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Allied Building Products brings solar distribution to a new level
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Becoming a solar expert Helpful resources available for those looking to break into solar market
Respect for Humanity & Contribution to Society
Torrance firm shines light on LEDs
Advertiser Index
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PUBLISHER Glen Hobson 205-733-1341 glen@tipsmag.net ASSOCIATE PUBLISHER Rick Harless 205-733-1324 rick@theelectriccurrent.com SR. ACCOUNT EXECUTIVE Jim Barnhill 205-733-1343 jim@theelectriccurrent.com CIRCULATION/EDITORIAL Brandon Greenhill 205-733-4343 Brandon@tipsmag.net WEB DESIGN Jacklyn Hobson Jhobson2005@gmail.com OFFICE MANAGER Steven Hobson steven@tipsmag.net Executive and Advertising Offices 2070 Valleydale Rd, Suite # 6 Hoover, AL 35244 toll free: 866.981.4511 phone: 205-733-1341 fax: 205-733-1344 www.theelectriccurrent.com The Electric Current is distributed free to qualified subscribers. U.S. Postage paid at Birmingham, Alabama and additional mailing offices. The Electric Current is distributed to to qualified owners and managers in the electrical industry. Publisher is not liable for all content (including editorial and illustrations provided by advertisers) of advertisements published and does not accept responsibility for any claims made against the publisher. It is the advertiser’s or agency’s responsibility to obtain appropriate releases on any item or individuals pictured in an advertisement. Reproduction of this magazine in whole or in part is prohibited without prior written permission from the publisher. POSTMASTER: Send address changes to The Electric Current 2070 Valleydale Rd., Suite #6 Hoover, AL 35244
On the cover: Cover image provided by SMA
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The Electric Current October/November 2011
PRINTED IN THE USA
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Allied Building Products brings solar distribution to a new level By Dave Jenkins, General Manager Solar Division of Allied Building Products Corp.
900kW system installed at PSEG Central Division Operating HQ by Solis Partners
National reach, logistics capabili- tributors and manufacturers that have es- stocks solar PV panels, rail, fasteners, centies and additional services to con- tablished themselves in adjacent indus- tral and string inverters, and other BOS in tries have also entered the space. The three locations nationally: New Jersey, tractors provide the differentiator According to the Solar Energy Industries Association, grid-connected PV installations in the second quarter of 2011 grew 69 percent over the second quarter of 2010. Six states installed over 10 MW each in the second quarter compared to only three states in all of 2007. This market growth has attracted several new industry participants throughout the solar supply chain. Established contractors with decades of history in other trades have entered the solar installation business. These include electricians, roofers, HVAC contractors, homebuilders, and others. Meanwhile dis-
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result is broad and diverse participation across the US. “More than 100,000 Americans are employed in solar, twice as many as in 2009. They work at more than 5,000 companies… across all 50 states.” indicates Rhone Resch, President and CEO of SEIA. Allied Building Products Corp. is one of the relatively new entrants to the solar distribution business. Year to date, Allied has supplied over 10 MW of PV panels, mounting hardware, inverters, and other BOS components, representing 100% growth over 2010. The company supplies and
The Electric Current October/November 2011
Southern California and Hawaii.
Beginnings in the Roofing Distribution Business The company was established in 1950 in Jersey City, New Jersey as a family-operated roofing and custom sheet metal fabrication business. The company’s territory was the New York / New Jersey market and had just five employees and five thousand square feet of warehouse space. Through its commitment to customers and manufacturers, Allied ultimately became one of the nation’s largest distributors of building products.
