Real Goods
Encyclopedia
Real Goods Solar Inc. is a publicly-traded
residential solar power
installer, having established its roots as a purveyor of sustainable lifestyle products through its retail
division. Real Goods has installed more solar systems than any other U.S. company to date.
The Real Goods Solar Installation division provides integrated PV system
s to residential and commercial customers in California
and Colorado
. It has California offices in Hopland
, Ukiah
, Santa Rosa
, San Rafael
, Campbell
, Santa Cruz
, Fresno
and Murrieta
as well as an office in Boulder, Colorado
.
Through its catalog
, website
, and store in Hopland, Real Goods' retail division sells a range of earth-friendly goods including renewable energy
-generating equipment and lifestyle goods for homes and gardens.
commune
in Mendocino County, California
, and commuted 35 miles (56.3 km) to work each day as a computer operator. Since he drove into town, he became the designated person to pick up supplies for the commune. Frugal by nature, Schaeffer found himself driving all over Mendocino County to buy needed tools and equipment at the best prices. After an especially frustrating shopping trip, Schaeffer thought how great it would be if there was one “general” store that sold all the “real goods” for off-grid living at fair prices. Within a year, Real Goods was born. In 1978, Schaeffer took $3,000 in savings and a $5,000 loan from his father and opened the first Real Goods store in Willits, California
.
Back on the commune, Schaeffer was tired of squinting to read to his children by kerosene lamp
at night and missing Saturday Night Live
on television. Looking for alternatives, he figured out how to run a light fixture and a television from his car battery
. This branded him a rebel in the ‘neo-Luddite
’ commune until more and more people joined him to watch weekly broadcasts of Saturday Night Live.
One day, a man from Los Angeles
arrived at the Real Goods store in Willits, California with a Porsche
full of solar panels. First developed at Bell Laboratories in the 1950s and used in the 1960s in the NASA
space program, solar panels had yet to find commercial applications. On a whim John bought 100 of these novel 9-Watt panels for $600 apiece. He quickly sold them for $900 each to the many off-grid hippie
s and marijuana growers
in Mendocino County
who wanted to enjoy light fixtures, TV and a few of mainstream civilization’s other creature comforts without doing business with utilities
. These sales made Real Goods the first company to sell a solar panel commercially in the United States. Real Goods' store also sold other alternative energy products, gardening supplies, chicken wire
and wood stoves, clothing and books. The success of the Willits store prompted Schaeffer to open an additional store in Ukiah, California, in 1980 and a third store in Santa Rosa, California
in 1982. That same year, Real Goods published the first edition of The Solar Living Source Book, which was written as a comprehensive source for sustainable living
principles and practices. By 1985, Real Goods' annual sales were $3 million.
Growth was erratic, and by 1985 all three retail stores had closed, leaving only the mail order business. In 1985, Schaeffer sold his share of Real Goods to his partner and moved to Bali
, Indonesia
, to retire, but returned to California six months later when the company went bankrupt. He invested his last $3,000 in a 16-page catalog and started a mail order business out of his garage, sending catalogs to the 2,000-name mailing list the company had accumulated. Customers returned and the company was revived.
and the Persian Gulf War
, and Real Goods took advantage of it. That year, the company also set its Billion Pound Goal to keep one billion pounds of carbon dioxide
out of the atmosphere by 2000, which it completed three years early in 1997.
In 1991, Real Goods held its first direct public stock offering, selling stock directly to its customers, and raised $1 million. The following year Real Goods declared a National Off-The-Grid Day, which soon became the National Tour of Solar Homes, during which the public could see solar-powered living firsthand. Real Goods held its second stock offering in 1993, and in 1994, used those funds to break ground on the Solar Living Center (SLC) in Hopland, California, a place for people to study and experience the principles and practices of sustainable living in action. The same year, Real Goods launched its e-commerce business. In 1995, the SLC hosted the first annual Solfest, a renewable energy and sustainable living festival
that features speakers, artists and musicians as well as hands-on workshops and exhibits. The following year brought the official opening of the SLC, and, in 1998, Schaeffer formed the Solar Living Institute (SLI), a nonprofit organization whose mission is to promote sustainable living through inspirational environmental education
. The SLI offers classes and workshops and manages the 12 acres (48,562.3 m²) SLC.
During the 1990s Real Goods received several accolades and awards. The company made Inc.
magazine’s Top 500 Fastest Growing Companies list and John Schaeffer was the Small Business Administration
’s “Small Business Person of the Year” in 1994. The company received three Rodale Awards, as well as news coverage in The Wall Street Journal
, Fortune
, Time
and numerous other publications.
, Berkeley
and West Los Angeles, California. The company’s catalog and e-commerce businesses grew as well, and Real Goods increased its annual revenues to $19 million.
In 2001, Real Goods merged with the sustainable lifestyle company Gaiam Inc.
in a stock swap worth $8.7 million. Per the merger agreement, Real Goods shareholders received one share of Class A GAIA common stock
for each 10 shares of Real Goods stock owned. Gaiam consolidated order processing and distribution in Cincinnati and accounting responsibilities in Broomfield, Colorado
, and implemented a new supply chain management
information system.
