10 ms·

Bright (YC W15) Aims to Bring Solar Power to Mexico

29 points by taylorwc 12y ago

deleted 12y ago
[deleted]
bskinny129 12y ago
That's going to be a crucial place for solar when the industry explodes over the next decade. Good bet.
TomGullen 12y ago
Sounds like the same or similarish business model to SCTY
- JGreenberger 12y ago
  SCTY is definitely a great model and has done amazing things in the US. The key difference with Bright is we focus just on software and finance to enable local Mexican installers to scale. In comparison, SCTY is a totally integrated entity and installs all of its own projects. Analytics around underwriting to protect project investors is a key element for us as well.
notdang 12y ago
> Fees can get up to over $4,000 USD in the hot month of August when not subsidized, according to the Mexican Federal Electric Commission. The site lists the price in Mexican pesos, not in USD, so it's arround 267 USD.
- notdang 12y ago
  Also, in Mexico, when they write: $ 3.860, they mean 3 pesos and 86 centavos. On CFE site they say that 1KWH cost 3 pesos and 86 centavos. So I am not sure where they got the 4000 USD/month in Mexico. I leave in Mexico and pay around 900 pesos (60USD) for 3 months.
- JGreenberger 12y ago
  Great point - we often see bills for the highest electricity consumers between 1,500 and 5,000 pesos per month, which is around $100 to $350 USDs per month
205guy 12y ago
Great, just what Mexico needs is a zero-down solar clone as a carpetbagger. The issue with zero down solar is this: solar panels (and equipment and installation) now cost about 5-10 years worth of electricity (it all depends on electric rates and any state subsidies, which are obviously different in Mexico), but they last 20 years or more. The zero-down subscription models capture that 10-15 years of revenue instead of passing it on to the electric user. Much more advantageous to the homeowner would be to offer solar micro loans for the express purpose of buying and installing the panels. Structure the loan so it's a bit less than he electric bill (and more predictable) and it should be paid off in 5-10 years, and then the owner gets he free electricity. Or the SunRun power purchase model where the company sells all solar output to the homeowner for the cost of the system (either upfront or on a monthly payment plan), but the company still owns the panels (and could conceivably recover them in case of non-payment). As far as I can tell, the zero-down model only works because of slick marketing and the general public being unfamiliar with the true low cost and possible financing of a PV system. And I'm sure the Mexican population is thrilled about having a foreign-backed company data mining their financial info and creating an unregulated credit agency.
- JGreenberger 12y ago
  Great point about zero-down solar and we're by no means wed to any one structure to enable solar for the masses (lease, loan, PPA, etc.). Our goal is to get solar on as many houses as possible.
JGreenberger 12y ago
Hey guys - I'm Jonah, the founder, and am more than happy to answer any questions you have.
- martinald 12y ago
  Love the concept. What's your email address? Would love to chat more.
  - JGreenberger 12y ago
    jonah@thinkbright.co
    - spiritplumber 12y ago
      How much of your workgroup speaks Spanish? Depending on where you go, you'll have to integrate yourself into the community if you want to do business -- just showing up and "being gringos" will result in getting a cold shoulder in a lot of situations.
      - JGreenberger 12y ago
        Great point. Today, I'm actually the only team member not Mexican (and in Mexico) and continuing to grow this way is definitely a key part of the plan.
WildUtah 12y ago
I lived in parts of Mexico where solar wouldn't be a great idea because peak demand was after sundown and air conditioning was rarely wanted or used. Quite a lot of the population lives over 2000m (6200ft) elevation where the weather is cool. But I remember even decades ago that solar was already the main power source in small towns in remote parts of Coahuila and Chihuahua I used to bicycle through. Even today along the steamy coasts and northern deserts it gets plenty hot and electricity demand is driven by air conditioning. Solar would seem likely to pay off fast in Sonora, Tamaulipas, Veracruz, Jalisco, and places like that. Even better would be the orderly and steady communities of Tabasco and the Yucatan that get so hot, receive much sun, and can sustain long term investments because the local economies have remained stable while growing. But I don't recall ever reading about subsidies or utility companies paying solar customers for contributing back to the grid. Those are the two supports the solar industry loves in the USA. Without them, solar has to pay for itself in the most brutal way by just making electricity usage cheaper house by house. I wonder @JGreenberger where the most exciting region is to promote household solar, whether larger collective or unidad habitacional installations are viable, and whether there is any kind of subsidy or reverse tariff arrangement to promote solar use.
- JGreenberger 12y ago
  Great questions. Although there is a 100% depreciation in year one tax benefit (that's complicated to capture unfortunately), the beauty of this market is that its actually just more economic to produce energy from solar panels than buy from the grid for unsubsidized customers. Sonora, Jalisco, and many of the other locations you mentioned are great markets and very economic. The driving reason is that electricity is quite expensive when unsubsidized by the government.
spiritplumber 12y ago
I consulted for a solar company in Sicily and the biggest problem was panels being stolen - paying for protection didn't help much. It wasn't a case of people sneaking in at night and taking panels; it was a case of two dozen people driving there with flatbed trucks, calling the police and warning them to stay away lest there be a shootout, and removing the entire panel and sunchaser setup cleanly. If the situation is similar where you are working, be aware that conventional security systems won't help much. Eventually we gave up because even being able to know exactly where the panel went via hidden GPS/transmitter setups didn't do any good... local law enforcement didn't want to start a siege on our behalf and I can't blame them.
- JGreenberger 12y ago
  Fascinating - @spiritplumber, would you be willing to email me at jonah@thinkbright.co to discuss further? We haven't encountered this problem since we're targeting safe areas but I would love to learn more.
yeya 12y ago
Does the solar Panel eventually become property of the home owner? Is that an option? I live in Nairobi and PAYG until you own it ($35 deposit then $0.45 per day for a year) - this is mainly targeting rural off-grid (70% of East Africa) - where they spend $200 on Kerosine p.a Their main challenge is repayment - some days people forget to repay or have competing financial priorities - I think they give grace periods before remotely turning off the power.
- JGreenberger 12y ago
  Indeed! The customer can become the owner at some point usually between year 10 and year 20 if of interest. Also, we're fascinated by PAYG solar installations and plan on supporting them in any way we can. An awesome one in Mexico is http://ilumexico.mx/ http://ilumexico.mx/.
robzdc 12y ago
Hermosillo could be a good target, it's like 40℃ - 50℃ all f*ing year