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The company’s two primary businesses are exterior products (roofing, siding, windows and accessories) and interior products (drywall, acoustical tile, commercial insulation, steel stud, etc.). Allied steadily built a presence in roofing distribution, growing from a handful of branches in the 1970’s to dozens by the late 1980’s. Allied helped to lead the industry push into newer and more advanced roofing products, including single ply membrane roofing products for low slope commercial buildings. By 1996, it reached over $450 million in sales and the company’s owners decided to sell the business to Oldcastle, Inc., the North American holding company for CRH Delivery vehicles with solar panels plc (NYSE: CRH). The management team remained in place at the company and the business continued to flourish. Today Allied’s sales are nearly $2 billion with 180 branches as far as Massachusetts, Florida, Alaska and Hawaii. The company’s focus and presence in the top metropolitan markets are aligned perfectly with the country’s top solar markets. The SEIA’s top ten states in 2010 (see table 1) are markets where Allied has maintained top market share in the building products distribution business. Table 1: 2010 State Ranking - Grid-Tied PV Installations (Source: SEIA) Rank State 1 California 2 New Jersey 3 Arizona 4 Pennsylvania 5 Colorado 6 North Carolina 7 New York 8 Maryland 9 Massachusetts Boom truck loaded with Satcon inverters for PSEG 10 Hawaii
Product Convergence? Meanwhile solar product trends in the 2005-2007 timeframe were indicating roofing and solar markets were becoming more intertwined. Several PV manufacturers were marketing thin film products for low slope commercial roofing applications and others were developing “solar shingle” products for steep slope / shingle roof applications. Residential rooftop installations were booming in California and New Jersey. Roofing manufacturers were courting solar manufacturers and distributors. The largest commercial roofing manufacturers: Carlisle, Johns Manville, Firestone, GAF
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and Sarnafil were exploring relationships and made announcements of partnerships with players in the solar industry. CertainTeed, Eagle Roofing, Dow and many other manufacturers of residential roofing products announced new solar roofing products or intentions to develop such products.
Solar Distribution: Fewer, Larger Players? Traditionally, specialty solar distributors have provided a key support role in the supply chain for solar products. Since the early development of the solar industry in markets such as California and Hawaii, solar distribution has provided stocking inventory, sales specialists trained in solar products, and broad product portfolios to service a variety of installation types. Solar distributors also provided training and technical knowledge to support the growing ranks of new solar integrators entering the market. As the market has grown, so have product portfolios and the number of players in the industry. To support diverse product portfolios and the diverse markets experiencing solar growth, it became clear that solar distributors would need ever increasing capital and volume to adapt
The Electric Current October/November 2011
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to the ever-changing market. In 2008, Allied decided to seriously explore the idea of entering the solar market. Research with solar installers, manufacturers, and other industry service providers indicated Allied’s geographic reach, strong balance sheet, distribution expertise, roofing knowledge and logistics capabilities could set Allied apart from other solar distributors and help establish a long term competitive advantage. Later that year, Allied supplied solar PV panels, inverters and mounting hardware for its first project, a 20kW system installed on its own building in Wall Township, New Jersey. Since that time, Allied’s solar distribution business has steadily grown, often by word of mouth. Allied’s solar PV sales of panels, mounting hardware, and other balance of system components grew from $2 million in 2009, to $15 million in 2010, to a run rate of $30 million in 2011. During that time Allied’s residential and commercial solar supply businesses have both developed. The key ingredient for growth has been Allied’s focus on differentiated customer service. Residential solar contractors can rely on Allied’s fleet Rooftop deliveries of flat bed trucks with “piggyback” forklifts and professionally trained drivers to deliver PV panels and balance of systems to their jobsite destination on the date and time of their choosing. Additionally, Allied’s dedicated credit professionals have the ability to work with commercial customers on large projects exceeding one MW. Going forward, Allied plans to greatly expand its customer base and utilize its field sales force to help uncover new leads for solar contractors.
Project Profile: PSEG
Somerset, NJ. Allied’s unique ability to deliver solar products to the jobsite and its mobile crane capabilities helped support Solis’ rapid and effective deployment of the system. With limited space available at the jobsite, Allied supplied PV panels, mounting hardware and Satcon inverters as needed. Allied’s mobile crane truck hoisted the Satcon inverters onto the concrete pad the day labor was scheduled after storing the inverters at Allied’s warehouse for several weeks. Additionally, Allied’s credit team provided construction credit during the course of the build out.
