" No licensee has come forward and said anything like, "I sent that bastard Watson $20,000 for a license"
SunCube Manufacturing License Summary
As of 11 February 2007
Our solar PV SunCube technology is unique in several ways and offers many significant benefits to licensees which goes well beyond the SunCube itself and addresses the very core issues facing the solar PV industry.
1. The worlds lowest solar PV $ per watt manufacturing cost.
2. The worlds first solar PV farm $ per kWhs price that equates to fossil fuel base load $ per kWh price.
3. The worlds first solar PV domestic and commercial rooftop $ per kWh at less than grid supply price.
4. The worlds lowest capital cost to setup a solar PV manufacturing plant.
5. The worlds simplest solar PV manufacturing plant requiring just common hand tools.
6. The worlds fastest to commission solar PV manufacturing plant.
7. The worlds most profitable solar PV manufacturing plant, solar PV system and solar PV farms.
8. The worlds first small MW solar PV manufacturing plant for developing nations and smaller markets.
9. The worlds easiest, lowest cost to construct and maintain and quickest to construct solar PV farm methodology.
That is a lot of claims but they are all 100% true.
The basic structure of the license for a 30 MW SunCube manufacturing is summarized below. Further down we have worked up an example of a 3 MW facility which may be of more interest to smaller markets.
1. Term of the license is at least 5 years.
2. One time upfront license fee of US$2.7 million, 50% of which is deductible as against royalty payments. This is scalable downward for plants of below 30 MWs capacity. The license fee also includes virtually unlimited consultancy services from GGE. We will come to you, redesign the SunCube for local conditions and / or suppliers if necessary, work with and train your people to get your SunCube manufacturing facility up and running ASAP and get it running right the first time.
3. Manufacturing royalty of US$3 per cell module. For a typical 3x3 SunCube this is then US$3 x 9 cells = US$27 royalty per 3x3 SunCube. This royalty ensures GGE has a very high interest in the ongoing success of your SunCube manufacturing facility. If you make no profit, we make no profit.
4. Each licensee will have exclusive manufacturing and distribution rights for GGE’s SunCube in the country and / or territory of the licensee as so agreed.
5. Each licensee will have the right to use GGE's current SunCube IP in the form of patents, trademarks, copyrights, trade secrets, design, software and expertise.
6. Suggested manufacturing capacity is 100,000 3x3 SunCubes per year (approx 30 MW or 60 GWh per year) or as otherwise agreed. Cost effective plants can be built down to say 5 MW per year for smaller markets.
7. Estimated capital cost, based on Adelaide conditions, for a 30 MW, 660 GWh, 100,000 3x3 SunCube per year manufacturing facility is around US$2 million (assuming the use of a leased building of 3,000m2).
8. Staffing for a 30 MW plant is around 50 with 35 engaged in direct manufacturing efforts on a single shift basis and a production time of around 45 minutes per SunCube.
9. Plant capacity can then be increased to say 100 MW by moving to 24 / 7 operation without any additional investment in capital equipment.
10. To reduce manufacturing complexity, the critical SunCube solar cell receiver assembly, the pre-programmed micro processor and the inverter will be supplied by GGE. SunCube manufacturing is then very much like manufacturing domestic "White Goods" (washing machines, micro waves, stoves, etc)
11. You do the metal punching, folding, welding (in house or contract it out), get the PCB loaded and make the lens assembly. Then you bolt on the gears, motors, PCB, wires, cell assemblies, inverter, plug in the micro and mount the lens assembly. Test and ship. Simple KISS manufacturing. No need for duplication of expensive high tech manufacturing equipment. SunCube manufacturing is similar to "white goods / domestic appliance" manufacturing, while requiring very little specialized / expensive manufacturing and / or test equipment or highly skilled workers.
12. Suggested 3x3 SunCube retail cost is around ~US$1,025 or ~US$3.42 per DC watt or ~US$0.08 per AC kWh (under Adelaide skies) which includes an inbuilt 2 axis intelligent tracker and AC grid connect fully anti-islanding inverter.
13. SunCube manufacturing profit margins are very good and are well above flat plates. If direct marketing to end customers is utilized, the profit margins are very exceptional.
14. Backing a SunCube manufacturing facility into a solar farm business is also an excellent way to achieve excellent profit margins as that way the solar farm business has access to solar kWhs at prices around those of fossil fuelled base load power plants.
15. We will not be providing SunCube samples or accepting low volume international orders as they may quickly find their way to those who have no respect for our IP. So much more can be learned by visiting us in our beautiful city of Adelaide, especially if you like good wine and our excellent Mediterranean like life style. Late February onward is an excellent time to plan a visit. Once we get to know each other and we have the license agreement signed and a small 5% down payment received, we will travel to you with a SunCube to demo under local conditions.
16. Nothing here is locked in stone. We will work with potential licensees to come up with a license agreement that is a win - win for all parties.
