orion energy systems inc. nyse mkt: oesx 1 led, controls & renewables zach kurtz sr. vice...

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Orion Energy Systems Inc . NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development www.oesx.com

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Page 1: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 1

LED, CONTROLS & RENEWABLESZach Kurtz

SR. Vice President, Product Development

www.oesx.com

Page 2: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 2

ORION ENERGY SYSTEMS, INC

PROVIDING THE BEST CUSTOMER EXPERIENCE IN THE INDUSTRY

• Retrofit-focused products and services

• Installed retrofit base of over 20,000 customer sites with legacy lighting

• Over 40 years of experience in the building lighting retrofit space

• High engagement but scalable sales channels put us very close to end-use customer

decisions

• Product line with exceedingly high performance

• Proprietary ISON Class high-efficiency LED technology maximizes one-for-one replacements

and total cost of ownership

• Knowledgeable, experienced, responsive, in-market support

Page 3: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 3

APPROXIMATELY 3 BILLION SQUARE FEETRETROFITTED AT 20,000+ FACILITIES NATIONWIDE

48 ManufacturingFacilities

405 Bottling andSales Facilities

168 Bottling andSales Facilities

9 ManufacturingFacilities

20 DistributionFacilities

107 Bottling andDistribution Facilities

121 Cold & DryStorage Facilities

107 Manufacturing andDistribution Facilities

4 Manufacturing Facilities,678 Dealerships

2,469 Retail Facilities

A HISTORY OF SUCCESS

Page 4: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 4

F I R E

1850 1900 1950 2000 2050

E L E C T R I C I T Y

200

150

100

50

4bn yrs agoThe Sun

2,500 yrs agoCandle

1790Gas Lamp

1879Incandescent

1904Mercury Vapor

(Gas discharge)1938

Fluorescent 1965High

Pressure Sodium

(Gas discharge)

1965Metal Halide(Gas discharge)

1996White LED

A TRANSFORMATIVE TECHNOLOGYAT A RARE MOMENT IN TIME

WHY LED?

Page 5: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 5

A MODERATE INVESTMENT…

…THAT RESULTS IN MAJOR RETURNS

MONTH 0 MONTH 12 MONTH 24

Typical 1-3 year breakeven

Cumulative EnergySavings

CumulativeCost of LEDRetrofit andMaintenance

3-5 yearFinancing

Page 6: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 6

ADOPTION RATE AND OPPORTUNITY(OFFICE, RETAIL, INSTITUTIONAL)

THE LARGEST POTENTIAL MARKET IS ALSO THE LEAST PENETRATED

A-Type, 2%

Decora-tive; 31%

Directional; 34%

Down-light; 13%

Troffer; 1%

Park-ing; 7%

High Bay; 2%

MR16; 5%

Streetlight, 5%[classic light bulb]

ie: Chandeliers / Wall sconces

Adoption of Light-Emitting Diodes in Common Lighting Applications May

2013

2012 Energy Savings

Potential Annual Energy Savings

Troffer30%

Parking10%

High Bay12%

52% of the addressable market

Source: US Department of Energy

Troffer / Office Parking High Bay

Estimated Legacy LightingFixture Installed Base

957 millionfixtures

54 millionfixtures

67 millionfixtures

Page 7: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 7

LIGHTING EVOLUTION

EVERY NEW LIGHT SOURCE CHANGES LUMINAIRE DESIGN

Page 8: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 8

LED FIXTURE DESIGN

Page 9: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 9

CONVENTIONAL DESIGN

LIMITED LIFESPAN OF CONVENTIONAL SOURCES REQUIRED THEM TO BE A REPLACEABLE COMPONENT

• Luminaires were designed for a source or “lamp” which was standardized and self contained

• The source was interchangeable and supplied separately from the luminaire

Page 10: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 10

LED DESIGN

LED SOURCES ARE DIFFERENT FROM ALL PREVIOUS LIGHT SOURCES

• Earlier sources simply needed a power source to operate

• The LED is one part of a complex system that requires additional components to operate

DRIVER

CHIP

HEATSINK OPTIC

Page 11: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 11

LED DESIGN CONSIDERTIONS

WHAT ARE THE CHARACTERISTICS OF A WELL DESIGNED LED FIXTURE?

