Zach Dell

Why do we install them ourselves from our own warehouses with our electricians?

Why do we own them on the balance sheet and finance them at the portfolio level?

Why do we sell the power ourselves?

Why do we trade the power ourselves?

Because by doing it ourselves, we can take costs out of each part of the equation, which drives our returns up, which drives the cost that we have to charge the homeowner down.

In a commodity industry, your North Star has to be delivering the commodity to the customer at the lowest price possible.

And that is our North Star.

We want to be in a position where we can land a battery and eventually a solar panel on the grid cheaper than anyone on the planet on a dollar per kilowatt hour basis, which means that we can sell an electron cheaper than anyone on the planet on a dollar per kilowatt hour basis.

And that's really the vector

Today, it costs us on the order of $10,000 to get a battery in the ground.

And that's inclusive of the bomb cost of the hardware.

We could talk about the battery, the inverter, all the pieces that go into that, the installation costs.

So getting a truck out to the house and having two electricians on site for four to six hours, and then the cost to acquire the customer.

So that's today about $10,000.

The customer pays $500 upfront, and then we receive a tax credit, an ITC as part of the IRA, for up to 30% of the cost of the project.

That goes to 40% in some parts of Texas that are considered energy communities.

Most of our installs are in that area, but for simplicity, let's call it 30%.

So if it costs us $10,000, we're getting $3,000 back in the form of tax credit.

The customer's paying 500 upfront.

So you have on the order of $6,500 of cost on a totally unlevered basis.