In August 2010 Allied supplied a 900kW system to Solis Partners, a growing commercial and utility-scale solar integrator based in Manasquan, NJ. Solis’ customer was PSEG, the diversified util- Project Profile: Martin Farms ity based in Newark, NJ (NYSE: PEG). The project was installed on InMay2011Alliedsupplied800kWofSolarWorldpanelstoDynamic the rooftop of PSEG’s Central Division Operating Headquarters in Solar in support of their Martin Farms project in Pennsylvania. ❑
Martin Farms
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The Electric Current October/November 2011
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Becoming a solar expert Helpful resources available for those looking to break into solar market By Ciara Wakefield before electrical contractors can take advantage of this hot market, they must carefully educate themselves and make strong partnerships to maximize their potential. SMA America — the leading domestic supplier of solar inverters — has many resources and services to offer electricians making the move to solar power.
Who is SMA? SMA America is the U.S.-based subsidiary of global solar technology leader SMA Solar Technology AG, which boasts 19 subsidiaries, more than 5,300 employees and continuous double-digit growth. Since its inception in 2000, SMA America has shown an unfaltering commitment to the continued development and implementation of leading-edge products, as well as support for industry professionals. SMA supports installers and small businesses in the solar industry through innovative partnership programs that provide technical training and marketing assistance.
Is solar energy your Plan B? Whether exploring new opportunities, evolving with the times or pursuing an advantage over competitors, more electricians are entering the solar market. As one of the most promising renewable energy sources, photovoltaics (PV), which generates electricity from sunlight, offers the greatest potential for continued and sustained job growth. “In a changing job market electricians should position themselves for future success by preparing for future possibilities. More customers are asking about PV installations and electricians should be prepared to provide the answers,” said Mike Holt, chief executive officer of Mike Holt Enterprises and creator of Understanding NEC Requirements for Solar Photovoltaic Systems textbook and DVD programs. “PV is a young industry with participants who are enthusiastic about their special skills.” The future of our energy supply lies in renewable energy, but
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As the world leader in inverter technology and manufacturing, SMA realized that building the industry through pioneering technology alone was not enough. Developing an expert workforce was critical for long-term success. Installers must have the latest technical knowledge but also the ability to market their businesses — and themselves — to be successful. With a growing industry comes increased completion and if electrical contractors are to succeed, they must have the ability to thrive in their new endeavor.
The Electric Current October/November 2011
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+ opportunities, priority technical support, professional marketing collateral and services, access to promotional materials, professional sales tools and more. Membership pays off right from the start with free club benefits including an online ZIP search/listing and product training from the SMA Solar Academy. Additional club and member services are also available for a minimal fee. Installers who position themselves as SMA Solar Power Professionals and partner with SMA in everyday business have access to marketing campaign services, such as custom banners and vehicle signage, which sets them apart from the competition. Member services are specially designed to provide support through the strength of the SMA brand. By simply combining an installer’s experience and SMA’s resources, members can easily maximize the potential of their business. SMA Solar Power Professionals can take advantage of exclusive services that will provide the corporate support that an installer’s business needs. To take advantage of Sunny PRO Club offerings, prospective members must maintain a licensed electrician on staff, are responsible for paying an annual membership fee, and are required to attend one SMA training per year.
Marketing Effective marketing is especially critical for individuals getting started in the solar business. Solar professionals and electricians have an excellent knowledge base in their craft, including designing and installing residential and commercial solar systems, but time constraints or lack of marketing know-how often restricts them from reaching their full potential. SMA offers the world’s largest product range with the support of a creative marketing team. By joining forces through a Sunny PRO Club partnership, SMA can help take an installer’s business to the next level by providing comprehensive, diverse marketing materials and strategies. Becoming an SMA Solar Power Professional will provide access to world-class tools designed to provide users with a competitive advantage. SMA’s Sunny PRO Club services are designed to provide installers with cost-effective, professional marketing tools. SMA can help create a custom campaign tailored specifically for its Sunny PRO Club members and their businesses. World-class marketing Sunny PRO Club tools available to Sunny PRO Club members include personalized SMA understands the needs of installers and has created the service stickers, custom reference sheets and customized banners. Sunny PRO Club members can select materials and campaigns Sunny PRO Club, a membership-based professional partnership program that serves as a one-stop shop for training and other key that best fit their needs. Members can customize their strategy to specifically target potential customers in their market. These tools resources in order to help businesses maximize their potential. Through the Sunny PRO Club, installers are able to take advantage are designed to systematically increase an installer’s market presof SMA’s strength, brand and resources to help grow their business. ence and ultimately drive sales. With SMA’s help, members will Sunny PRO Club members are able to get an edge on the com- have the freedom to focus on doing what they do best — selling petition and increase their market presence with expert training and installing PV.
