One(ish)-Liners
Opportunity: Owners of solar panels need a more cost effective means of storing electricity while the sun isn’t shining and/or the grid has shut down. Lithium ion batteries are power dense and effective, however, they’re incredibly expensive.
Innovation: Gravity energy storage. Excess electricity will be used to power an electric motor which lifts a series of heavy weights, storing energy in the form of potential energy. When electricity is needed, the weights will slowly fall, turning the electric motor in the opposite direction transforming the motor into a generator.
Venture Concept: Gravity energy storage will be sold in tandem, or after, a solar installation. It will allow those who cannot justify the financial and environmental costs of lithium ion batteries to keep their lights on at all times, even during a power outage. The assembly and installation process will be conducted onsite with a team of strong hands.
Opportunity
The Need
In an age where solar power has become more affordable and efficient than ever before, the move to solar has become a popular choice for homeowners and commercial businesses. However, solar has one fatal flaw. The panels operate at peak power for only around five hours per day. Thus, the panels must be paired with a means of storing energy during those five critical hours for use in the remaining nineteen. Some customers have decided to bypass this by connecting their solar systems directly to the grid using a method called net-metering. However, in the case of a power outage, such net-metering systems are rendered useless when the power company cuts off all power in order to prevent unanticipated surges or shorts. For those who decide to avoid this issue and install a battery backup face an expense which increases their initial solar investment by 50-100%, doubling the time it takes for them to regain the principal on their investment. In addition, lithium ion battery production produces a significant amount of pollution. For those customers who cannot justify the significant financial and environmental costs, there lacks a solution.
The Market
The market for solar extends to wherever the sun shines, especially in the places where going solar has become a fad, such as Florida or California. Federal and State incentives have also helped increase the popularity of solar. Going back to the notion that solar is a fad, one of the forces which has spurred the growth of the solar market is the increasingly popular desire to live sustainably. As this desire spreads, assuming it does, so will the demand for solar. And, by consequence, so will the demand for a means to store solar energy. This opportunity is nearly a national one, or at least one which encompasses many states. One thing of note, referring back to government incentives, the Federal government solar tax credit started at 30% for systems installed by Dec 31, 2019 and has/will decrease by 4% every year until it is terminated in 2022, unless Congress decides to renew. This decrease in incentive may lead to a decrease in demand for solar which would hurt the market.
Innovation
The energy storage system I plan to propose involves using gravity as a means for storage. Though not as power-dense as lithium-ion batteries (about a quarter power-dense, based on some napkin math), using weights and gravity as energy storage is much more sustainable and the manufacturing of the device produces significantly less pollution. My company would pair this innovative technology with solar installation services so as to diversify revenue drivers. The overall pricing would be on a per project basis, however, for the gravity storage system itself, see the following tables and the image at the top of the page. The selling price will be $3500 (under half the cost of Tesla’s Powerwall, $7600) and will cost approximately $2200 to manufacture, leaving $1300 in profit per unit.
Venture Concept
Solving the Need and Target Audience
This alternative electricity storage device solves the customer need for inexpensive, sustainable energy storage. For those hard-core Tesla disciples, it may be difficult to persuade them to use this new system. However, those who don’t yet have a backup battery system may see this as an opportunity to maintain power regardless of power outages.
Obtaining a Customer Base
Customers will come from two categories. The first category contains people purchasing a solar system. The gravity storage device will be sold in tandem to a full solar system. The second category contains people who have a solar system but do not yet have a battery back-up system. These people will be sourced by collecting customer data from partnering solar installers.
Manufacture and Installation
One weakness is the difficulty in producing this innovation. I haven’t quite figured out every detail and design of the system. However, I do know that, in order for the device to be manufactured and installed, I’d need manpower. Each part (weight, frame, motor, electronics) will have to be assembled onsite. With a 3600lb weight (for the 13.5kWh system), a crane will probably be required, or the weight will have to be cast onsite. Hiring a few strong hands may be a necessity.
3 Minor Elements
Most Important Resource
The connections to architects, engineers, investors, and customers which I already have.
What’s Next: Venture Side
Expand the gravity battery system to much larger scale. Attract commercial entities and expand to utility scale.
What’s Next: Entrepreneur Side
In five years, I’d like to be managing accounts with various utility companies and staying hands-on with refining the engineering of the device. Throughout the next decade, I would like to be continually creating new and better devices, doesn’t even have to be in relation to energy. This first venture will hopefully open my eyes to the possibilities and serve as my intro into the real-world of entrepreneurship, business creation, and making a great product.
Summary of Feedback
The feedback I received from my peers was all positive and didn’t contain any critiques, so I asked Professor Pryor for his input. His three comments had to do with 1. Clarifying the unmet needs; 2. Explaining the product in more detail, include a drawing; 3. Indicating the cost, method of construction and installation, and sales method.
In response to the first comment, I tried to clarify that though lithium ion batteries currently solve the need for battery-backup, they are costly both financially and environmentally. Thus, a more economical and eco-friendly alternative must be created.
To address the second and third comments, I included a rough hand-drawing and a series of tables which indicate dimensions and costs. I also expounded on the manufacturing and installation process under the Venture Concept section.
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