SOURCE: Xzeres Wind Corp.

December 01, 2010 08:58 ET

XZERES Wind Introduces Micro-Generation Utility Model

Company Launches Disruptive Business Model Selling Wind Energy Directly to End-Users Globally

WILSONVILLE, OR--(Marketwire - December 1, 2010) -  XZERES Wind Corporation (OTCBB: XWND), designer, developer and producer of distributed generation, wind power systems for the small wind market (2.5kW-100kW), today launched its Micro-Generation Utility model. This innovative business model offers residential and commercial customers all the benefits of owning small wind power systems while providing the company with a high margin, recurring, revenue stream. Utilizing this platform, XZERES will sell the energy generated by its wind power systems, onsite at a discounted price below the local utility rates via power purchase agreements (PPAs). Designed to eliminate upfront capital costs and other operational barriers, the Micro-Generation Utility model provides customers with clean, renewable energy while serving as a hedge against volatile electricity rates for 20+ years. 

"Essentially, XZERES has entered the retail energy business serving as the energy provider to its customers, much like a utility. We are very excited to launch this novel business model, which represents the accumulation of months of work by our team. XZERES is the first small wind power systems company to adopt a 'wind-as-a-service' business model, taking advantage of a similar, but uniquely different, PPA financing mechanism that has accelerated commercial solar installations over the past few years," said Frank Greco, XZERES' CEO. "The Micro-Generation Utility model allows customers to reap significant long-term cost savings with their energy bills without the long-term risk of rising electricity rates, and XZERES maintains a high margin, recurring revenue stream for the duration of the contract. It promises the best-case scenario for all parties."

The Micro-Generation Utility model is available for the XZERES 442 10kW small wind power system, equivalent marine unit and our future, to-be-released larger devices. Typical installations can vary from approximately 1-50 turbines, depending upon site characteristics. Under the terms of the agreement, XZERES will conduct site-assessment, permitting, installation and grid connection as well as the management and support of the wind power systems. At the end of the contract term, the end user customer then owns the wind power systems for a significant portion of its remaining useful life and continues to enjoy the ongoing benefits of onsite energy production from the systems with no further costs.

"The creation and launch of what we believe to be the small wind industry's first Micro-Generation Utility offering demonstrates XZERES' commitment to introducing new business models, products and services that will further our growth objectives, provide cost-effective renewable energy solutions for our customers, and has the potential to create significant shareholder value" added Greco. "Thanks to the creativity of our team in developing this unprecedented program, we are now able to provide customers in the United States and globally with the opportunity to benefit from wind energy without the upfront costs associated with system purchase. We've received very positive feedback from potential customers regarding this new program, and we expect to announce our first customers in the near future."

For more information on the XZERES' Micro-Generation Utility model, XZERES Wind Corp. or any of its products, please visit www.xzeres.com

About XZERES Wind Corp.:

XZERES Wind Corp designs, develops, manufactures and markets distributed generation, wind power systems for the small wind (2.5kW-100kW) market. Our grid connected and off grid wind turbine systems, which consist of our 2.5kW and 10 kW devices and related equipment, are utilized for electrical power generation for applications and markets such as residential, micro-grid based rural electrification, agricultural, small business, rural electric utility systems, as well as other private, corporate infrastructure and government applications. Our wind power systems are focused on distributed energy, where a specific machine's energy output is largely or entirely used on-site where the equipment is installed, as well as grid connected applications. While many of our customers take advantage of their local net-metering rules within the United States and Feed In Tariffs that are often available in Europe and Internationally (to sell power back to the grid), our wind power systems are not dependent on transmission needs to carry the energy produced to another location. For more information please see the Company's web site at www.xzeres.com

Forward Looking Statements and Safe Harbor Statement:

The information provided herein may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. XZERES Wind Corp claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These "Forward-looking statements" are largely based on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Such forward-looking statements include, in particular, projections about our future results included in our Exchange Act reports, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate. These forward-looking statements may be identified by the use of terms and phrases such as "anticipates", "believes", "can", "could", "estimates", "expects", "forecasts", "intends", "may", "plans", "projects", "targets", "will", and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters such as new business models, new products, product enhancements, new technologies, sales levels, expense levels and other statements regarding matters that are not historical are forward-looking statements. Management cautions that these forward-looking statements relate to future events or our future financial performance and are subject to business, economic, regulatory and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements of our business or our industry to be materially different from those expressed or implied by any forward-looking statements.

These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: (a)new business models may be more difficult and/or take longer than anticipated, may be more costly than anticipated and may have unanticipated adverse effects relating to the Company's business; (b) the challenge of compensating and retaining key employees; (c) the impact on the Company and our customers from the current domestic and international economic, geo-political and financial market conditions; (d) the success of our new products and new business models in achieving their expected benefits; (e) to perform as expected without material defects; (f) to be qualified and accepted by our customers, (g) to successfully compete with products, systems, technologies and services offered by our competitors; (h) we may not be successful in undertaking the steps currently planned in order to further develop the business; and (i) other risks and uncertainties described in our filings with the Securities and Exchange Commission.

Neither XZERES Wind Corp. management nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and subsequent facts or circumstances may contradict, obviate, undermine, or otherwise fail to support or substantiate such statements. We caution you not to rely on these statements without also considering the risks and uncertainties associated with these statements and our business that are addressed in our filings with the Securities and Exchange Commission that are available on the SEC's web site located at www.sec.gov. Certain information included in this press release may supersede or supplement forward-looking statements in our other Exchange Act reports filed with the SEC. We assume no obligation to update any forward-looking statement to conform such statements to actual results or to changes in our expectations, except as required by applicable law or regulation.

Contact Information

  • Contact:
    Tina Mortensen
    XZERES Wind Corp
    (503) 388-7331

    Media Contact:
    Beckerman
    Xzerespr@Beckermanpr.com
    201-465-8007