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Regional Forums As part of SMA’s continued effort to keep installers up to date on product information, new technologies and installing best practices, our Sunny PRO Club also offers SMA Regional Forums. These forums are available to both Sunny PRO Club members and non-members. Attendees participate in technical training and hands-on product workshops, as well as learn about the exclusive marketing solutions offered by the Sunny PRO Club. SMA kicked off its Regional Forum series earlier this year with successful events in locations including Sacramento, Denver and Phoenix. Forums continuing through the end of 2011 include Nov. 9 in San Diego, Nov. 11 in Long Beach, Dec. 2 in Philadelphia and Dec. 7 in Toronto. The Regional Forum series continues into 2012 — Jan. 24 in Atlanta, Jan. 26 in Tampa, Feb. 9 in Honolulu, Feb. 28 in Portland, March 1 in Seattle, and March 13 in Salt Lake City. These forums are just another way SMA aims to make strong partners stronger. Each forum provides a full day of technical training, marketing solutions and hands-on product workshops designed to help attendees become most effective in the field. Attendance is free, but advanced registration is required. Professionals can learn more at www.SMARegionalForums.com.
Solar Academy In addition to the technical training and marketing support available through the Sunny PRO Club, the SMA Solar Academy helps professionals of any experience level improve their skills, keep current on the latest technologies, get details on NEC compliance and learn best practices. The SMA Solar Academy offers specialized knowledge and ad-
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vanced training on SMA’s inverter technology tailored to interested parties all over the world. It presents the latest trends, new development and up-to-date topics in the industry. Courses are targeted for all degrees of technical skill level, including novice installers, advanced installers, solar designers, renewable energy professionals and sales specialists. Classes are held at the SMA America headquarters in California as well as at rotating sites all over North America. The state-of-the-art Solar Academy training facility features a tactile learning environment with access to an innovative inverter display. Sunny Boy and Sunny Island inverters are mounted on a “learning wall,” along with an SMA Combiner Box, Combi-Switch and Sunny WebBox. Attendees can also experience SMA’s commercial products, the Sunny Tower and Sunny Central, via handson training. This functional education emphasizes small class sizes in an effort to foster ample individual attention. In conjunction with the training facility, Web-enabled cameras allow trainees to view the interior components of inverters in operation. Webinars are also held on a regular basis to supplement the core curriculum. Sunny PRO Club members can take advantage of free and discounted training. It is also worth noting that many Solar Academy training sessions qualify attendees for North American Board of Certified Energy Practitioners (NABCEP) Continuing Education Credits. Electricians looking to add solar power to their professional toolkit can partner with SMA and know that whether it’s the latest in technical training, marketing support or leading solar inverters, SMA can help make their future a little brighter. ❑ Ciara Wakefield is the Sunny PRO Club manager for SMA America and SMA Canada.
The Electric Current October/November 2011
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Respect for Humanity Contribution to Society
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ESTABLISHED IN 1935, HIOKI HAS GROWN TO BE A LEADING DEVELOPER AND MANUFACTURER OF ADVANCED TEST AND MEASUREMENT INSTRUMENTATION FOR USE BOTH IN THE FIELD AND LEADING EDGE FACILITIES AROUND THE WORLD.