Example of a 3MW per year SunCube manufacturing facility
1. Basic conditions as above except where modified below.
2. Initial capacity of 3 MW per year (10,000 SunCubes per year or ~800+ SunCubes per month).
3. Capital cost of plant and equipment of ~US$500k. (assuming the use of a leased building of ~1,000 m2)
4. License fee of US$270k (50% applied as a credit against future royalty payments)
5. Sales of ~US$10.25 million per year at ~US$1,025 per SunCube (~US$3.42 per watt).
6. Very significant profit margin and quick reply of investment capital.
7. Around 45 minutes of direct labour per SunCube assembly.
8. Approx 15 staff with 10 in direct assembly and 5 in management and marketing.
9. Aluminium metal work and printed circuit board assembly contracted out.
10. Solar cell assembly and programmed / serialized micro processor supplied by GGE.
11. SunCube assembly is composed of the installation of:
o HDPE bearings.
o Gears and motors.
o Printed circuit board (micro processor supplied by GGE)
o Solar cell assemblies (supplied by GGE).
o Inverter if AC SunCube.
o Lenses and lens assembly
o In-house testing using GGE developed sun simulator
All very KISS (Keep It Simple Stupid) and very doable in low annual MW numbers.
Sizing of SunCube manufacturing facilities and license fee
To maintain consistency across licensees and countries, GGE has decided to adopt the following method to size the desired initial annual MW output from a SunCube manufacturing facility and the exclusive licensee fee for the country.
You first look up the annual consumption in TWhs for the desired country from http://www.iaea.org/inis/aws/eedrb/data/AU-elc.html#c1
. For Australia that is 200.66 TWhs. Drop the TWhs and just use 200.66. Then multiple by 0.1 to 0.5 to get ~20 MWs to ~100 MWs as the acceptable range of target SunCube plant sizes.
We use 0.1 for large countries and move toward 0.5 as the consumption drops for small countries with a 1 MW min plant size. This is just a guide and we will work with you to the get size right. The desired plant size also depends on the availability of net metering and feed-in tariffs in the selected country as these will move the desired plant size toward the larger end of the scale.
The licensee fee is equal to one years royalty payments of which 50% is applied as a credit against your royalty account. The license fee is US$90,000 per MW plant size with a minimum of US$90,000. A discount may be applied for plants of 10 MW or greater.
License process: (modified 2 Feb 2007)
1. You sign the GGE NDA/STFU
2. You visit GGE in beautiful Adelaide, inspect the SunCube and our manufacturing facility.
3. We discuss your licensee proposal and we sign a letter of intent.
4. You leave a 5% deposit (min US$20,000) as against the agreed license fee. <<< First payment of 5% (min US$20k) occurs here
5. We hand over a complete BOM showing every SunCube part, it's specification, it's cost and supplier. Additionally you get an AutoCAD based set of drawing for each and every SunCube part that must be manufactured.
6. This will enable you to ensure our costing is accurate, can be verified and can be duplicated in your country by your suppliers.
7. We arrange to visit you with a SunCube and we work with your people to create a workable plan for your SunCube manufacturing facility.
8. You sign the license agreement and pay 35% of the license fee. <<< Second payment of 35% occurs here
9. We continue to work with you to get your and your external contractors ready to manufacture SunCubes.
10. We leave and ready your first shipment of cell 450 cell assemblies and 50 micro processors (enough to make 50 SunCubes).
11. We arrive back with your first order of cell assemblies and we work with your people to manufacture your first batch of 50 SunCubes
12. When your locally manufactured SunCubes have passed our and your test you then pay 40% of the license fee. <<< Third payment of 40% occurs here
13. You are now in the SunCube manufacturing and distribution business and making very good profits.
14. Once you manufacture your next monthly batch and they have pass our and your tests you pay the last 20% of the license fee. <<< Forth payment of 20% occurs here
15. We continue to visit every 2 months for the first year and work closely with you and your people on SunCube marketing, solar farms, future development, etc.
16. You start to pay royalty when you manufacture SunCube 10,001.
17. Your success is our success.
GGE's use of our royalty fee: (added 29 Jan 2007)
1. We will look at using our royalty fee to assist licensees who wish to work with very low income families to bring the advantage of low cost SunCube electricity.
2. We will invest 20% in future SunCube developments and other renewable energy products which may be of interest to our licensees and their customers.
3. We will invest 10% in CO2 offset and other programs which have been shown to be effective at cleaning excess CO2 from the atmosphere.
4. Licensees who wish to use their SunCubes to power their SunCube manufacturing facility will not pay royalty on those units.
5. Other worth while projects which we may see has value to GGE, our licensees and their customers.
SunCube license availability status:
• South America
• EU especially Northern Mediterranean countries
o 3rd Letter of Intent entered into with Eco-Office Ltd of Malta for a minimum 1 MW per year SunCube manufacturing facility including exclusivity for Maltese distribution and sales. Please direct Maltese sales enquiries to them.
o Additionally Eco-Office Ltd has agreed to act as our agent to source and secure a SunCube manufacturing license in Italy.
• Africa (Southern Mediterranean, Northern, Middle and Southern countries)
• Middle East (including Eastern Mediterranean countries)
o 2nd Letter of Intent entered into with Square Engineering Pvt Ltd of India for a minimum 30 MW per year SunCube manufacturing facility including exclusivity for Indian distribution and sales. Please direct Indian sales enquiries to them.
• Southern Asia
o 1st Letter of Intent entered into with ES System Co., Ltd. of Korea for a minimum 30 MW per year SunCube manufacturing facility including exclusivity for Korean distribution and sales. Please direct Korean sales enquiries to them.
• Singapore, Indonesia & Malaysia
• South Pacific
• New Zealand
• Australia (yes we will sell a manufacturing license for Australia)
Additional information and resources (updated 11 Feb 2007)
If you find this opportunity of interest and you wish to initiate discussions please click below to send us an email about your interest.
SunCube Manufacturing License
You will also need to download the GGE Mutual Confidentially Deed (STFU Document), execute the Deed and fax it back to us.