With the influx of additional capital
and the power of Gaiam behind it, Real Goods looked for a promising growth opportunity and found it in the residential solar installation market. Since Real Goods was now headquartered in Colorado
yet maintained the SLC, SLI and offices in California, and since the federal government and both states offered attractive tax incentives for installing solar systems, Real Goods opened its residential solar system installation division in both states in 2002. The commercial solar business was also growing, and Real Goods launched its commercial solar installation division in 2004.
as Real Goods Solar and raised $55 million. Real Goods Solar began trading on the NASDAQ
under the symbol RSOL. Through holding 100 percent of Real Goods’ Class B shares, Gaiam maintained control of Real Goods.
-based Marin Solar for $3.2 million in cash and stock. In a similar deal inked in January 2008, RSOL purchased Carlson Solar, headquartered in Hemet, California
for $3.2 million in cash and stock. In August 2008, Real Goods Solar completed its third acquisition — Santa Cruz, California
-based Independent Energy Systems for $3.6 million. In October 2008, RSOL completed its fourth acquisition in less than a year by acquiring Regrid Power of Campbell, California
in a deal valued at $3.8 million in cash and stock. During the first decade of the 21st century, both the commercial and residential sides of the solar installation business were growing at about 30 percent per year. With the acquisition of Marin Solar, Real Goods added the commercial experience and expertise necessary to position itself as a major competitor in the commercial solar installation market.
on Earth, thereby contributing to a healthier future for people and the planet. The company’s mission is to realize its vision through providing the best in earth-friendly products, sustainable living
education and leading-edge renewable energy
solutions.
, as well as Hopland, Ukiah, Santa Rosa, San Rafael, Campbell, Santa Cruz, Fresno and Murrieta, California. By 2010, RSOL had installed its 6,000th residential solar system, enabled more than 100,000 homes to go off-grid worldwide, and installed more than 10 megawatts of solar power on commercial projects ranging from high schools and office buildings to wineries
, and a distribution center in West Chester, Ohio
. Through its catalog and e-commerce distribution channels, Real Goods offers a range of items for on- and off-grid living, including gardening, pond and composting supplies, camping gear, organic bedding, non-toxic cleaning and laundry
solutions, air and water purifiers, appliances and renewable energy systems for solar, wind, hydro and solar hot water.
In 1996 Real Goods opened its flagship retail store in Hopland, California, the company's fifth retail location. In the early 2000s, Real Goods refocused on its national mail order and local solar installation businesses and closed all of its physical stores except for the Hopland store. Housed in a strawbale building
utilizing passive solar design
principles, the store is lighted and heated by an onsite solar system and by south-facing windows that capture the sun’s heat.
s on 100 percent post-consumer
content recycled paper, the Solar Living Source Book is a comprehensive reference for the layperson on renewable energy technologies and sustainable living. There are more than 600,000 copies in print in 44 English-speaking countries.
and green living experiential classroom and as an example of successful sustainable development
. Throughout each year the SLI hosts between 50 and 75 hands-on workshops on everything from photovoltaic system
design and installation and strawbale home construction
to beekeeping
, green career seminars and its Earth Day for Kids programs that introduces inner-city kids to renewable energy and environmental responsibility. The SLI also runs a year-round internship program that offers interns in-depth, hands-on training in renewable energy systems, sustainable building, community gardening
and more. In 2009, the SLI began teaching classes online and in 2010, the nonprofit launched an online solar-energy training program. The SLI had taught more than 1,000 workshops to nearly 10,000 students.
The SLI is headquartered at the Solar Living Center (SLC), a 5000 square feet (464.5 m²) strawbale building surrounded by 12 acres (48,562.3 m²) of permaculture
gardens in Hopland, California. The building was designed using passive solar principles and requires little additional heat or light, and the gardens are laid out in a pattern similar to that of U.S. climate zones. In 2000, Real Goods installed a commercial solar system at the SLC that produces 160,000 kW-hours of electricity annually — one of the largest solar installations in northern California. Opened in 1996, the SLC serves as a “place in the sun” for everyone interested in sustainable living
from customers to shareholders to see the products and practices of this lifestyle in action. Approximately 200,000 people visit the SLC each year. The SLC also hosts the annual Solfest celebration, a two-day renewable energy and sustainable living fair and fundraiser for the SLI that includes workshops, demonstrations, educational panels, keynote speakers, music, artists, wine tasting
and dancing.