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orporate campus headquarters is located on a 23-acre site in the suburbs of Ueda City, Nagano, Japan. In addition to the headquarters and numerous local sales offices, Hioki has affiliates and joint venture worldwide including Hioki USA Corporation in Cranbury, New Jersey, Hioki China in Shanghai, China, Hioki Forest Plaza Corporation in Nagano, Japan, Hioki Engineering Service Corporation in Nagano, Japan, TKK Hioki Co., LTD. in Taiwan and Hiking Technology Co., LTD. in China. Hioki’s pledge to its “quality first” policy is second to none having earned the international standards ISO 9001 (Quality) and ISO 14001 (Environment) certifications. The use of HiQS Quality Control System and HiPS Production System techniques ensure a timely and swift release of high quality products. By employing over 160 engineers in the R&D department Hioki continues to develop an ever growing offering of state-of-the-art instruments to meet the needs of tomorrow. Hioki believes that the voice of the customer is of the utmost importance and thus must be heard throughout the entire organization. As Hioki serves a global customer base of 38 plus countries generating as many as 50,000 product/application requests annually, we implemented the Hioki Information Network System which allows our customer requests and needs to be shared promptly among the development, production and sales & service departments, so that we can propose the best possible solutions to our customers. The product offering from Hioki continues to grow each year. The products are separated into one of eight categories: 1. Power Measuring Instruments both portable and bench top for high level performance applications, for PQA analysis, Power Demand Metering and for managing power lines. 2. Recorders and Memory Recorders which serve a primary purpose for servicing and maintenance recording, simultaneous recording of multiple signals, waveform capture of high-speed signals, and for power line fault monitoring. 3. Electronic Measuring Instruments for low resistance measure-
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ments, battery testers, inductance, capacitance, impedance meters, signal sources, waveform generators, bench type DMM’s, leakage current and withstanding voltage test equipment. 4. Environmental Measuring Instruments for temperature measurement, speed rotation meters, light meters, magnetic field meters, non-contact temperature measurement, data loggers for temperature, humidity, DC voltage, AC voltage, AC current, leak current, illumination & 2D thermo testing. 5. Clamp Sensors for wide-band frequency, high precision, waveform observations, power lines and power meters. 6. Clamp On Testers for basic AC current in average & TRMS styles and multifunctional AC/DC average and TRMS current clamp styles. 7. Field Measuring Instruments such as analog multimeters, LAN cable testers, optical power meters, line voltage & current noise loggers, DMM’s both bench & handheld type, phase rotation meters, voltage detectors, insulation testers and earth testers. 8. X-Y In-circuit tester for ultra high speed PC board inspections. Hioki products serve the needs of many market areas such as transportation, aviation, utility, manufacturing, hospitals, automotive and facility management. Our customers include electrical contractors in both commercial and residential fields, maintenance personnel, linesmen, mechanics and engineers alike. Applications vary from power quality testing, power demand testing, voltage & current testing, battery testing, event recording, LCR testing, insulation testing and more. Whatever the application may be, check out Hioki for your solution. Following the slogan “Seek to Be Unique,” the 600+ employees of Hioki strive to achieve new and significant advances, instead of being satisfied with the status quo. Hioki considers its mission to deliver the utmost value to the customer in a timely fashion. Hioki product and assistance is available through your local distributor and/or a sales representative office in your area. Or you may visit www.hiokiusa.com for further information. ❑
The Electric Current October/November 2011
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Torrance firm
shines light on LEDs by Austin Siegemund-Broka Staff Writer ights fill the LEDtronics conference room – rows of unique ceiling lights, boxy warehouse lights, hanging chandeliers, stylish streetlights lined up against one wall. Light–emitting diodes, called LEDs, power every one of them. The sight dazzles, but it also represents how Torrance–based LEDtronics works with LEDs. “We keep building custom products. That’s what we are doing; we do that constantly,” said Pervaiz Lodhie, LEDtronics president and CEO, glancing around the room with the look of a proud father. Every LEDtronics light houses environmentally friendly LED chips, bits of solid chemicals that glow when electrons move across them. But LEDtronics specializes in “packaging” the LEDs,
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Lodhie says – they build LED chips into lighting fixtures of hundreds of different shapes, sizes, and colors, designed to fit the diverse applications of LEDs today. Customers, including IBM, Toyota, Boeing and the city of Torrance, come to LEDtronics for light fixtures as well as custom–designed lighting systems. The company estimates they’ve designed over 10,000 LED fixtures, and Lodhie says LEDtronics develops one new product or redesign every day. “We are constantly being challenged by the industry to give them the precise color, the precise this or that,” he said. LEDs today consume 90 percent less energy than traditional
