Toronto - Reducing the financial barriers for consumers to convert to environmentally friendly solar thermal systems is the heart of an innovative business model proposed by a company founded by graduates and students of the MBA program at the University of Toronto's Rotman School of Management.

The Micro-Utility Agreement (MUA) program of Lumen Earth, founded by Rotman MBA graduate Hamed Ghanbari, was recently named a long-list finalist for the Financial Times Climate Change Challenge. It aimed to find the most innovative business solution to the effects of climate change and was sponsored by the Financial Times and Forum for the Future. Out of 300 entries in the challenge, only 12 made it to the finals, and Lumen Earth was the only Canadian finalist. Entrepreneur Sir Richard Branson and Lionel Barber, editor of the Financial Times, were among the judges. Further details are available online at www.ft.com/climatechallenge.

Lumen Earth's business model innovation enables consumers to adopt solar thermal systems without up-front or operational costs, while reducing exposure to energy price fluctuations. Consumers enjoy clean energy at an immediately discounted capped rate over a long-term service agreement. Rotman MBA student Tim Yin, who will be graduating from the program this spring, is Lumen Earth's, Vice President, Operations & Engineering.

"Many people are surprised to learn that the primary barrier to the widespread adoption of localized solar thermal solutions is not technical deficiency or excessive cost, but rather upfront financing and economic risk," says Ghanbari, Lumen Earth's CEO. "MUA is a business model innovation that will facilitate widespread adoption of solar energy by eliminating up-front financing costs and economic risk associated with fluctuations in energy prices. In addition, the MUA model is a concept that consumers are already familiar with as it builds on the traditional utility model of purchasing energy."

Lumen Earth installs a solar thermal system (e.g. Solar Water Heater, Solar Space Heater/Cooler, or Solar Pool Heater) for clients at no charge and also guarantees them a capped, discounted energy rate. In return, customers sign up for a 20-year service contract. Lumen Earth makes its profit by reducing the client's energy costs, through the solar thermal system, significantly more than the discounted rate the client pays. The system remains property of Lumen Earth and is maintained by the company until the maturity of the agreement, after which the client is given the option of taking ownership.

"Hamed was a student in my MBA course on Corporate Strategy and showed an entrepreneurial mindset right from the first class. Three years later I continue to be impressed with him and his colleagues in the management group at Lumen Earth," says Ajay Agrawal, Associate Professor of Strategic Management, and Peter Munk Professor of Entrepreneurship at the Rotman School, who is an advisor to the company. "They are smart, innovative, and determined to be part of the clean energy revolution despite the fog of uncertainty that still clouds this industry."

"Hamed and his team have the passion and effectiveness to deliver superior results in the fast developing marketplace of climate change," adds Rotman Adjunct Professor Brendan Calder, a member of Lumen Earth's advisory board.

The MUA model has already been tested with the installation of Solar Water Heaters on a number of small-scale residential developments in Toronto. For Phase 2, LE is currently engaged in a pilot project with the prominent Toronto commercial and residential real estate firm Times Group Corporation to demonstrate the economic viability of the MUA model in large-scale installations.

Further information on Lumen Earth is available online at www.lumenearth.com.

The Rotman School of Management at the University of Toronto is redesigning business education for the 21st century with a curriculum based on Integrative Thinking. Located in the world's most diverse city, the Rotman School fosters a new way to think that enables the design of creative business solutions. The School is currently raising $200 million to ensure Canada has the world-class business school it deserves.