, Real Goods set a goal to keep one billion pounds of carbon dioxide
(CO2) out of the atmosphere within 10 years through customer purchases of products that reduce CO2 production. Calculations of CO2 reduction on a product-by-product basis were based on a formula developed by the Union of Concerned Scientists
. In addition, Real Goods changed its energy usage, shipping and other corporate practices to become more environmentally friendly. The company tracked its progress through regular updates in the Real Goods catalog. In 1997, that goal was achieved three years ahead of schedule. In 2005, Real Goods and Gaiam set another goal to eliminate one billion pounds of CO2 from the atmosphere by 2010. In 2008, that goal was achieved two years early.
certification. From 2008 to 2010 Real Goods lowered its paper and printing impact another 75 percent by reducing paper weight, catalog trim size and reducing the number of catalogs mailed by driving more business to the internet. Real Goods customers are asked to reduce the number of catalogs they request, and catalogs are mailed based on past purchase activity. Customers are also encouraged to shop at Real Goods’ website as exemplified by the “Don’t Buy From This Catalog” campaign the company ran in its Spring/Summer 2010 and Fall/Holiday 2010 catalogs.
to introduce the world’s first carbon-neutral product shipping program called Go Zero. Gaiam Real Goods made a contribution that allowed Go Zero to plant nearly 1,500 trees, which offset the company’s operations at its headquarters and fulfillment center for that year. Shortly after, Real Goods began an ongoing program where customers can add $2 to their order to have a tree planted and thereby zero out the carbon impact of shipping the order. Real Goods also reuses shipping containers and purchases 100 percent recyclable and biodegradable packaging made from 100 percent post-consumer waste printed with soy ink
s.
In 2008, Real Goods — with Gaiam as its majority shareholder — moved into new corporate offices and went solar with a 100 kW solar system, installed by Real Goods, that provides approximately 20 percent of the company’s energy requirements. In addition, the new headquarters feature low-VOC
paints, bamboo floor
ing and cabinetry, earth-friendly carpet and glue, and recycled office cubicles. In 2008, Real Goods also added compost
ing collection to its comprehensive office recycling program, and some company parties are now zero-waste events.
Public company
This is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...
residential solar power
Solar power
Solar energy, radiant light and heat from the sun, has been harnessed by humans since ancient times using a range of ever-evolving technologies. Solar radiation, along with secondary solar-powered resources such as wind and wave power, hydroelectricity and biomass, account for most of the available...
installer, having established its roots as a purveyor of sustainable lifestyle products through its retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
division. Real Goods has installed more solar systems than any other U.S. company to date.
The Real Goods Solar Installation division provides integrated PV system
Photovoltaic system
A photovoltaic system is a system which uses one or more solar panels to convert sunlight into electricity. It consists of multiple components, including the photovoltaic modules, mechanical and electrical connections and mountings and means of regulating and/or modifying the electrical...
s to residential and commercial customers in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
and Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
. It has California offices in Hopland
Hopland, California
Hopland is a census-designated place in Mendocino County, California. It is located on the west bank of the Russian River south-southeast of Ukiah, at an elevation of 502 feet . The population was 756 at the 2010 census....
, Ukiah
Ukiah, California
The average high temperature is 73.5 °F . Average low temperature is 46.1 °F . Temperatures reach 90 °F on an average of 65.6 days annually and 100 °F on an average of 14.4 days annually. Due to frequent low humidity, summer temperatures normally drop into the fifties at night. Freezing...
, Santa Rosa
Santa Rosa, California
Santa Rosa is the county seat of Sonoma County, California, United States. The 2010 census reported a population of 167,815. Santa Rosa is the largest city in California's Wine Country and fifth largest city in the San Francisco Bay Area, after San Jose, San Francisco, Oakland, and Fremont and 26th...
, San Rafael
San Rafael, California
San Rafael is a city and the county seat of Marin County, California, United States. The city is located in the North Bay region of the San Francisco Bay Area...
, Campbell
Campbell, California
Campbell is a city in Santa Clara County, California, a suburb of San Jose, and part of Silicon Valley, in the San Francisco Bay Area. As of the 2010 U.S. Census, Campbell's population is 39,349...
, Santa Cruz
Santa Cruz, California
Santa Cruz is the county seat and largest city of Santa Cruz County, California in the US. As of the 2010 U.S. Census, Santa Cruz had a total population of 59,946...
, Fresno
Fresno, California
Fresno is a city in central California, United States, the county seat of Fresno County. As of the 2010 census, the city's population was 510,365, making it the fifth largest city in California, the largest inland city in California, and the 34th largest in the nation...
and Murrieta
Murrieta, California
Murrieta has a Mediterranean climate or Dry-Summer Subtropical . Murrieta has plenty of sunshine throughout the year, with an average of 263 sunshine days and 35 days with measurable precipitation annually....
as well as an office in Boulder, Colorado
Boulder, Colorado
Boulder is the county seat and most populous city of Boulder County and the 11th most populous city in the U.S. state of Colorado. Boulder is located at the base of the foothills of the Rocky Mountains at an elevation of...
.
Through its catalog
Catalog
Catalog or catalogue may refer to:In science and technology:*Astronomical catalog, a catalog of astronomical objects**Star catalog, a catalog of stars*Pharmacopoeia, a book containing directions for the preparation of compound medicines...
, website
Website
A website, also written as Web site, web site, or simply site, is a collection of related web pages containing images, videos or other digital assets. A website is hosted on at least one web server, accessible via a network such as the Internet or a private local area network through an Internet...
, and store in Hopland, Real Goods' retail division sells a range of earth-friendly goods including renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
-generating equipment and lifestyle goods for homes and gardens.
