Venture Concept No. 1 - Gravity Storage Solutions

Opportunity

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.  Those who decide to avoid this issue and install a battery backup face an expense which increases their initial solar investment by 50-100%, potentially doubling the time it takes for them to regain the principal on their investment.  Such individuals who purchase battery backups tend to be incredibly loyal to the company who produces them, especially if the name on the system reads Tesla.

            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.  Once I’ve finalized designs of the gravity storage system, I’d be able to give a better estimate of the cost of the system and how much I could sell it for.

Venture Concept

            This innovative alternative electricity storage device solves the customer need for inexpensive, sustainable energy storage.  For those hard-core Tesla disciples, it will 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.

            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.  In the beginning stages of the business, I wouldn’t need more than a few strong, knowledgeable hands to help with installation.

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 a much larger scale than just residential.  Attract commercial entities and maybe 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.