29 points by taylorwc 12y ago

deleted 12y ago

[deleted]

bskinny129 12y ago

That's going to be a crucial place for solar when the industry explodes over the next decade. Good bet.

TomGullen 12y ago

Sounds like the same or similarish business model to SCTY

JGreenberger 12y ago
SCTY is definitely a great model and has done amazing things in the US. The key difference with Bright is we focus just on software and finance to enable local Mexican installers to scale. In comparison, SCTY is a totally integrated entity and installs all of its own projects. Analytics around underwriting to protect project investors is a key element for us as well.

notdang 12y ago

> Fees can get up to over $4,000 USD in the hot month of August when not subsidized, according to the Mexican Federal Electric Commission. The site lists the price in Mexican pesos, not in USD, so it's arround 267 USD.

notdang 12y ago
Also, in Mexico, when they write: $ 3.860, they mean 3 pesos and 86 centavos. On CFE site they say that 1KWH cost 3 pesos and 86 centavos. So I am not sure where they got the 4000 USD/month in Mexico. I leave in Mexico and pay around 900 pesos (60USD) for 3 months.
JGreenberger 12y ago
Great point - we often see bills for the highest electricity consumers between 1,500 and 5,000 pesos per month, which is around $100 to $350 USDs per month

205guy 12y ago

Great, just what Mexico needs is a zero-down solar clone as a carpetbagger. The issue with zero down solar is this: solar panels (and equipment and installation) now cost about 5-10 years worth of electricity (it all depends on electric rates and any state subsidies, which are obviously different in Mexico), but they last 20 years or more. The zero-down subscription models capture that 10-15 years of revenue instead of passing it on to the electric user. Much more advantageous to the homeowner would be to offer solar micro loans for the express purpose of buying and installing the panels. Structure the loan so it's a bit less than he electric bill (and more predictable) and it should be paid off in 5-10 years, and then the owner gets he free electricity. Or the SunRun power purchase model where the company sells all solar output to the homeowner for the cost of the system (either upfront or on a monthly payment plan), but the company still owns the panels (and could conceivably recover them in case of non-payment). As far as I can tell, the zero-down model only works because of slick marketing and the general public being unfamiliar with the true low cost and possible financing of a PV system. And I'm sure the Mexican population is thrilled about having a foreign-backed company data mining their financial info and creating an unregulated credit agency.

