Real Goods
| File:Real Goods company logo.png | |
| Company type | Subsidiary |
|---|---|
| Industry | Energy |
| Genre | Off-grid and renewable energy |
| Founded | 1978 |
| Founders | John Schaeffer and Steve Troy |
| Defunct | 2019 |
| Fate | Acquired |
| Successor | The Alternative Energy Store Inc. (altE Store) |
| Headquarters | , |
Area served | United States |
Key people | Sascha Deri (CEO) |
| Products | Renewable energy systems and storage |
| Owner | The Alternative Energy Store Inc. (altE Store) |
| Website | realgoods |
Real Goods Trading Corporation—often referred to simply as Real Goods—was an American retail and wholesale e-commerce enterprise headquartered in Ukiah, California. The company specialized in solar energy and sustainable power solutions tailored for off-grid and environmentally conscious lifestyles. After its acquisition by AltE Store in 2019, it subsequently became part of California’s GigaWatt Inc. in 2024.
Foundation
In 1977, at age 29, cofounder and president John Schaeffer was living off the grid in Mendocino County, California. The following year, he invested $3,000 of his own savings along with a $5,000 loan from his father to purchase a 50% stake in an alternative energy retailer named Open Circle, operated by Steve Troy in Willits, California. This business was rebranded as Real Goods Trading Company and focused on providing affordable essentials for off-grid living.
Within its inaugural year, Real Goods distinguished itself as the first U.S. company to commercially retail solar panels by selling 100 units—establishing an early foothold in the renewable energy sector.
By 1982, the company had grown to include two additional locations in Ukiah, California and Santa Rosa, California. During this period, Steve Troy authored The Alternative Energy Source Book, a comprehensive manual on sustainable living practices. However, by 1985 all three outlets had shuttered. Troy departed to concentrate on Jade Mountain (established in 1979), which later transitioned into Real Goods Solar through strategic sales involving Gaiam.
Adapting to market conditions, Schaeffer shifted focus to a mail-order catalog business with a modest $3,000 investment, running operations from his garage—a strategy that kept the company afloat during difficult phases.
In 1991, Real Goods pioneered a direct public offering (DPO), successfully raising $1 million by selling shares directly to its customer base—an innovative funding approach for a renewable energy startup at the time. The following year, the company inaugurated National Off-The-Grid Day to advocate for solar-powered lifestyles and conducted a second stock offering in 1993.
These capital infusions facilitated groundbreaking for the Solar Living Center in Hopland, California in 1994. This site would become home both to the Real Goods retail store and the Solar Living Institute. That same year also marked the launch of Real Goods’ e-commerce platform, significantly expanding its market presence and operational capabilities.
Collaboration with Gaiam and the Establishment of Real Goods Solar
In 2001, Real Goods combined forces with the eco-friendly lifestyle company Gaiam through a stock exchange deal valued at $8.7 million. Shareholders of Real Goods received one share of Gaiam’s Class A common stock for every ten shares they held, and the company’s main office was moved to Broomfield, Colorado.
Post-merger, Real Goods introduced a residential solar installation branch named Real Goods Solar in 2002, targeting the Colorado and California markets. The success achieved in residential solar installations paved the way for launching a commercial solar division in 2004.
By 2008, with Gaiam as the principal shareholder, Real Goods relocated its corporate headquarters to Louisville, Colorado. This new facility featured a 100 kW solar photovoltaic system installed by Real Goods Solar and incorporated sustainable design aspects such as bamboo flooring, low-VOC paints, recycled office furniture, and an extensive recycling program aligned with the company’s environmental business objectives.
Public Offering and Growth in Solar Installations
On May 8, 2008, Real Goods Solar went public with an initial public offering (IPO), raising $55 million and listing on the Nasdaq exchange under the symbol RSOL. Gaiam maintained control by holding all Class B shares.
Between 2007 and 2008, guided by CEO Schaeffer’s strategic vision, Real Goods Solar pursued rapid expansion through acquiring four California-based solar installation firms: Marin Solar ($3.2 million), Carlson Solar ($3.2 million), Independent Energy Systems ($3.6 million), and Regrid Power ($3.8 million). These acquisitions considerably boosted market presence and established Real Goods Solar as a top national solar installer.
On December 20, 2011, Real Goods Solar merged with Earth Friendly Energy Group Holdings (operating as Alteris Renewables), a renewable energy installer headquartered in Connecticut. The merged organization retained the Real Goods Solar name, Nasdaq ticker RSOL, and Louisville headquarters. Equity holders of Alteris received 8.7 million shares of Real Goods Solar Class A common stock as full ownership compensation. This consolidation expanded Real Goods Solar’s geographic footprint and enhanced its service offerings within the renewable energy sector.