• Thermal management for long lifetime

• Optical effi ciency for volumetric lighting

• Quick disconnects of key components

• Modular design

Page 12: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 12

• Regardless of economics, people buy what they want, in many cases this is LED

• Rebate program conversion to LED emphasis

• Maintenance can be expensive• Cost of lifts, disposal, maintenance

staff utilization

• High use areas for LED Troffer Retrofit (hospitals, c-stores, common areas)

• LED technology offers benefits beyond energy savings

• Improved light quality, super long life for certain applications, improved building aesthetics

OPPORTUNITY DRIVERS FOR LED

Page 13: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 13

A COMPLETE PORTFOLIO OF BETTER SOLUTIONS

• Best performance in market, High ROI/IRR for customer• Optical efficiency and thermal management for greater performance

(ISON Class) • Modularity for simple and low-cost upgrades

INDUSTRIAL EXTERIOR

ISON LED High Bay Series

ISON LED High Bay EnclosedSeries

LED VaporTight Series

ISON LED Area Light

ISON LED Wall Pack

COMMERCIAL

Apollo LED Area Light

Apollo LEDWall Pack

Apollo LED High Bay Series

ISON LED Door Retrofit Suite

Apollo LED Recessed Troffer

LED RetrofitQuick Strip Series

O R I O N R E T R O F I T T EC H N O LO G I E S

Page 14: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 14

LED APPLICATION EXAMPLES

Page 15: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

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Page 16: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

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Page 17: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

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Page 18: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 18

CONTROLS

Page 19: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 19

HOW CONTROLS WORK

CONTROLS FOR LED LIGHTING

• Control type is the method used to accomplish dimming

• Control signal protocol and the wiring type between the controller and fixtureo LED bulbs generally use line voltage methodso LED fixtures use one of more of any of the

methodso To be compatible – the LED product and control

MUST use the same control type

? ?

Page 20: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 20

CONTROL CHALLENGES

OVERCOMING LED CONTROL CHALLENGES

• LED module and driver technology

• Functional diff erences between control types

• Standards progress

• Designing successful projectso Knowing the benefits and limitations of controlling

LEDs

? ?

Page 21: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 21

Controls savings• Dimming, Step Dimming,

Dual Switching• Hours at each output level

(high, low, off)• Smart• Advanced• Integrated

CONTROL SAVINGS

Page 22: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 22

RENEWABLES

Page 23: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 23

Sun All Lights On Half Lights On No Lights On

APOLLO SOLAR LIGHT PIPEDirect Renewable

A side-by-side fluorescentto Light Pipe comparison at

majorfulfillment center

Optimize Low Sun Angles

VCP: Visual Comfort Probability

Uniform Zonal Cavity Distribution

Deliver an Integrated Automatic System

INTEGRATING RENEWABLES

Page 24: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 24

Glazing quality, water-clear, molded Acrylic or Impact-Resistant Polycarbonate, nonporous domes

Breathable gasket design for

atmospheric expansion reliefTamper-proof dome retention system

Highly polished aluminum core

reflector tube with elemental silver top

coat providing 98% reflectivity

Solid tamper-proof retention band

completely clamps dome providing

flame spread protection

Seamless flashing available in

aluminum or powder-coated steel

Closed-cell foam thermal barrier

eliminates condensation and

improves structural rigidness

Proprietary diffuser provides even

distributed daylighting and has an air-tight

seal to prevent insect and dirt infiltration

US Patents:D557,817; D560, 469; 7,638,743*Other patents pending

Certifications:• AAMA/WDMA/CSA/101/I.S.2/A440-08• Florida State High Velocity Hurricane Zone

including Miami-Dade FL14069 (HVHZ model only)

APOLLO SOLAR LIGHT PIPEDirect Renewable

Page 25: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

Orion Energy Systems Inc . NYSE MKT: OESX 25

Case StudyAchieving Energy Independence

By retrofitting the lighting system with an integrated system, Orion was able to cut the lighting load by more than 70 percent. A 50 kW wind turbine at 6.5 m/s wind speed provides for nearly 60 percent of the modified load level. Coupled with a 90 kW solar system at an annual generation of 1,390 kWh/m2/year, a significant portion of the remaining load is provided for, leaving only the customer charge.

Original Total Load 743,000 kWh

Lighting Load Reduction - 376,600 kWhWind Generation - 194,000 kWhSolar Generation - 105,100 kWh

20112010 2012 2013 2014

Interior Lighting Retrofit

2009

Light Pipes Installation

Solar Photovoltaic Project

Integration of Power Monitoring System

Exterior Lighting Retrofit

Addition of Energy Management Controls

Lighting,

Controls and Light Pipes

Solar

Monitorin

g

Example Site

Page 26: Orion Energy Systems Inc. NYSE MKT: OESX 1 LED, CONTROLS & RENEWABLES Zach Kurtz SR. Vice President, Product Development

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QUESTIONS