Early Years
In 1977, 29 year-old John Schaeffer lived on an off-gridOff-the-grid
The term off-the-grid or off-grid refers to living in a self-sufficient manner without reliance on one or more public utilities....
commune
Commune
Commune may refer to:In society:* Commune, a human community in which resources are shared* Commune , a township or municipality* One of the Communes of France* An Italian Comune...
in Mendocino County, California
Mendocino County, California
Mendocino County is a county located on the north coast of the U.S. state of California, north of the greater San Francisco Bay Area and west of the Central Valley. As of the 2010 census, the population was 87,841, up from 86,265 at the 2000 census...
, and commuted 35 miles (56.3 km) to work each day as a computer operator. Since he drove into town, he became the designated person to pick up supplies for the commune. Frugal by nature, Schaeffer found himself driving all over Mendocino County to buy needed tools and equipment at the best prices. After an especially frustrating shopping trip, Schaeffer thought how great it would be if there was one “general” store that sold all the “real goods” for off-grid living at fair prices. Within a year, Real Goods was born. In 1978, Schaeffer took $3,000 in savings and a $5,000 loan from his father and opened the first Real Goods store in Willits, California
Willits, California
Willits is a city in Mendocino County, California, United States. Willits is located north-northwest of Ukiah, at an elevation of 1391 feet . The population was 4,888 at the 2010 census, down from 5,073 at the 2000 census. Willits is at the center of Mendocino County and its redwood forests...
.
Back on the commune, Schaeffer was tired of squinting to read to his children by kerosene lamp
Kerosene lamp
The kerosene lamp is a type of lighting device that uses kerosene as a fuel. This article refers to kerosene lamps that have a wick and a tall glass chimney. Kerosene lanterns that have a wick and a glass globe are related to kerosene lamps and are included here as well...
at night and missing Saturday Night Live
Saturday Night Live
Saturday Night Live is a live American late-night television sketch comedy and variety show developed by Lorne Michaels and Dick Ebersol. The show premiered on NBC on October 11, 1975, under the original title of NBC's Saturday Night.The show's sketches often parody contemporary American culture...
on television. Looking for alternatives, he figured out how to run a light fixture and a television from his car battery
Car battery
An automotive battery is a type of rechargeable battery that supplies electric energy to an automobile. Usually this refers to an SLI battery to power the starter motor, the lights, and the ignition system of a vehicle’s engine...
. This branded him a rebel in the ‘neo-Luddite
Neo-luddism
Neo-Luddism is a personal world view opposing any modern technology. Its name is based on the historical legacy of the British Luddites which were active between 1811 and 1816...
’ commune until more and more people joined him to watch weekly broadcasts of Saturday Night Live.
One day, a man from Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
arrived at the Real Goods store in Willits, California with a Porsche
Porsche
Porsche Automobil Holding SE, usually shortened to Porsche SE a Societas Europaea or European Public Company, is a German based holding company with investments in the automotive industry....
full of solar panels. First developed at Bell Laboratories in the 1950s and used in the 1960s in the NASA
NASA
The National Aeronautics and Space Administration is the agency of the United States government that is responsible for the nation's civilian space program and for aeronautics and aerospace research...
space program, solar panels had yet to find commercial applications. On a whim John bought 100 of these novel 9-Watt panels for $600 apiece. He quickly sold them for $900 each to the many off-grid hippie
Hippie
The hippie subculture was originally a youth movement that arose in the United States during the mid-1960s and spread to other countries around the world. The etymology of the term 'hippie' is from hipster, and was initially used to describe beatniks who had moved into San Francisco's...
s and marijuana growers
Cannabis cultivation
This article presents common techniques and facts regarding the cultivation of the flowering plant cannabis, primarily for the production and consumption of marijuana buds. Cultivation techniques for other purposes differ...
in Mendocino County
Mendocino County, California
Mendocino County is a county located on the north coast of the U.S. state of California, north of the greater San Francisco Bay Area and west of the Central Valley. As of the 2010 census, the population was 87,841, up from 86,265 at the 2000 census...
who wanted to enjoy light fixtures, TV and a few of mainstream civilization’s other creature comforts without doing business with utilities
Electric utility
An electric utility is a company that engages in the generation, transmission, and distribution of electricity for sale generally in a regulated market. The electrical utility industry is a major provider of energy in most countries. It is indispensable to factories, commercial establishments,...
. These sales made Real Goods the first company to sell a solar panel commercially in the United States. Real Goods' store also sold other alternative energy products, gardening supplies, chicken wire
Chicken wire
Chicken wire, or poultry netting, is a mesh of wire commonly used to fence poultry livestock. It is made of thin, flexible galvanized wire, with hexagonal gaps...
and wood stoves, clothing and books. The success of the Willits store prompted Schaeffer to open an additional store in Ukiah, California, in 1980 and a third store in Santa Rosa, California
Santa Rosa, California
Santa Rosa is the county seat of Sonoma County, California, United States. The 2010 census reported a population of 167,815. Santa Rosa is the largest city in California's Wine Country and fifth largest city in the San Francisco Bay Area, after San Jose, San Francisco, Oakland, and Fremont and 26th...
in 1982. That same year, Real Goods published the first edition of The Solar Living Source Book, which was written as a comprehensive source for sustainable living
Sustainable living
Sustainable living is a lifestyle that attempts to reduce an individual's or society's use of the Earth's natural resources and his/her own resources. Practitioners of sustainable living often attempt to reduce their carbon footprint by altering methods of transportation, energy consumption and diet...
principles and practices. By 1985, Real Goods' annual sales were $3 million.
