer incentives Globally, there are significant incentives for customer uptake of green energy sources, in particular, within those countries who have signed up to the Kyoto Protocol. Incentives are made up of rebates for installation in the form of cash or annual property tax offsets, and energy grid return payments under spot pricing or fixed contract arrangements1. 1
Refer to financial analysis for market valuation, profit forecasting and consumer uptake incentives.
Savings over five years per strata size 2 Lots - $8K 5 Lots - $20K 10 Lots – $40K 20 Lots – $80K 50 Lots – $200K 100 Lots - $400K
Competition and market threats Given this is a patented technology and the first of its kind globally, there is no current competition for providing renewable energy to multi-tenant buildings in existence outside of REX. Irrespective of our patents, we are anticipating that copy-cat businesses will enter the market within 24 months of REX entering the public domain. Our market engagement strategy will ensure we have full coverage of Australia, Europe and the USA prior to that time, limiting the impact of copy-cats penetrating our target market share.
Go to market strategy • • •
First Brisbane customer site in Kangaroo Point live May 2019. 20 national installed sites managed by REX and local energy providers between July 2019 - December 2019. Global partner acquisition for leased REX rights between March 2020 – December 2020. 3/05/2019 Software (MVP) complete 28/03/2019 Prefab panel contracts complete
1/10/2019 Internal production of REX panels (no longer outsourced)
24/05/2019 Brisbane site 1 rollout
3/06/2019 Investor sourced ($12.5M)
28/01/2019 Seed funding Software development commenced
27/01/2020 Full functioning software
AUS and NZ energy retailers onboarded (plus 20 national sites)
31/12/2020 Investor buy out option can be executed or public listing
Global leasing of REX rights
Our contribution to date • • •
Developed the working REX panel. Patented REX in Australia and USA (Europe pending). Partnered with a leading software development partner in Perduco Technologies with leading software frameworks, an in-depth knowledge of metering, usage and billing and a sound reputation for developing global Software-as-a-service businesses (Perduco are provide $4M worth of software as a baseline for our systems development). In detailed planning stage for our first site rollout in Brisbane (50-unit complex)
Shareholder remuneration and exit strategy In December 2020 our intention will be to provide investors with an option to sell back shares at a value of $18.75M, or alternatively negotiate an IPO for the company once its value reaches $250M.
Investment ask Asking for $12.5M for 30% ownership of REX limited by shares.
(Investment distribution) Controller
Our priority is to secure funding by early June 2019. We look forward to an opportunity to take interested investors through our detailed pitch deck, business case, financial analysis (with numbers independently verified) and established hardware panel.