Zach Dell

And so we're not going to be able to collateralize that debt by cash on the balance sheet.

And so we'll have to go into more creative structures

Where we're going long-term is almost certainly the securitization market.

Like I said, it's large, it's liquid, it's low cost.

And there's precedent for these kinds of assets being securitized.

If you actually look at the models and understand the numbers, they're just cash flow streams.

And so if you have transparent and predictable operating history, we have almost 1,500 of these things in the ground.

We're deploying 20 a day.

That number's going to go to 50 a day over the course of the next couple of months.

You can say, okay, well, dollars go out at this time and they come in at this time.

And there's a process by which you underwrite that and apply a risk premium to it.

And then the lender has their cost of capital and we have the cost of capital of our equity.

We think that we can access the lower cost of capital through debt.

And so we think that there's a path to scale this business in a really capital efficient way, leveraging the capital markets with some combination of asset-backed financing, tax capital, and of course, equity, which we raised to date.

I started the conversation by saying we see ourselves as an energy technology company.

This strategy of compounding cost advantage through vertical integration is defined by engineering.

We are building the most efficient grid resource on the planet in the form of battery storage.

We think there are equivalent engineering problems to solve that will create cost advantages with regards to residential solar, but also other products.

like commercial batteries, commercial solar, EV charging at the home level, EV charging at the commercial level, things like electric heat pumps at the residential and the commercial level.

As you mentioned, going downstream into the home and into the built environment.