Growth was erratic, and by 1985 all three retail stores had closed, leaving only the mail order business. In 1985, Schaeffer sold his share of Real Goods to his partner and moved to Bali
Bali
Bali is an Indonesian island located in the westernmost end of the Lesser Sunda Islands, lying between Java to the west and Lombok to the east...
, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, to retire, but returned to California six months later when the company went bankrupt. He invested his last $3,000 in a 16-page catalog and started a mail order business out of his garage, sending catalogs to the 2,000-name mailing list the company had accumulated. Customers returned and the company was revived.
The 1990s
During the 1990s, Real Goods expanded its business by presenting a clear message about the benefits of solar energy. In 1990, the entire solar industry received a boost from the 20th anniversary of Earth DayEarth Day
Earth Day is a day that is intended to inspire awareness and appreciation for the Earth's natural environment. The name and concept of Earth Day was allegedly pioneered by John McConnell in 1969 at a UNESCO Conference in San Francisco. The first Proclamation of Earth Day was by San Francisco, the...
and the Persian Gulf War
Gulf War
The Persian Gulf War , commonly referred to as simply the Gulf War, was a war waged by a U.N.-authorized coalition force from 34 nations led by the United States, against Iraq in response to Iraq's invasion and annexation of Kuwait.The war is also known under other names, such as the First Gulf...
, and Real Goods took advantage of it. That year, the company also set its Billion Pound Goal to keep one billion pounds of carbon dioxide
Carbon dioxide
Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...
out of the atmosphere by 2000, which it completed three years early in 1997.
In 1991, Real Goods held its first direct public stock offering, selling stock directly to its customers, and raised $1 million. The following year Real Goods declared a National Off-The-Grid Day, which soon became the National Tour of Solar Homes, during which the public could see solar-powered living firsthand. Real Goods held its second stock offering in 1993, and in 1994, used those funds to break ground on the Solar Living Center (SLC) in Hopland, California, a place for people to study and experience the principles and practices of sustainable living in action. The same year, Real Goods launched its e-commerce business. In 1995, the SLC hosted the first annual Solfest, a renewable energy and sustainable living festival
Festival
A festival or gala is an event, usually and ordinarily staged by a local community, which centers on and celebrates some unique aspect of that community and the Festival....
that features speakers, artists and musicians as well as hands-on workshops and exhibits. The following year brought the official opening of the SLC, and, in 1998, Schaeffer formed the Solar Living Institute (SLI), a nonprofit organization whose mission is to promote sustainable living through inspirational environmental education
Environmental education
Environmental education refers to organized efforts to teach about how natural environments function and, particularly, how human beings can manage their behavior and ecosystems in order to live sustainably. The term is often used to imply education within the school system, from primary to...
. The SLI offers classes and workshops and manages the 12 acres (48,562.3 m²) SLC.
During the 1990s Real Goods received several accolades and awards. The company made Inc.
Inc. (magazine)
Inc. magazine, founded in 1979 and based in New York City, is a monthly publication focused on growing companies. The magazine publishes an annual list of the 500 fastest-growing private companies in the U.S., the "Inc...
magazine’s Top 500 Fastest Growing Companies list and John Schaeffer was the Small Business Administration
Small Business Administration
The Small Business Administration is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses...
’s “Small Business Person of the Year” in 1994. The company received three Rodale Awards, as well as news coverage in The Wall Street Journal
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
, Fortune
Fortune (magazine)
Fortune is a global business magazine published by Time Inc. Founded by Henry Luce in 1930, the publishing business, consisting of Time, Life, Fortune, and Sports Illustrated, grew to become Time Warner. In turn, AOL grew as it acquired Time Warner in 2000 when Time Warner was the world's largest...
, Time
Time (magazine)
Time is an American news magazine. A European edition is published from London. Time Europe covers the Middle East, Africa and, since 2003, Latin America. An Asian edition is based in Hong Kong...
and numerous other publications.
Expansion and partnership with Gaiam
Real Goods grew significantly in the first decade of the 21st century. By this time, the company had five brick and mortar stores located in Hopland, Santa Rosa, Los GatosLos Gatos, California
The Town of Los Gatos is an incorporated town in Santa Clara County, California, United States. The population was 29,413 at the 2010 census. It is located in the San Francisco Bay Area at the southwest corner of San Jose in the foothills of the Santa Cruz Mountains...
, Berkeley
Berkeley, California
Berkeley is a city on the east shore of the San Francisco Bay in Northern California, United States. Its neighbors to the south are the cities of Oakland and Emeryville. To the north is the city of Albany and the unincorporated community of Kensington...
and West Los Angeles, California. The company’s catalog and e-commerce businesses grew as well, and Real Goods increased its annual revenues to $19 million.