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incandescent bulbs and last about 100 times longer, though they often cost much Advertisement more. LEDs also give off no energy as heat, their colors are easily adjustable and they are durable, able to withstand physical shocks and vibrations. The market for the resilient light source took off in the late 1990s, more than tripling in size from 1995 to 2003, according to market research firm Strategies Unlimited. Strategies reports that the industry grew from $3.8 billion in 2003 to $5.6 billion in 2009, driven by a boom in LED backlighting for cell phones and TVs; the market then doubled in 2009, reaching $10.8 billion in 2010. Rarely does the market’s demand for a new technology rise that quickly, says Vrinda Bhandarkar, a senior analyst at Strategies Unlimited. “There’s a lot of excitement and ‘cool’ associated with LEDs,” she said. But the LED market’s recent boom doesn’t tell the whole story, Lodhie says. “What people are finding as a `new LED market’ has been there for decades. It was behind the scenes, and nobody really knew,” he said. Lodhie and his wife started LEDtronics in their Torrance garage in 1983. Lodhie remembered early LEDs, developed in the 1970s, that only came in a couple colors and gave off little more than a dim
glow. But despite those limitations, he knew, the LEDs’ durability made them perfect for applications where they would weather vibration and couldn’t easily be changed. LEDtronics initially produced LEDs as small indicator lights for a handful of niches – manufacturing machinery, elevators, military aircraft. LEDtronics supplies the same kinds of lights to those markets today. “These were the natural places that drove the industry continuously,” Lodhie said. But LEDs increased in brightness roughly tenfold every decade, and 1995 brought the first white LED. LEDtronics packaged each new LED chip into bulbs for an increasing array of customers and applications, Lodhie says. Today, they still produce lights and indicators for industries such as healthcare, aerospace, defense and electronics. But Lodhie says some customers now use LEDtronics’ lights in outdoor lighting, for parking lots and car dealerships, and in interior lighting design for museums and other architectural projects. The company has also developed streetlights in Torrance and Pasadena, and bridge lighting for such structures as the Golden Gate Bridge – part of a movement by cities, including Los Angeles, Seattle and Boston, toward using LEDs in municipal lighting. And they’ve even designed LEDs for entertainment lighting
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projects, such as decorations on sets for the Tony–winning musical “Wicked.” “The revolution has been taking place, but people didn’t see it,” Lodhie said. “It’s a really exciting time for me, (with) what I have done in creating this market.” But Lodhie also does not see LEDtronics’ success – or the current LED industry boom – as the end of the revolution. “It has just begun. It’s a drop in the bucket; a lot more has to happen,” he said. LEDs will provide light in more and more lighting applications, Lodhie believes. Market analysts, including Bhandarkar at Strategies Unlimited and Jamie Fox, LED research manager at competing firm IMS, say the same. “LEDs are the future of light. Most lighting applications will go to LED lighting,” Fox said. “Most people agree on that; it’s just question of when.” Lodhie says LEDtronics, and the LED industry, do still face several obstacles to widespread LED use. Many governments, including in the United States, have passed laws to phase out some types of incandescent bulbs to reduce energy use. That is good news for the LED industry. Some LEDs’ high purchase prices can scare consumers, Lodhie says, though LEDs usually cut energy expenses enough to make them a strong long–term investment. For consumers considering in–home LED lighting, for instance – a growing market, but one in which LEDtronics participates only minimally – LED light bulbs can cost daunting prices of $20 to $30. But increasing LED usage and better technology will drive production costs and prices down, Lodhie says. “It’s just a continuation of making it more affordable for more and more people, and that is happening,” he said. He plans to enter the residential LED market more fully when that happens, and when the company’s brand has a stronger public presence. But more crucially, he says, many lighting consumers just aren’t aware of the possibilities and benefits of LED light. As consumers increasingly accept the energy–sipping bulbs, Lodhie believes, LED use will simply keep increasing. “There’s no limit to applications,” he said. “There’s no end to it.” ❑
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The revolution has been taking place, but “ people didn’t see it,” Lodhie said. “It’s a really exciting time for me, (with) what I have done in creating this market.
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Advertisers Index
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Company Name
Alcan ARPI California Turbo Cementex Dexter + Chaney Everblades EZ Connector Foundation Software Helios Solar Works Hioki USA Industrial Control & Supply Inc. Jonas Software Krenz-Vent KVAR Lapp USA LEDtronics NABCEP Pelsue Phase- A- Matic Ram Mount Rud Chain, Inc. SMA America Solar Divison of Allied Building Products Steelman Industries SunWize SurgePure Utility Metals Zistos Portable Video Systems
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