American Solar Network
Executive Summary

AMERICAN SOLAR NETWORK, Ltd. (ASN) manufactures the Award Winning solar "SKYLITEtm" water heater invented by founder Al C. Rich. The attractive "SKYLITE" solar system represents a dramatic, patented improvement over conventional solar systems. It has been recognized as such by the U.S. Department of Energy by winning a coveted Award for "Energy Innovation" and the highly prized "Energy Related Inventions Program" (ERIP) Grant Award. As such, it is a nationally recognized breakthrough in vital, pollution free, energy technology deserving of introduction into the intentional community. New models currently being introduced are targeted to answer the needs of millions of solar water heating applications worldwide where very low cost, Photovoltaic (PV) powered or passive water heating systems are in great demand.


The application potential of ASN solar water heaters is so great that it should become as common a home feature as an air conditioner or washer/dryer, with the added incentive that this feature will be saving the homeowner money. Marketed at the right price, as was the case with Henry Ford's Model "T", solar "SKYLITE"tm water heaters simply makes $ense. Everyone in the nation, and the world, can benefit from saving money and reducing pollution. ASN's international potential is unparalleled with its unique flexibility allowing for the quick penetration into numerous large niche markets where water heating solutions are greatly needed.



As a "Socially Responsible, Innovative Technology Corporation", American Solar Network, Ltd. is intent on making a major contribution to conservation and the reduction of environmental pollution. With capitalization for international expansion, ASN will position itself to be the dominant supplier worldwide of quality, cost effective solar water heaters. In so doing, it will earn an exceptionally strong return on investment for its equity partners abroad.


ASN will initially focus on expanding its penetration into the massive international and doityourself markets as well as into rapidly growing U.S. Utility Load \ Demand Side Management programs. ASN's five year strategy is to expeditiously reduce its manufacturing costs and, by using a very aggressive marketing program and international manufacturing license agreements, be the first into these large markets and exploit each of these opportunities to their fullest. As prices go down, huge dealer markets can greatly expand and will be aggressively pursued. ASN is structured so that the great majority of its shares can be owned by new equity investors allowing a high percentage of profit to go to them. ASN intends to use the exit strategy most beneficial to its equity investors.


The "SKYLITE" solar systems have proven themselves in the marketplace by effectively competing in the residential and commercial solar water heating market. In 1994, over $710,000 in ASN solar "SKYLITE" systems were installed in the Sacramento Municipal Utility District (SMUD) area alone out of ASN's ó,400 sq/ft prototype manufacturing facility at 5840 Gibbons Dr., Carmichael, California. ASN has posted significantly increased sales every year since development began in 1988 and is now poised for a profitable entry into the expanding international solar marketplace.


The positive environmental impact created by the mass use of solar "SKYLITE le" systems is significant. Utility regulators are now insisting that environmental factors be reflected in the projected cost of power generation. Federal and state agencies are looking to solar as a way to meet regional emissions standards. Many millions of tons of pollution can be displaced annually by the mass use of the ASN system. Consumers look to solar and conservation as the most effective ways to help stave off the Greenhouse Effect and Acid Rain pollution. Ultimately, the combined outputs of ASN's products have the potential of producing more energy than the nations largest electric utility but with no pollution.

Dr. James I. MacKenzie, Senior Associate of the 'World Resources Institute", Climate, Energy, Pollution Program, Washington, D.C. estimated that each year, when electricity is produced by coal, electric water heaters produce over 5.8 tons of carbon dioxide pollution. "This is more pollution than the average American car emits per year". Coal powered water heaters also produce over 91 pounds of sulfur dioxide and over 850 pounds of nitrogen oxides ((that contribute to Smog and Acid Rain).

Even a so called "clean" gas fired water heater produces 1.2 tons of carbon dioxide pollution per unit. The pollution created by gas water heaters is great enough for the LA area Air Quality District Management to have stated that "next to car pooling, solar water heating is the next most cost effective way to reduce air pollution".

