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American Solar Inc An Innovative Solar Start Up Case Solution

Solution Id Length Case Author Case Publisher
1731 447 Words (3 Pages) Susan V. White, Karen Hallows North American Case Research Association : NA0345
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Kathryn can pitch the new technology quite effectively to Hanover Inns located in Virginia. The firm already has the technology and the resources to manage the project. For an effective sales pitch, they could provide a comparison of conventional roofing, which is made of asphalt, and the new one which is metallic.

Case Analysis for American Solar Inc An Innovative Solar Start Up

The metal roofing necessary for solar energy installation has high upfront costs, nearly double than those of conventional roofing, but it also lasts twice as long. So the upfront costs for asphalt roofing are $10 per square foot, and for metal are $20 per square foot, however, while the asphalt roof lasts 15 to 20 years without maintenance, a metal roof can last up to 30 to 40 years. The project requires reroofing which is not as expensive as roofing, and metal roofing has superior weather protection and drainage which again leads to huge savings.

With solar consistent roofing, the hotel chain has the potential to benefit from a government tax credit provided to buildings that are switching over to renewable energy sources. In addition to the cost savings generated from the tax credit and the delayed reroofing expenses, the hotel can also benefit from reduced costs due to increased depreciation.

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