XZERES CORP
WILSONVILLE, OR--(Marketwired - Sep 11, 2014) - XZERES Corp. (
"Our ClassNK certification is a major milestone for the company as it officially enables us to begin selling the 10kW system in Japan and capitalize on the accelerating momentum we have established over the past several months," said David Hofflich, CEO of XZERES. "Japan is a vast market opportunity for our small wind turbines given the strong demand for renewable energy and limited competition in the 10kW size range due to the strict certification standards."
In order to address its substantial power needs, Japan is pushing for the development of more renewable energies by establishing an economically attractive feed-in tariff rate that highly rewards small wind turbine installations of 20kW and below. There are several market segments that can benefit from the compelling economics, including rural homes and businesses, farming and agriculture, micro power grids, and investment-based yield funds.
"We have been proactively promoting and selling our wind turbines ahead of receiving the certification, and we anticipate the strong initial demand for our 10kW system to accelerate," continued Hofflich. "To support our current orders and future deployments, XZERES has established a wholly owned subsidiary, XZERES Japan, with an initial office located in Tokyo and dedicated website at www.xzeres.jp. XZERES Japan is currently working with key partners, including distributors, dealers and investment funds, to grow the sales network and rapidly build this new market pipeline."
Supporting the initial go-to-market strategy, XZERES recently installed a 10kW ClassNK certified wind turbine system at a composite fabrication plant in Kami-Amakusa, Kumamoto, Japan. The installation marks the company's first system deployed in the country, which in this particular location is expected to generate an internal rate of return of 14%.
ClassNK is a rigorous, high-standard certification criteria, similar to Small Wind Certification Council certification in the U.S. and Microgeneration Certification Scheme in the UK. The certification further validates the quality of the engineering, design and power performance of the XZERES 10kW small wind turbine system. Additionally, the company is in the process of obtaining ClassNK certification for its Skystream 2.4kW to further its product offerings in Japan and leverage its sales channels.
The ClassNK certification is required for a turbine to be eligible for Japan's feed-in tariff scheme. The small wind market in Japan represents compelling customer economics for the company's systems with internal rate of return in the range of 10% to 30%, which is based on a site's wind speed.
About ClassNK Certification for Wind Turbines
In Japan, the Ministry of Economy, Trade and Industry (METI) has introduced a Feed-in Tariff Scheme on July 1, 2012. Small wind turbine systems with an output of less than 20kW that are confirmed by METI to comply with the provisions of JIS C 1400-2 or equivalent standard (for example, JSWTA0001 which is published by the Japanese Small Wind Turbines Association), are eligible for certain benefits under the scheme. All the electric power generated and supplied to the power grid using small wind turbine systems will be bought by the participating electrical power company at JPY 57.75/kWh for 20 years.
In order to assure conformity of a small wind turbine system to these standards, Nippon Kaiji Kyokai (aka ClassNK) offers certification of small wind turbine systems that verifies the system meets the established requirements based on the JSWTA0001 standard.
ClassNK is accredited by Japan Accreditation Board as Product Certification Body for Wind Turbine Products (type certification of small wind turbine).
About XZERES Turbines
XZERES' Skystream 2.4, XZERES 10, and XZERES 50 wind turbines are the best-in-class small scale wind turbines for agricultural, residential, small business and microgrid applications. XZERES turbines are the leading, small-scale wind energy solutions, with more than 9,300 installations worldwide.
About XZERES
XZERES Corp. is a global renewable energy company. The company designs and manufactures on- and off-grid distributed wind turbine systems as well as energy efficiency solutions for commercial, light industrial and residential markets. XZERES products reduce energy costs and carbon footprints. Headquartered in Wilsonville, Oregon, the company's international distribution network supports the deployment of its products in 110 countries and on all seven continents. For more information please visit 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. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those identified under "Risk Factors" in the Company's filings made with the Securities Exchange Commission. Actual results may differ materially from those contemplated by these forward-looking statements and the Company does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this press release.