Many utilities, such as Illinois Power, point to the jobs that would be lost as a reason for continuing to use coal to fire their electric plants. Of vital interest to environmental investors should be the thousands of clean (Black Lung free) and satisfying jobs that manufacturing and installing ASN products will bring. Many countries, such as China need energy solutions to reduce their dependence on dirty coal, and low cost solar water heating would provide such a solution.


Water heating is the single most underrated cause of unnecessary highcost energy consumption and pollution in the World. The solar "SKYLITE" water heater marks the advent of exceptionally appealing, and extraordinarily cost-effective solar water heating technology. No other solar water heating product comes close to matching its flexibility and potential for cost reduction. Its very favorable economics allow electric utilities to gain an additional source of income while providing the owner with savings.

Today's International Community and Utilities are recognizing that energy efficiency and solar water heating are very cost effective alternatives to building new power plants. In October of 1991 ASN was among the very first be in a major Utility solar domestic hot water (SDHW) program. Utilities can be a key entry point for ASN. The volume created will allow for the great decreases in manufacturing cost possible with ASN's product thus placing ASN in a vastly superior competitive position. ASN is already in two new Utility pilot programs.

ASN's advanced technology and strong position in the industry will allow it to continue to out innovate the competition. Many adroit new solar thermal products are currently in various stages of development. ASN is recognized as a true leader in one of the most promising and vital high growth industries in the world today. ASN represents an extraordinary, socially responsible, investment opportunity with the true potential of national and international sales great enough to yield an exceptionally high return an investment.


ASN has received the high honor of a National Award for "Energy Innovation" from the Department of Energy "for a distinguished contribution to our Nation's energy efficiency". This award was the result of a Prized Grant Award from the state of New Hampshire.

ASN has been further recognized by DOE through its Energy Related Inventions Program (ERIP) by being one of less than 580 out of over 30,000 applications since 1974 to win recognition as being worthy of a Commercialization award. This Award is close to $100,000 and is targeted to allow ASN to refine its products and develop testing capabilities. The great h«or of an ERIP grant represents the United States Government's recognition that the solar "SKYLITE" water heater and ASN can make a significant contribution to the energy mix of the United States. That same type of contribution could be made to other nations throughout the world.

In June of 1995, ASN was informed that its response to the National Renewable Energy Laboratory (NREL) request for proposal (RFP) No. RAN514398 met their criterion for "Advanced Active Solar Concepts for Space Conditioning and Hot Water" thus beating out many other responses for this significant opportunity.


ASN is a complete system manufacturer as opposed to being merely the assembler of collector components. ASN designs and manufactures the collectors, drainback tanks and heat exchange/storage tanks. There are three basic collector sizes of 31, 46 and 62 sq/ft. The "SKYLlTE" collector series and complete systems are nationally certified by the Solar Rating and Certification Corporation (SRCC) and the Florida Solar Energy Center (FSEC), and have been proven in the field on hundreds of homes. The greatly reduced cost potential is made possible by ASN's innovative use of durable, light weight and lower cost materials. New ERIP developed designs offer even greater breakthroughs in manufacturing cost reduction and consumer value. ASN's new line of low cost, PV powered, static impeller driven solar collector systems will wholesale for around $550 with PV panel and static impeller driver.

The ASN "Static Impeller Driver" has many advantages over a traditional electric motor including a dramatic increase in efficiency, no moving parts to wear out, reduced size and weight, theoretical power up to 10 horsepower, a virtually infinite number of applications worldwide as well as being an ideal match for photovoltaic and low voltage applications.

The immense national and international market for this static motor include all manner of pumping applications including solar, hot water circulators, irrigation, aquariums as well as fans, refrigeration, electronics, toys, lawn mowers, electric automobiles etc. ASN can have an exclusive on this static impeller driver as well as on a patented "bottom connect" piping strategy which greatly simplifies the cost and labor involved in many solar installation.


The US Patent encompasses 15 claims and was granted to Al C. Rich on June 5, 1990. The Patent is a key proprietary feature which allows more than 18 improvements and innovations over traditional systems. A second Patent on the collectors passive venting feature was allowed in Sept. 1994. These Patents result in many benefits to customers including a high rate of return on investment, significantly reduced cost, greatly improved aesthetics, excellent reliability, freezeproof designs, light weight units and ease of installation.