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Bethesda gets new green eco co-op with Maryland Energy and Sustainability Cooperative

Washington Business Journal - by Vandana Sinha Staff Reporter

A Bethesda businessman is starting an eco-friendly cooperative that is asking for a sizable buy-in from its maiden members.

Mike Kennedy, a former residential real estate developer who’s dubbed himself the “energetic director” of his soon-to-launch

Maryland Energy and Sustainability Cooperative, is banking on green-minded and well-heeled residents to back the group.

Before an official launch Jan. 14, his Bethesda co-op had 26 resident members and 14 local providers, including ones specializing in energy audits, weatherization, geothermal energy and solar water heating.

Each member and provider must pay a $500 membership fee and then annual dues of up to $35. In return, members can receive 10 to 15 percent discounts on energy-saving products that often sport price tags in the thousands of dollars, while providers get a new advertising channel. Ultimately, the co-op’s backers also get a share of any profits.

"We're creating a value proposistion that makes it worthwhile," said Kennedy, who hopes to get up to 4,550 members and $2.5 million in capital by 2015.

The co-op's premis places it in a similar category as Live Green, a D.C. environmentally focused membership group whose green company partners stretch beyond residential energy efficiency to retail, restaurants, cleaning and car sharing.  Live green's membership requirements are $13 per year.

Live Green has assembeled 2,000 members and 50 providers so far, though it needs to substantially raise those numbers to remain a sustainable enterprise, said Steve Ma, the groups executive director.

  
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LEAVING OIL BEHIND: LOCAL MOVEMENT TOWARD SUSTAINABILITY
Maryland Co-op Creates Economic Incentive to Go Green through Discounts on Eco-friendly Products

Sick of oil spills and energy bills, the public is shifting toward new energy solutions. One of these solutions lies in the Cooperative Movement, which creates opportunities for localization, sustainable community development, and economic resilience. Mike Kennedy, who has been interested in cooperatives and sustainability throughout his life, gave up his job to follow a new path: “After 30 years in the real estate development business in and around Washington DC, I decided to put my business skills to work in the pursuit of my life long passion for environmentalism.” In October of 2009 he launched the product of his vision, the Maryland Energy and Sustainability Cooperative (“the Co-op”), a member-owned organization that uses the collective buying power of the community to empower the local green economy.

 

The Co-op provides Members with discounts on energy-efficient products and services for homes and businesses from pre-qualified local Suppliers. Eco-friendly offerings include energy auditing and weatherization, rain barrels, heating and AC, solar electric and water heating, wind energy, building supplies, real estate, party and paper supplies, credit unions, and green roofs.

 

Mike Kennedy has personally vetted local green businesses to find the best Supplier from each category of eco-friendly consumer needs, which saves Co-op Members the time, money, and frustration involved in finding the right sources. Members receive discounts of between 6% and 10% from all Suppliers. Other Member Benefits include access to online information and resources about going green, as well as a vote in Co-op decisions.

 

The Co-op now offers four types of membership:

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    Individual Membership applies to individuals or families.

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    Supplier Membership applies to all of the Co-op’s green business Suppliers. Suppliers receive all Member benefits as well as Co-op publicity and patronage and must provide discounts of between 6% and 10% to all Members and Sponsors.

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    Organization Membership applies to faith-based communities, associations, building owners, and other cooperatives.

  • Sponsor Membership applies to all employees or members of Organization Members. Sponsors join at a discounted rate.

  
Gazette Article

Gazette.net

Friday, Dec. 18, 2009
Co-op offers a one-stop shop for green businesses
Venture is a career change for Kensington man

by Bradford Pearson | Staff Writer

Mike Kennedy was tired with his career.

A few years ago, the Kensington resident left his real estate development job, and started looking at the growing field of green jobs. He looked into solar installation companies, and even green funerals — which involves dumping a body into the ground and letting Mother Nature take over. The idea of a green cooperative — bringing suppliers and clients under one tent — was where he landed.

"I did some surveying in the area, and found out that people are really interested in going green, that we've reached this tipping point where people understand the cost benefit of it," he said. "It got me thinking."

So, in October, he launched the Maryland Energy and Sustainability Cooperative, a Bethesda-based group that vets green suppliers and contractors, and assembles them so they are more accessible to prospective clients. The idea is simple: individuals join the co-op and pay a $500 fee which in turn allows them to receive discounts at all the vetted suppliers and contractors. Member suppliers include home energy auditors and weatherization experts, geothermal installers and LEED-certified remodelers, and even a green stationary company.

Kennedy spent the last few months trailing all the contractors, making sure they were reliable and did good work.

Since the group launched, 13 companies have signed on, most from MontgomeryCounty. Each company must also pay to be a member, making them a vested partner in the co-op, Kennedy said.

Individual members started signing up two weeks ago and already 23 people have become part of the co-op. They pay the one-time $500 fee and a $35 yearly maintenance cost. When compared to the up to 15 percent discounts they receive at certain businesses, though, Kennedy said the cost is minimal.

"People understand the value of doing these types of things to their homes, because the difference is tangible," he said. "They receive a discount on their costs, then they save money on utility bills."

For Chevy Chase resident Jim Roumell, joining the co-op was a no-brainer. He needed some weatherization work done on his home and the co-op took the legwork out of sorting through dozens of prospective companies.

He eventually hired Chevy Chase-based Live Green, which offered co-op members a 10 percent discount on their home energy audit, saving Roumell nearly $50.

He'll soon have recommended weatherization measures completed as well.

"The payback is going to be four to seven years, and that will probably include the cost of the co-op as well," Roumell said. "It's great. There are virtually no investments where you make back your money in only five years."

The arrangement is beneficial for the suppliers and contractors as well, they said. John Spear, president of Green Home Pro, a Gaithersburg design company that focuses on geothermal sales and installation, said not only does the co-op provide leads and a built-in customer base, it also benefits the community as a whole.

"People are taking their money and hiring a local firm to do work that could otherwise go to some national company," he said. "Then they have a little more disposable income, which might go to a restaurant or a movie. It's a double-whammy of hiring a local company."

Spears said the co-op is also a chance for local companies to network and exchange ideas.

Rex Wright, chairman of the Maryland branch of the United States Green Building Council, said the idea is new to him, but one he welcomes.

"One of the problems we have with our industry is people finding all the services they need," he said. "People have had to find the businesses themselves. Being able to connect those businesses is important to growth."

The Green Building Council is a nonprofit organization committed to promoting green building and sustainable practices.

Kennedy said he hopes that by December 2010, the co-op will be at full steam, with a growing member and supplier base.

"Everyone is very enthusiastic about it, and I think with a little word-of-mouth it will really take off," he said.

  
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