In 2001, Real Goods merged with the sustainable lifestyle company Gaiam Inc.
Gaiam
Gaiam is a "lifestyle company" that sells products catered toward healthy and sustainable living.Gaiam is probably best known for fitness media, such as its award-winning yoga routine videos taught by well-known instructors such as Rodney Yee....
in a stock swap worth $8.7 million. Per the merger agreement, Real Goods shareholders received one share of Class A GAIA common stock
Common stock
Common stock is a form of corporate equity ownership, a type of security. It is called "common" to distinguish it from preferred stock. In the event of bankruptcy, common stock investors receive their funds after preferred stock holders, bondholders, creditors, etc...
for each 10 shares of Real Goods stock owned. Gaiam consolidated order processing and distribution in Cincinnati and accounting responsibilities in Broomfield, Colorado
Broomfield, Colorado
The City and County of Broomfield is a prominent suburb and tier of the Denver metropolitan area in the State of Colorado of the United States. Broomfield has a consolidated city and county government which operates under Article XX, Sections 10-13 of the Constitution of the State of Colorado. The...
, and implemented a new supply chain management
Supply chain management
Supply chain management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers...
information system.
With the influx of additional capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...
and the power of Gaiam behind it, Real Goods looked for a promising growth opportunity and found it in the residential solar installation market. Since Real Goods was now headquartered in Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
yet maintained the SLC, SLI and offices in California, and since the federal government and both states offered attractive tax incentives for installing solar systems, Real Goods opened its residential solar system installation division in both states in 2002. The commercial solar business was also growing, and Real Goods launched its commercial solar installation division in 2004.
Initial Public Offering
For his work in the renewable energy field, John Schaeffer received the 2007 Green Power Pioneer Award. In 2008, Real Goods positioned itself for aggressive growth by separating its mail order division from Gaiam, re-launching the Real Goods website as a stand-alone e-commerce channel, expanding its solar division and going public. On May 8, 2008, Real Goods completed an initial public offeringInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
as Real Goods Solar and raised $55 million. Real Goods Solar began trading on the NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
under the symbol RSOL. Through holding 100 percent of Real Goods’ Class B shares, Gaiam maintained control of Real Goods.
Solar installation expansion
Between 2007 and 2008 Real Goods acquired four solar installation companies in California and became one of the nation’s largest solar installers. In November 2007, Real Goods Solar acquired San Rafael, CaliforniaSan Rafael, California
San Rafael is a city and the county seat of Marin County, California, United States. The city is located in the North Bay region of the San Francisco Bay Area...
-based Marin Solar for $3.2 million in cash and stock. In a similar deal inked in January 2008, RSOL purchased Carlson Solar, headquartered in Hemet, California
Hemet, California
Hemet is a city in the San Jacinto Valley in Riverside County, California, United States. It covers a total area of , about half of the valley, which it shares with the neighboring city of San Jacinto. The population was 78,657 at the 2010 census....
for $3.2 million in cash and stock. In August 2008, Real Goods Solar completed its third acquisition — Santa Cruz, California
Santa Cruz, California
Santa Cruz is the county seat and largest city of Santa Cruz County, California in the US. As of the 2010 U.S. Census, Santa Cruz had a total population of 59,946...
-based Independent Energy Systems for $3.6 million. In October 2008, RSOL completed its fourth acquisition in less than a year by acquiring Regrid Power of Campbell, California
Campbell, California
Campbell is a city in Santa Clara County, California, a suburb of San Jose, and part of Silicon Valley, in the San Francisco Bay Area. As of the 2010 U.S. Census, Campbell's population is 39,349...
in a deal valued at $3.8 million in cash and stock. During the first decade of the 21st century, both the commercial and residential sides of the solar installation business were growing at about 30 percent per year. With the acquisition of Marin Solar, Real Goods added the commercial experience and expertise necessary to position itself as a major competitor in the commercial solar installation market.
Mission and vision
Real Goods’ vision is to lower humankind’s ecological footprintEcological footprint
The ecological footprint is a measure of human demand on the Earth's ecosystems. It is a standardized measure of demand for natural capital that may be contrasted with the planet's ecological capacity to regenerate. It represents the amount of biologically productive land and sea area necessary to...
on Earth, thereby contributing to a healthier future for people and the planet. The company’s mission is to realize its vision through providing the best in earth-friendly products, sustainable living
Sustainable living
Sustainable living is a lifestyle that attempts to reduce an individual's or society's use of the Earth's natural resources and his/her own resources. Practitioners of sustainable living often attempt to reduce their carbon footprint by altering methods of transportation, energy consumption and diet...
education and leading-edge renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
solutions.
Real Goods Solar Division
Today, Real Goods Solar maintains offices in Denver, ColoradoDenver, Colorado
The City and County of Denver is the capital and the most populous city of the U.S. state of Colorado. Denver is a consolidated city-county, located in the South Platte River Valley on the western edge of the High Plains just east of the Front Range of the Rocky Mountains...
