Zach Dell

Is it storage?

The geographic diversity.

Is it all in Texas?

Is it across a bunch of different markets?

And then the quality of the cash flows.

Is it merchant?

Is it contracted?

How much of it is merchant versus contracted?

That project finance world has financed the solar, storage, wind build out over the last couple of decades.

On the other side of that, you have securitization, which is basically defined the scale up of the residential home solar companies, notably Sunrun, who's done this most successfully.

Of course, there are examples like SunPower and Sunova who have done this less successfully.

That's kind of all unraveling where you develop a bunch of projects and then you securitize all of those projects.

You basically capture value today for access to the cash flows later.

And that's just like a financial engineering product.

And securitizations are done in all kinds of different industries.

And they're typically the largest, most liquid and lowest cost part of the capital markets.

Where we are today is we do finance our CapEx with debt.

And most of that debt has been raised on the back of large equity fundraisers.

And those lenders, which are more akin to venture debt lenders, are really looking at the cash on our balance sheet and looking at our ability to raise incremental equity capital and saying, okay, we can get comfortable with this amount of debt.

As the fleet grows, and as you know, it's growing quickly, the amount of debt that we'll need to raise and deploy is going to be way greater than the amount of equity we have on the balance sheet.