00:31:40 · Molly Wood
[00:31:40] S1: And on top of that, most people lease their rooftop solar, so they don't own it in the first place, and there's a whole lock And in thing
00:31:48 · Alan Chang
[00:31:48] S4: then there's a fourth problem, which is effectively the solar technology itself, right? So solar, the peak production for solar happens around, you know, during the day, right, at noon, depending on angle of the panel, but around, let's say around noon, right? Whereas the peak demand for most people, right, is actually from six to 9PM. When you come off, when get off work and you turn the TV on and we put the kettle on, right? You know, from the analysis we've done, solar can only cover up to 30% of your demand, right? And even with batteries, that can increase by maybe 5%. So the rest of the time, right, from 67% of the time, it basically becomes a financial product, right? So what happens is you're exporting, during the day you're exporting your excess solar back to the grid, right? And you get a very, very bad rate, usually, for what you get. And at night, you're basically importing, right? So 30% of the time, it's basically like an energy hedge. 70% of the time, like a financial problem. It's like a savings account, right? So in our opinion, it's not that effective, right? So what we want to do is we want to take, effectively, a hybrid technology of utility scale of wind, solar, and batteries, and in the future, you know, more renewable technologies. And we want to tokenize it and then basically give like a virtual solar panel to the customer. With 50% better economics than rooftop solar, much better UX, so you don't have to get someone to install it, right? It's hassle free, just press the button, right? You can buy and sell anytime. So if you don't have, let's say $15,000 upfront to set up a rooftop solar, that's fine, right? You can start as little as $1 and they can build it up, right? You know, you can swipe some of your money from payday, right, every two weeks this, you know, virtual generator, and then you can start building up more and more over time, right? And offset more and more of your energy bill over time, right? I mean, we've seen this in a lot of fintech players, right? It's, you know, we can do the exact exactly the same. And then let's say, first, for whatever reason, you need some liquidity, right? You can sell immediately and then cash out, and then later you can you can put it back up again. And more and most importantly, if you, let's say, decide to move house, right?
00:34:09 · Alan Chang, Molly Wood
Mean, a lot of young people like to move house nowadays, right? If you want to move, that's fine. Like you take your virtual rooftop solar with you, right? You don't have to sell your house and then install rooftop solar again, right? [00:34:23] S1: And in theory, you could also double up, right? If you end up in a house that has rooftop solar or a house where you're allowed to buy energy directly from you, you could still, you can still engage in this sort of token arbitrage, if you will. [00:34:37] S4: Exactly. And token is for us a way to do really accounting really, you know, who owns what, as well as facilitated liquidity, which is, you know, helping if people want to buy or sell in the secondary market, they can, right? So that's the reason why we use token. And that's also how we finance, you know, to build more net new renewables, right? So our goal is to basically raise as much money as possible, right, to build as much renewables as possible, right? So we do that by, you know, two simple things, right? Number one is making more money per unit energy we generate. Number two is effectively, you know, crowdfunding, right? [00:35:17] S1: Right.
00:35:17 · Molly Wood, Jason Calacanis
[00:35:17] S1: Right. [00:35:20] S0: Alright, listen, Masterclass is the best way to learn from the world class instructors at the top of their game. I love the product. It's some of the best stuff you can get on the Internet, including amazing sessions like the greatest shooter of all time, my guy Steph Curry, teaching you how to shoot ball handling, scoring, plus legendary Disney CEO Bob Iger, teaching business leadership and strategy, and I recently, I love this one, I watched Chris Voss, a former FBI lead hostage negotiator, teach the art of negotiation. What a great course that was. And not only do they have these world class teachers, they also have world class production values. That's one of the great things. Watching this is a delight. It's it's like the HBO of education. It's like the world class, most beautiful of videos you've ever seen. It's amazing. They have 11 categories with over a 150 instructors now. And the lessons, yeah, they're about ten to fifteen minutes long, so they're gonna fit into your busy schedule. You should get Masterclass, you get that great subscription, you use it for your family, everybody, know, get smarter together. Get unlimited access to every Masterclass, and as a Twist listener, you'll get 15% off your annual membership. Just go to masterclass.com/startups. Once again, masterclass.com, you know how to spell that, that's easy, slash startups for 15% off the masterclass annual membership. [00:36:36] S1: Is it your intention that the value of the token itself will go up, or will it be tied to the kind of kilowatt hour price?
00:36:36 · Molly Wood, Alan Chang
[00:36:36] S1: Is it your intention that the value of the token itself will go up, or will it be tied to the kind of kilowatt hour price? [00:36:45] S4: I mean, obviously, I I don't know. I don't know how how these things will get valid, but I would imagine it yeah. Would I I would imagine it will be, you know, tied to, you know, the future of power prices. Right? And if the past is any indication of the future, it probably will go up. [00:37:05] S1: But the idea is that ultimately what the token represents is a new version of something like a renewable energy credit. It's excess storage that you are able to sell and get liquidity because other energy brokers need. [00:37:18] S4: Think think of it as a [00:37:19] S1: This... You know? [00:37:20] S4: Think of it as a [00:37:21] S1: Are there actual kilowatt hours attached to the token? Yeah. So Or is it a representation of a credit? [00:37:26] S4: So one token represents [00:37:28] S1: Energy is so complicated. I just wanna tell our listeners it's so complicated. And you're making it way easier, but it's so complicated. [00:37:33] S4: Yeah. I think the easiest solution... Easiest way to explain is one token is one watt of power. Right? And that power generates energy over time. [00:37:41] S1: I think I got it. So where you are allowed or where because there must be some places where you can't sell directly to consumers or small businesses, right? So where you are allowed, you could become a direct customer of Tesseract. [00:37:53] S4: Correct. [00:37:54] S1: Where are those places?
00:37:54 · Molly Wood, Alan Chang
[00:37:54] S1: Where are those places? [00:37:56] S4: So we know UK and Europe is possible, right? We know in some places The US is possible, but we are aware like some markets, you know, where for example, it's completely monopolized by the government, right, is not possible. So I think the markets where this can work is basically privatized markets. [00:38:14] S1: Are you attaching like a movement to this at all, which is, you know, the idea that as more and more people become aware that we could be buying power directly and more cheaply, they'll start to agitate for it a little bit more. Yeah. [00:38:27] S4: For sure. For sure. [00:38:28] S1: A happy side effect if it happens. [00:38:29] S4: Yeah. Exactly. Exactly. Like, renewable power is just fundamentally cheaper. It's better for the environment. Right? And there's no reason why people shouldn't buy this, right? There's just so much barrier to entry to rooftop solar, right? We just want to remove all those barriers, also improve on the economics, And it's a win win for everyone. [00:38:51] S1: How do you look at the market size for this? I mean, anybody could buy the token? Mean, it's pretty big. Infinite TAM? [00:39:01] S4: Yeah, I mean, so the way I think about it is right now, globally, there's approximately 10,000,000,000,000, so 10 terawatts of power, right, including non renewables, right? So this is just global power supply. To replace it with, you know, 100% renewables, you approximately need, you know, $10,000,000,000,000. [00:39:24] S1: Right. [00:39:25] S4: So that's a pretty big market.