By Michael Bowker
By comparison Southwest Windpower did $10 million in revenue in 2006 and expects to do $24 million this year. Mariah believes it will gain an edge over its bigger competitor by capturing the California market. “We see a rich market in California,” says Hess.
Before the product was launched, the company had to address problems of noise, wildlife safety and neighborhood aesthetics in order to be able to crack the state’s market. “It took three years of engineering work, but the Windspire is now virtually noiseless and it spins slow enough that birds can see it and avoid flying into it,” Gabrys says. “At 30-feet high, it is lower than most residential homes, so it is permitted in most urban areas.”
“Without question, our biggest challenge was getting the cost of the product down to where homeowners will want to buy it,” says Gabrys. “We also knew that the durability and maintenance requirements would be big issues for homeowners. That’s why we built the tower out of galvanized steel. It will last at least 20 years with very little repair or replacement requirements. We didn’t use composite elements and that saved us money, too.”
The biggest marketing challenge for Mariah is convincing the public that renewable energy can be affordable. Hess praised California’s cash rebate program for homeowners purchasing alternative energy products for being one of the best in the nation, but says Mariah plans to be competitive without the rebates. This is a critical step because in the past, wind companies have been dependent on tax breaks provided by the state and most closed their doors in the late 1980s when the state legislature abolished the rebates.
There are many steps between this small company and success, but with the right market moves someday Californians just may call their wind Mariah.
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