[1] In 1977, 29-year-old John Schaeffer lived on an off-grid community in Mendocino County, California, and commuted 35 miles (56 km) to work each day as a computer operator.

In 1978, Schaeffer took $3,000 in savings and a $5,000 loan from his father and purchased a 50% share of an alternative energy store Open Circle from Steve Troy in Willits, California.

They sold them for $900 each to people interested in simple living in Mendocino County who also wanted to enjoy light fixtures, TV and a few of mainstream civilization's other creature comforts.

Steve Troy left Real Goods and focused his company Jade Mountain (founded in 1979) on technology and renewable energy systems.

[citation needed] In 1990, the entire solar industry received a boost from the 20th anniversary of Earth Day and the Persian Gulf War, and Real Goods took advantage of it.

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.

[8] 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.

[10] 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.

The merger was completed on December 20, 2011, and the combined company retained the Real Goods Solar name, NASDAQ ticker (RSOL), and Louisville, Colorado headquarters.

The SLI and the Real Goods Store are both headquartered at the Solar Living Center (SLC), a 5,000-square-foot (460 m2) strawbale building surrounded by 12 acres (49,000 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.