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SACRED POWER

Mining gold from the sun's rays - Native-owned Sacred Power finds opportunities in growing solar market

By Harlan McKosato

 
     
 

When you're a young person, you tend to think you could get along without the growing pains. But when you're a young company, the growing pains are much more easily tolerated.

Sacred Power Corp., a producer of photovoltaic integrator systems or solar power, has seen its sales grow at around 30% per year, from $235K in its initial year five years ago, to $1.2M this past year.

"Maybe we need to slow down a little," said Dave Melton, tongue firmly planted in cheek. Melton is the co-principal of Sacred Power and he's from the Pueblo of Laguna. "The best business decision I've made was getting into the renewable energy business."

Sacred Power is the nation's largest Native American renewable technology manufacturer of photovoltaic hybrids, communication shelters, and grid-tie PV arrays (groups of photovoltaic panels). When Melton begins to talk about his work, you can't help but notice his passion for growth and marketing.

"Our product, solar power systems, as (a recent) Wall Street Journal Personal Business article states, 'aren't for tightwads.'" said Melton. "Based on this knowledge, we have targeted government entities because our product, at this point, is too expensive for private ownership.   The government is not necessarily buying with their own money, so they can afford to pay the price. So our clients consist mainly of federal, state, city and tribal governments."

Melton started the company in 2001 on "account receivable financing and credit cards" after leaving Laguna Industries where he served as program manager. He saw the potential for solar power and fuel cells while working for the tribe, and began the company by merging his existing company with that of his partner, Odes Armijo-Caster.

The firm initially received a contract from the Pueblo of Laguna to install renewable energy systems and then they received two contracts from the Bureau of Indian Affairs that, Melton said, "really jump-started them on a path to success."

In 2002, they received a $607,000 contract from the U.S. Department of Interior to provide power to remote reservation homes that have always been off-grid. The next year, they netted a $500,000 contract from the Bureau of Indian Affairs to install remote power transmitters/ repeaters on remote reservations around the country.

Subsequently, Sacred Power got a contract for another $600,000 from BIA to deliver its passively heated and cooled shelters to reservations throughout the West.

Just recently, Sacred Power was awarded $2.5M from the U.S. Department of Agriculture to install their power systems on remote parts of the Navajo reservation here in New Mexico and in Arizona. The grant is similar to one they received from USDA two years ago, which also served the Navajo Nation and brought power to families who never had electricity in their homes.

Sacred Power currently has 13 employees, but it plans to hire as many as 10 new employees in the next couple of months because of the demands of the new contract.

Armijo-Caste says there is more than meets the eye with these systems.

"People are always saying to us 'we need power.' Whether it's solar-powered water wells in Indian Country, or measuring seismic activity in the Caribbean to try to predict the next tsunami, or the next earthquake in the Pacific, there are a lot of applications for this type of technology," he said.

  "We would like to get more involved with FEMA for their disaster-type programs," said Armijo-Caster. "People who are stranded on rooftops with their cell phones, or their laptops, we could get them connected with our communications systems. The people who get hit with disasters, we could get them power."

Armijo-Caster, whose 3,000 square-foot Albuquerque home is totally powered by solar and renewable energy, said the major cost of their systems is the manufacturing of silicon into photovoltaic cells. He said they want to keep their business and the jobs created here in the state, so they do a majority of their business with a New Mexico manufacturer called Matrix Solar Technology, which provides Sacred Power with photovoltaic modules.

Melton, who handles the marketing side of the business while Armijo-Caster is more the technical guy, pointed out future strategy includes Sacred Power evolving from strictly government contracting into the commercial market.

Consumers in the commercial market are beginning to take advantage of solar power tax credits, incentives, and rebates to stimulate use of renewable energy at the local government, industry, residential and business levels.

The New Mexico legislature recently passed the Solar Market Development Income Tax Credit.

"The commercial market for solar power systems is exploding," emphasized Melton. "We want to be the distributor of all the components - the PV modules, solar hot water panels, and hot air panels. And we also want to provide training to regular electrical and mechanical contractors so they can install our systems, as well."

Although Sacred Power is certainly open to large-scale commercial deals, it is not, by any means, moving away from government contracts

Melton believes the best way to keep competitive edge is by "staying networked with your business partners, contacts and buddies. Get out of the office."

He said what he likes best about being an entrepreneur and running his own business is the freedom to make decisions and act accordingly. He said what he likes least are the "mundane and repetitive activities."

His business philosophy is relatively simple, "Manufacture a product that works and provide the best product possible."

The growing pains are much more tolerable for Sacred Power because the future of solar energy is so bright you gotta wear shades.

Writer Harlan McKosato is the Executive Director of his own independent media company, NDN Productions, based in Albuquerque. He is a columnist for the Santa Fe New Mexican, a special contributor to New Mexico Business Weekly, and a commentator for National Public Radio. He is from the Sac & Fox and Iowa Tribes of Oklahoma.
 
   
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