JGreenberger 12y ago
Great point about zero-down solar and we're by no means wed to any one structure to enable solar for the masses (lease, loan, PPA, etc.). Our goal is to get solar on as many houses as possible.

JGreenberger 12y ago

Hey guys - I'm Jonah, the founder, and am more than happy to answer any questions you have.

martinald 12y ago
Love the concept. What's your email address? Would love to chat more.
- JGreenberger 12y ago
  jonah@thinkbright.co
  - spiritplumber 12y ago
    How much of your workgroup speaks Spanish? Depending on where you go, you'll have to integrate yourself into the community if you want to do business -- just showing up and "being gringos" will result in getting a cold shoulder in a lot of situations.
    - JGreenberger 12y ago
      Great point. Today, I'm actually the only team member not Mexican (and in Mexico) and continuing to grow this way is definitely a key part of the plan.

WildUtah 12y ago

I lived in parts of Mexico where solar wouldn't be a great idea because peak demand was after sundown and air conditioning was rarely wanted or used. Quite a lot of the population lives over 2000m (6200ft) elevation where the weather is cool. But I remember even decades ago that solar was already the main power source in small towns in remote parts of Coahuila and Chihuahua I used to bicycle through. Even today along the steamy coasts and northern deserts it gets plenty hot and electricity demand is driven by air conditioning. Solar would seem likely to pay off fast in Sonora, Tamaulipas, Veracruz, Jalisco, and places like that. Even better would be the orderly and steady communities of Tabasco and the Yucatan that get so hot, receive much sun, and can sustain long term investments because the local economies have remained stable while growing. But I don't recall ever reading about subsidies or utility companies paying solar customers for contributing back to the grid. Those are the two supports the solar industry loves in the USA. Without them, solar has to pay for itself in the most brutal way by just making electricity usage cheaper house by house. I wonder @JGreenberger where the most exciting region is to promote household solar, whether larger collective or unidad habitacional installations are viable, and whether there is any kind of subsidy or reverse tariff arrangement to promote solar use.

JGreenberger 12y ago
Great questions. Although there is a 100% depreciation in year one tax benefit (that's complicated to capture unfortunately), the beauty of this market is that its actually just more economic to produce energy from solar panels than buy from the grid for unsubsidized customers. Sonora, Jalisco, and many of the other locations you mentioned are great markets and very economic. The driving reason is that electricity is quite expensive when unsubsidized by the government.

spiritplumber 12y ago

I consulted for a solar company in Sicily and the biggest problem was panels being stolen - paying for protection didn't help much. It wasn't a case of people sneaking in at night and taking panels; it was a case of two dozen people driving there with flatbed trucks, calling the police and warning them to stay away lest there be a shootout, and removing the entire panel and sunchaser setup cleanly. If the situation is similar where you are working, be aware that conventional security systems won't help much. Eventually we gave up because even being able to know exactly where the panel went via hidden GPS/transmitter setups didn't do any good... local law enforcement didn't want to start a siege on our behalf and I can't blame them.

JGreenberger 12y ago
Fascinating - @spiritplumber, would you be willing to email me at jonah@thinkbright.co to discuss further? We haven't encountered this problem since we're targeting safe areas but I would love to learn more.

yeya 12y ago

Does the solar Panel eventually become property of the home owner? Is that an option? I live in Nairobi and PAYG until you own it ($35 deposit then $0.45 per day for a year) - this is mainly targeting rural off-grid (70% of East Africa) - where they spend $200 on Kerosine p.a Their main challenge is repayment - some days people forget to repay or have competing financial priorities - I think they give grace periods before remotely turning off the power.

JGreenberger 12y ago
Indeed! The customer can become the owner at some point usually between year 10 and year 20 if of interest. Also, we're fascinated by PAYG solar installations and plan on supporting them in any way we can. An awesome one in Mexico is http://ilumexico.mx/ http://ilumexico.mx/.

robzdc 12y ago

Hermosillo could be a good target, it's like 40℃ - 50℃ all f*ing year