Tree of Water and Power
Proposal for a mass-manufacturable
freestanding solar
mounting system
with greater maximum surface area,
lower cost, and far greater efficiency
than any mounting system available



treeofwaterandpower.com
Business Proposal
treeofwaterandpower.com/R&D
Research and Development
mst@californiadesignandbuild.com
Contact



TWP Factory, Power Plant, Solar Farm

Proposal for Acquisition of ~10 acres on Mojave Ranch Road and Funding of TWP Production; Creation of a Solar Farm with a ~7% Cap Rate with Peripheral Non-Destructive Lateral Expansion Potential; Future Leverage and Security for Next-Stage Funding; Risk-Offset Due to Inherent Property Appreciation.

The following is a plan for the acquisition of a ~10-acre site on Mojave Ranch Road, Joshua Tree, for the purpose of creating a factory for manufacture of TWP installations, and a 5-acre solar farm (on 9.7 acres land) with 900 TWP installations, as a commercial power plant, and showroom for future licensing of TWP technology. The location has an international profile, with 3 million visitors per year, with 50% growth in the past 5 years, but one can traverse the entire downtown area on foot in about ten minutes. The property is on the outskirts of this downtown area.

This proposal follows an established business model for solar power plants that have been operating for considerable time now. There is a reasonable expectation of even a ten percent cap rate or higher if operating income is increased, efficiency maximized, or if/when favorable price fluctuations occur. Records show the land owner is selling multiple adjacent lots; there seems like there could be considerable latitude, an offer of 300k would not be unreasonable. The same business model serves as a standalone powerplant, and as a manufacturing licensing hub..


Comparable Case Study

Cascade Solar, Joshua Tree
150 acres, 24MW, 0.16MW per acre
$16.7M budget, 66-day installation

Projected TWP Energy Output

5 acres, 2.6MW, 0.52MW per acre @180 trees per acre, 2.9kW per tree



Mojave Ranch Road, Joshua Tree, CA


Considerations

There are some normal considerations that are not a factor. Electrical power by law must and can only be bought by providers of energy to the grid. There is only one customer, and by law they must buy the product; therefore there are no salespeople, no advertising, no costly and timely expenses that would be the concern of almost all other businesses. The numerous benefits include the ability to quickly adapt focus based on prevailing circumstances with zero lag time. Energy futures can be sold wholesale; one of Joshua Tree’s solar farms sells electrical power to a party in San Diego, albeit through the grid, which makes sense for long-term, large-scale consumers of energy.

After 24 months when the 900 TWP installations are in place on the property, the building itself can be adapted for a sympathetic purposes, which could overlap the property’s function as a power plant with zero loss of output; that is, it could become another business or businesses without interfering with the function of the power plant and therefore its income. While the property is making income passively, the building can be used by more active participants; arguably it would be better for security and maintenance if the building was constantly occupied, as well as providing multiple incomes with the same asset.


Acquisition and Operation of Mojave Ranch Rd

Assets

Land and building
+$400,000
900 x TWP installations
+$2,250,000
Improvements**
+$150,000
Operating income

5 acre, 2.6MW powerplant
+$18,720/mth

+$224,640/yr


Liabilities (annual)
Property tax
-$19,000
Maintenance
-$2,000
Insurance
-$3,000
Property management
-$0
Total liabilities (annual) -$24,000


Total cost for acquisition and installation                                             -$2,800,000
NOI (annual) +$200,640
Est. capitalization rate
7.2%
Cap rate factoring 24 mths R&D
5.2%
**Structure, permits and survey, grid link hardware


Solar Farm Operation


Compensation for surplus electrical energy: $40/MWh* x 2.6MW = $104/hr;

$104/hr x 6hrs peak sunlight = $624/day x 30 = $18,720/mth = $224,640/yr

*Price based on discounted electrical energy futures wholesale market-rate



Funding and Operation of TWP 24 months

Human Resources

Contract engineering firms w/20% contingency
$240,000
Machine operator 24 months
$100,000
Casting/Finishing
$30,000
Office admin 24 months $120,000
Equipment

3D Systems ProX 24 month lease
$280,000
DTG printer
$3,500
Waterjet cutter
$8,000
Grid link hardware
$10,000
Raw materials

3D printer consumables
$20,000
Stock aluminum parts
$8,000
Finishing
$2,000
Operational

Insurance 24 months $24,000
Utilities 24 months $24,000
License/Incorporation/Legal
$2,000
Electrician & Permits
$30,000
Company Management

Salary 24 months $110,000
Total $1,031,500


Water Generation

Current commercially available atmospheric water generators (AWG) can produce practically unlimited amounts of water with the only constraints being electricity and cost of the units. 5 x units of the well-established model GEN-350 ($150k @30k each) can produce approximately 5,000 gallons a week if it were to use 20% of the solar farm’s projected energy output. This could be used to irrigate 0.2 acre of crops, producing over 4 tons of food annually; or it could simply be used to grow native plants such as wildflowers and grasses, encouraging biological life to thrive under TWP’s canopy, providing the underlying soil with integrity via root systems (soil erosion prevention and reversal).

.