, as well as Hopland, Ukiah, Santa Rosa, San Rafael, Campbell, Santa Cruz, Fresno and Murrieta, California. By 2010, RSOL had installed its 6,000th residential solar system, enabled more than 100,000 homes to go off-grid worldwide, and installed more than 10 megawatts of solar power on commercial projects ranging from high schools and office buildings to wineries
Real Goods Retail Division
Real Goods' retail division has headquarters in Boulder, ColoradoBoulder, Colorado
Boulder is the county seat and most populous city of Boulder County and the 11th most populous city in the U.S. state of Colorado. Boulder is located at the base of the foothills of the Rocky Mountains at an elevation of...
, and a distribution center in West Chester, Ohio
West Chester Township, Butler County, Ohio
West Chester Township, formerly known as Union Township, is a township located in the southeast corner of Butler County in the southwestern part of the U.S. state of Ohio, one of thirteen townships in the county. It is situated between Sharonville and Monroe, about 18 miles north of Cincinnati, and...
. Through its catalog and e-commerce distribution channels, Real Goods offers a range of items for on- and off-grid living, including gardening, pond and composting supplies, camping gear, organic bedding, non-toxic cleaning and laundry
Laundry
Laundry is a noun that refers to the act of washing clothing and linens, the place where that washing is done, and/or that which needs to be, is being, or has been laundered...
solutions, air and water purifiers, appliances and renewable energy systems for solar, wind, hydro and solar hot water.
In 1996 Real Goods opened its flagship retail store in Hopland, California, the company's fifth retail location. In the early 2000s, Real Goods refocused on its national mail order and local solar installation businesses and closed all of its physical stores except for the Hopland store. Housed in a strawbale building
Straw-bale construction
Straw-bale construction is a building method that uses bales of straw as structural elements, building insulation, or both...
utilizing passive solar design
Passive solar building design
In passive solar building design, windows, walls, and floors are made to collect, store, and distribute solar energy in the form of heat in the winter and reject solar heat in the summer...
principles, the store is lighted and heated by an onsite solar system and by south-facing windows that capture the sun’s heat.
Solar Living Source Book
Real Goods published its first edition of The Solar Living Source Book in 1982. It was written as a one-stop information source for renewable energy and sustainable living. Now in its 30th anniversary (13th) edition, and printed using soy inkSoy ink
Soy ink is a kind of ink made from soybeans. As opposed to traditional petroleum-based ink, soy-based ink is more environmentally friendly, might provide more accurate colors, and makes it easier to recycle paper...
s on 100 percent post-consumer
Post-consumer waste
Post-consumer waste is a waste type produced by the end consumer of a material stream; that is, where the waste-producing use did not involve the production of another product....
content recycled paper, the Solar Living Source Book is a comprehensive reference for the layperson on renewable energy technologies and sustainable living. There are more than 600,000 copies in print in 44 English-speaking countries.
Solar Living Institute
In 1998, John Schaeffer founded a 501(c)(3) nonprofit education institute called the Solar Living Institute (SLI) with the mission of promoting sustainable living through inspirational environmental education. The result is an organization that functions both as a renewable energyRenewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
and green living experiential classroom and as an example of successful sustainable development
Sustainable development
Sustainable development is a pattern of resource use, that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for generations to come...
. Throughout each year the SLI hosts between 50 and 75 hands-on workshops on everything from photovoltaic system
Photovoltaic system
A photovoltaic system is a system which uses one or more solar panels to convert sunlight into electricity. It consists of multiple components, including the photovoltaic modules, mechanical and electrical connections and mountings and means of regulating and/or modifying the electrical...
design and installation and strawbale home construction
Straw-bale construction
Straw-bale construction is a building method that uses bales of straw as structural elements, building insulation, or both...
to beekeeping
Beekeeping
Beekeeping is the maintenance of honey bee colonies, commonly in hives, by humans. A beekeeper keeps bees in order to collect honey and other products of the hive , to pollinate crops, or to produce bees for sale to other beekeepers...
, green career seminars and its Earth Day for Kids programs that introduces inner-city kids to renewable energy and environmental responsibility. The SLI also runs a year-round internship program that offers interns in-depth, hands-on training in renewable energy systems, sustainable building, community gardening
Community gardening
A community garden is a single piece of land gardened collectively by a group of people.-Purpose:Community gardens provide fresh produce and plants as well as satisfying labor, neighborhood improvement, sense of community and connection to the environment...
and more. In 2009, the SLI began teaching classes online and in 2010, the nonprofit launched an online solar-energy training program. The SLI had taught more than 1,000 workshops to nearly 10,000 students.