Returning to Foundational Operations
In January 2014, Real Goods Solar unified its residential and commercial solar installation operations under the new brand RGS Energy and updated its Nasdaq ticker from RSOL to RGSE.
Later that year in December, founder John Schaeffer reacquired full ownership of the Real Goods retail, catalog, and e-commerce segments from RGS Energy for $1 million. Schaeffer and his wife Nantzy Hensley resumed exclusive control of Real Goods, effectively restoring the original corporate framework preceding its merger with Gaiam.
Acquisition by AltE
On September 4, 2019, The Alternative Energy Store Inc. (altE) purchased the assets of Real Goods Trading Corporation from John Schaeffer. altE’s CEO Sascha Deri was appointed as CEO of Real Goods, bringing leadership inspired by a personal connection to the brand’s heritage.
altE maintained all existing sales and customer service personnel at Real Goods, continuing to support renewable energy clients across Northern California. Operating under the established Real Goods brand, the combined company has delivered solar energy solutions to more than 120,000 customers globally, reinforcing its strong market position in off-grid and sustainable energy products.
Solar Living Center
Established in 1994 by John Schaeffer on a former landfill site once managed by the California Department of Transportation in Hopland, California, the Solar Living Center (SLC) spans 12 acres dedicated to permaculture and renewable energy demonstrations. Officially opened in 1996, it is home to the nonprofit Solar Living Institute as well as the Real Goods retail outlet.
Drawing as many as 200,000 visitors each year, the SLC operates a solar photovoltaic array that produces roughly 160,000 kWh annually. Noteworthy features include a grove of trees growing through an old automobile ("grow-through car"), eco-friendly restrooms constructed from repurposed materials, an observation beehive, a garden designed for pollinators, a sculpture garden, a permaculture-based vegetable garden, a bamboo pyramid structure, a lavender labyrinth, and an exhibit showcasing bicycle-powered generators.
In October 2015, the center broadened its sustainable business ventures by launching Emerald Pharms, a solar-powered cannabis dispensary dedicated to medical CBD strains and patient education.
Solar Living Institute
Founded in 1998 by Schaeffer, the Solar Living Institute operates as a 501(c)(3) nonprofit organization committed to fostering sustainable lifestyles through environmental education. Based at the Solar Living Center alongside Real Goods’ retail store, it provides public workshops, classes, and an ongoing internship program throughout the year.
Store
Located within the SLC campus, the Real Goods retail store occupies a 5,000-square-foot facility built using strawbale construction combined with pneumatically impacted stabilized earth (PISE). Designed with passive solar techniques to reduce reliance on supplemental heating and lighting, this store caters to walk-in visitors while also supporting Real Goods’ e-commerce and order fulfillment activities.
Billion Pound Goal
In 1990, Real Goods introduced its Billion Pound Goal aimed at preventing one billion pounds of CO2 emissions by the year 2000 through sustainable business strategies and eco-conscious product sales. Progress was monitored using a formula developed by the Union of Concerned Scientists via mail order catalogs. This milestone was reached three years early in 1997. A subsequent target set for 2010 was also accomplished ahead of schedule in 2008.
Paper and Packaging Reduction
By 2007, Real Goods achieved Forest Stewardship Council certification by increasing recycled paper content in its catalogs from 20% to 30%. From 2008 through 2010, the company further decreased paper consumption by 75% by downsizing catalog dimensions and weight and reducing mailing volumes. Customers were encouraged to shop online through initiatives such as "Don't Buy From This Catalog," with catalog distribution tailored according to individual purchasing histories.
Go Zero
In collaboration with The Conservation Fund in 2006, Gaiam/Real Goods launched Go Zero—the first carbon-neutral shipping program for products. Contributions from this effort facilitated planting nearly 1,500 trees to offset emissions generated by headquarters and fulfillment center operations during that year.
Solar Living Sourcebook
The inaugural edition of the Solar Living Sourcebook was published by Real Goods in 1982 as an extensive resource covering renewable energy and sustainable living practices. Now in its 14th edition, it has sold over 600,000 copies across 44 English-speaking countries. The book is printed on paper made entirely from post-consumer recycled content using soy-based inks.
Recognition
Real Goods gained acknowledgment by appearing on the Inc. magazine's list of the Top 500 Fastest Growing Companies. The company's founder, John Schaeffer, was honored with the Small Business Administration's Small Business Person of the Year award in 1994, received the Green Power Pioneer Award in 2007, and was inducted into the International Green Industry Hall of Fame in 2013. Additionally, Real Goods has been awarded three Rodale Awards and has been featured in prominent publications such as The Wall Street Journal, Fortune, and Time.