With all the drama this week surrounding the President's announcement the United States would be withdrawing from the Paris Accord, there's still no question investors should consider potential rising stars in the green energy arena, and we've got one today that's recently been attracting quite a bit of interest.
Renewable Energy & Power, Inc. (OTCBB: RBNW) is a Nevada based company that is dedicated to a cleaner, greener planet. The company generates and cultivates emerging technology in the renewable and alternative energy sectors of LED lighting, solar power and solar power storage capabilities.
However, it appears the company's most recent two announcements suggest its focus on LED lighting could very well be division that takes the company to another level. Back on May 15th, Renewable Energy & Power announced they're receiving a wide variety of LED lighting from overseas distributors via shipping containers of product.
"This mass importation of the latest LED lighting products allows our Company to service customers quickly and at exceptionally competitive prices," said CEO Donald MacIntyre. "Lower volume specialty products will still be imported by air-freight; but mass-volume shipping containers for more customary LED Lighting requirements makes our products readily available in every market on a timely basis at the best possible pricing."
Then, just last week the company announced that its retrofit with new LED lighting replacing old High Intensity Discharge (HID) lighting for the exterior areas of a California condominium association resulted, according to the association's director, in an 80% lower power bill in the first month's use. The switch to LED lighting also increased the brilliance of the lighting and extended the illumination to previously darkened areas as well.
"Switching to LED lighting over the old, outmoded models, produces remarkable savings in power costs right from the start and continuing year-after-year, paying for the retrofit in a relatively short period," said CEO Donald MacIntyre. "The reduced power requirements of LED lighting benefit not just the user but our entire world as it lowers the need for energy production and consumption. Retrofitting for LED lighting is a classic win-win, for the user and all of us."
The company is clearly starting to get some traction, and when we look at the entire renewable energy space, it's not like RBNW doesn't have the right path to succeed. While green energy was nothing more than a hope and a prayer 20 years ago, it's here, it's now and it's going to grow for those companies who can step in and fill the demand.
Many Americans date their interest in and awareness of green energy to the 2006 release of the documentary An Inconvenient Truth. Since that time, the impact of global warming and climate change has become a household topic, and individuals, businesses and industries across the globe are more aware of their carbon footprints.
While it is common to think that "going green" and focusing on renewable energy is a relatively new way of doing things, to quote the writer Bryan Walsh, "Green technology has no history - which isn't to say it has no past." Windmills helped transform the American West in the 1800s, providing power for irrigation and setting the stage for wind power's resurgence a century later. Solar water heaters used to be common in the early 1900s. Today, the markets for different types of renewable, alternative and hybrid sources of power generate billions of dollars annually and employ tens of millions people globally.
Within the Renewable Energy & Power Inc. family are three different business lines that operate in synergistic fashion and fuel demand for each other. LEDLites USA produces and markets LED light fixtures and components for both the residential and commercial markets. LED stands for light emitting diode. LED light is highly energy efficient, producing more light and less heat at lower cost.
Recognizing that LED lights are better for both the environment and the bottom line, governments around the world began instituting environmental regulations to phase out the familiar incandescent bulb. Since January 2014 no incandescent light bulb has been manufactured in nor imported into the United States. Advances in technology continue to increase the thermal and economic efficiency of LED lights, making them cleaner for the environment and more cost efficient for the consumer.
First breaking onto the electronic market in 1962, early LEDs were often used as indicator lamps for electronic devices, replacing tiny incandescent bulbs. They were eventually packaged into numeric readouts in the form of seven-segment displays, most commonly seen in digital clocks. Today's LEDs are particularly useful in advanced communications technology. Current reports suggest the LED lighting market will double from $30.5 billion in 2016 to over $60 billion by 2020.
LEDLites USA is the first company to enter the LED lighting market with a background in both the design and manufacture of power supplies (fixtures) and associated thermal management (bulbs). The manufacturing background allows the company to produce a product that is not only cost efficient but also one that maximizes the capability of the LED bulb.
Photo-voltaic technology was born in the US in 1954. Solar power is arguably the cleanest, most reliable form of renewable energy available, and it can be harnessed in several forms to provide power to homes and businesses. Solar-powered photo-voltaic (PV) panels convert the sun's rays into electricity by exciting electrons in silicon cells using the photons of light from the sun.
Renewable Energy & Power Inc.'s solar energy division operates under the name Sol-HY. Their proprietary and patented technologies offer a more efficient collection of solar energy than existing conventional technologies. This allows Sol-Hy to provide higher electrical efficiency and significant production cost savings. The company has licensed a number of patents for this process, and continues to file proprietary patents on developing technology, as well as trademarks, trade names, and copyrights.
The third division in the organization is Power Stac, a green energy storage technology that stores solar produced power for future use and stand-by power sources. As a market sector, green energy storage is growing rapidly, and is expected to reach $8 billion by 2026. Moreover, worldwide growth in the use of solar powered electricity is accelerating growth in the storage market as well.
Overall, renewable energy as a market is increasing exponentially. As of June 2017, renewable energy investment commitments from GE Energy Financial Services exceeded $15 billion. According to the International Renewable Energy Agency, almost 10 million people were employed in the renewable energy sector in 2016. A January 2017 report published by the Environmental Defense Fund's Climate Corps program estimates that solar and wind jobs are growing at a rate 12 times as fast as the rest of the US economy, which is currently estimated to employ more than $4 million.
Beyond the employment sector, The LED lighting market is projected to double from $30.5 billion in 2016 to over $60 billion by 2020. The solar energy market is expected to grow at a CAGR of around 10% between 2015 and 2020, reaching an estimated value of $148 billion by 2020. The solar hybrid market has equally impressive numbers, with industry analysts projecting a CAGR of more than 9% over the same forecast period.
This means potentially big numbers for Renewable Energy & Power Inc. Their most recent financial statement for the period ending 03/31/17 shows an 18% growth in sales from the beginning of Q4 2016 through the end of Q1 2017, and a 25% year on year growth for the period Q1 2016 to Q1 2017.
While LEDLites USA is the primary revenue stream for the company today, pending patent technology for their solar panels and development of Power Stac could increase their revenue streams substantially.
A New York Times article stated that representatives of American cities, states and companies are preparing to submit a plan to the United Nations pledging to meet the United States' greenhouse gas emissions targets under the Paris climate accord, despite Trump's decision to withdraw from the agreement, in hopes of meeting or surpassing the original pledge to reduce America's planet-warming greenhouse gas emissions 26 percent by 2025, from their 2005 levels.
Led by a team with vast experience in the electronics and semiconductor industries, RBNW's contribution to renewable energy has enormous potential, and through the company's innovative products and proprietary technologies, can offer new and better solutions to lighting, solar power and energy storage.
As one can see here, Renewable Energy & Power Inc. (OTCBB: RBNW) is committed to advancing new technologies and new efficiency to make our world a cleaner and more sustainable environment. And if the stock's recent attraction of volume interest over the last few months is any indication of the stock's future performance potential, its current $8M market cap would clearly suggest upside potential - especially if the company can continue to garner the attention of more and more large commercial business and institutions around the country.