The SLI is headquartered at the Solar Living Center (SLC), a 5000 square feet (464.5 m²) strawbale building surrounded by 12 acres (48,562.3 m²) of permaculture
Permaculture
Permaculture is an approach to designing human settlements and agricultural systems that is modeled on the relationships found in nature. It is based on the ecology of how things interrelate rather than on the strictly biological concerns that form the foundation of modern agriculture...
gardens in Hopland, California. The building was designed using passive solar principles and requires little additional heat or light, and the gardens are laid out in a pattern similar to that of U.S. climate zones. In 2000, Real Goods installed a commercial solar system at the SLC that produces 160,000 kW-hours of electricity annually — one of the largest solar installations in northern California. Opened in 1996, the SLC serves as a “place in the sun” for everyone interested in sustainable living
Sustainable living
Sustainable living is a lifestyle that attempts to reduce an individual's or society's use of the Earth's natural resources and his/her own resources. Practitioners of sustainable living often attempt to reduce their carbon footprint by altering methods of transportation, energy consumption and diet...
from customers to shareholders to see the products and practices of this lifestyle in action. Approximately 200,000 people visit the SLC each year. The SLC also hosts the annual Solfest celebration, a two-day renewable energy and sustainable living fair and fundraiser for the SLI that includes workshops, demonstrations, educational panels, keynote speakers, music, artists, wine tasting
Wine tasting
Wine tasting is the sensory examination and evaluation of wine. While the practice of wine tasting is as ancient as its production, a more formalized methodology has slowly become established from the 14th century onwards...
and dancing.
Billion Pound Goal
In 1990, based on concerns about global warmingGlobal warming
Global warming refers to the rising average temperature of Earth's atmosphere and oceans and its projected continuation. In the last 100 years, Earth's average surface temperature increased by about with about two thirds of the increase occurring over just the last three decades...
, Real Goods set a goal to keep one billion pounds of carbon dioxide
Carbon dioxide
Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...
(CO2) out of the atmosphere within 10 years through customer purchases of products that reduce CO2 production. Calculations of CO2 reduction on a product-by-product basis were based on a formula developed by the Union of Concerned Scientists
Union of Concerned Scientists
The Union of Concerned Scientists is a nonprofit science advocacy group based in the United States. The UCS membership includes many private citizens in addition to professional scientists. James J...
. In addition, Real Goods changed its energy usage, shipping and other corporate practices to become more environmentally friendly. The company tracked its progress through regular updates in the Real Goods catalog. In 1997, that goal was achieved three years ahead of schedule. In 2005, Real Goods and Gaiam set another goal to eliminate one billion pounds of CO2 from the atmosphere by 2010. In 2008, that goal was achieved two years early.
Paper reduction/packaging
In 2007, Real Goods increased the post-consumer recycled paper content for its catalogs from 20 percent to 30 percent. This earned the company Forest Stewardship CouncilForest Stewardship Council
The Forest Stewardship Council is an international not-for-profit, multi-stakeholder organization established in 1993 to promote responsible management of the world’s forests. Its main tools for achieving this are standard setting, independent certification and labeling of forest products...
certification. From 2008 to 2010 Real Goods lowered its paper and printing impact another 75 percent by reducing paper weight, catalog trim size and reducing the number of catalogs mailed by driving more business to the internet. Real Goods customers are asked to reduce the number of catalogs they request, and catalogs are mailed based on past purchase activity. Customers are also encouraged to shop at Real Goods’ website as exemplified by the “Don’t Buy From This Catalog” campaign the company ran in its Spring/Summer 2010 and Fall/Holiday 2010 catalogs.
Go Zero
In 2006, Real Goods and Gaiam partnered with The Conservation FundThe Conservation Fund
The Conservation Fund is an American environmental non-profit with a dual charter to pursue both economic development and environmental preservation.The Fund partners with community, government and corporate leaders to fulfill their conservation priorities...
to introduce the world’s first carbon-neutral product shipping program called Go Zero. Gaiam Real Goods made a contribution that allowed Go Zero to plant nearly 1,500 trees, which offset the company’s operations at its headquarters and fulfillment center for that year. Shortly after, Real Goods began an ongoing program where customers can add $2 to their order to have a tree planted and thereby zero out the carbon impact of shipping the order. Real Goods also reuses shipping containers and purchases 100 percent recyclable and biodegradable packaging made from 100 percent post-consumer waste printed with soy ink
Soy ink
Soy ink is a kind of ink made from soybeans. As opposed to traditional petroleum-based ink, soy-based ink is more environmentally friendly, might provide more accurate colors, and makes it easier to recycle paper...
s.
In 2008, Real Goods — with Gaiam as its majority shareholder — moved into new corporate offices and went solar with a 100 kW solar system, installed by Real Goods, that provides approximately 20 percent of the company’s energy requirements. In addition, the new headquarters feature low-VOC
Volatile organic compound
Volatile organic compounds are organic chemicals that have a high vapor pressure at ordinary, room-temperature conditions. Their high vapor pressure results from a low boiling point, which causes large numbers of molecules to evaporate or sublimate from the liquid or solid form of the compound and...
paints, bamboo floor
Bamboo floor
Bamboo floors are manufactured from the bamboo plant. The majority of today's bamboo flooring products originate in China and other portions of Asia. The species of bamboo used for flooring is commonly known as "Moso".- Characteristics :...
ing and cabinetry, earth-friendly carpet and glue, and recycled office cubicles. In 2008, Real Goods also added compost
Compost
Compost is organic matter that has been decomposed and recycled as a fertilizer and soil amendment. Compost is a key ingredient in organic farming. At its most essential, the process of composting requires simply piling up waste outdoors and waiting for the materials to break down from anywhere...
ing collection to its comprehensive office recycling program, and some company parties are now zero-waste events.