Interview with Jonah Greenberger CEO of Bright
No More Holding Back From Solar Energy
Listen to the podcast: No More Holding Back From Solar Energy (mexicobusiness.news)
BRIGHT
Company Overview:
- Bright is a solar energy company.
- Mission: To provide clean energy accessibly and reliably.
- Present in +200 cities with over 4700 subscribers in Mexico.
Jonah Greenberger’s Background:
Jonah grew up in the bustling city of Los Angeles, surrounded by innovation and progressive thinking. As the son of a UCLA professor who had worked on the ARPANET, the precursor to today’s Internet, he was introduced early on to the transformative power of groundbreaking technologies. This inspiration, combined with witnessing the profound impact of the Internet on society, ignited in Jonah a burning desire to make a similarly significant mark during his lifetime.
With an innate sense of responsibility towards the world, Jonah identified global warming as the most pressing challenge of his generation. A challenge he felt compelled to address head-on. To equip himself with the knowledge and skills required for this mission, Jonah pursued a background in thermodynamics at the renowned Stanford University. His academic foundation then led him to a five-year tenure at Chevron, where he delved deep into various energy technologies, further solidifying his commitment to finding sustainable solutions for the planet.
Jonah worked at Chevron for five years, looking into different energy technologies.
- Was involved in biofuels, waste management, and other energy tech projects.
- Found most of the technologies either too complex or not economically viable.
He recognized solar as a practical and scalable solution:
- Doesn’t require constant maintenance.
- Sun is a consistent and free source of energy.
- Many roofs worldwide can be potential solar energy sites.
Bright’s Mission and Operations:
Mission: Reverse global warming.
Approach: Automate the process of getting distributed solar to reduce costs and lower the risk.
Aim: Attract low-cost financing for solar installations.
Challenge: High friction, high costs, and high capital costs in deploying distributed solar globally.
Solution: Create a platform for the distributed solar sector.
- Enables access to low-cost financing.
- Continually reduces financing and installation costs.
- Partners with over 50 installers and entrepreneurs across Mexico.
- Initially focused on residential solar and then expanded to commercial and industrial solar.
- Partnered with the Inter American Development Bank for financing and with companies like Costco for deployment.
Subscription-Based Model:
Bright pioneered a new approach in the solar industry by introducing a subscription-based model, tailored specifically to address challenges within the Mexican market. One significant hurdle that stands out is the limited access to credit for Small and Medium Enterprises (SMEs). These businesses, forming a crucial segment of the economy, often find themselves underserved in this regard. By offering a subscription model, Bright not only simplifies the solar adoption process but also directly addresses the financial challenges faced by these SMEs, thus driving greater inclusivity and sustainability in the energy sector.
Bright’s Approach to Small Installations:
Bright recognized the labor-intensive nature of managing individual small-scale energy projects. From credit checks and contract drafting to equipment shipping, project interconnection, and monitoring, each task demanded meticulous attention. While observing the broader solar industry, Bright identified a growing trend: many competitors were shifting their focus to larger projects. These larger endeavors, despite requiring similar efforts as smaller ones, promised significantly higher revenue.
However, instead of following the industry tide, Bright remained unwavering in its commitment to promote distributed solar energy, particularly in the residential sector. To efficiently manage the complexities of small installations, the company strategically harnessed the power of technology. By integrating advanced software solutions, Bright has been able to streamline and automate processes, reinforcing its dedication to revolutionizing residential solar energy.
Industry values Bright’s approach:
- Reduces the need for extensive human resources for small revenue projects.
- Allows different partners to focus on their strengths, whether selling, installing, or other parts of the process.
For customers:
- Their entire solar installation process is tracked (over 100 interactions), ensuring no step is missed.
- Feel taken care of and thus qualify for a low cost of capital and enjoy savings.
Challenges & Focus Areas:
Faced challenges with very large projects, such as those involving big companies like Apple.
Found their niche in:
- Residential projects.
- Small commercial projects.
- Companies with numerous small-scale sites (like chains of stores or restaurants).
“Bright stands out as a nationwide financier and installer in Mexico.”
Importance of Automation in Solar for SMEs:
In Mexico, small to medium-sized businesses (SMBs) play a pivotal role in the economic landscape. It’s essential for these SMBs to concentrate their efforts on their primary business operations. Managing solar systems can detract from this focus. For these enterprises, automation becomes a game-changer. It allows them to harness the advantages of solar energy seamlessly, without the distractions of day-to-day solar system management. At Bright, we ensure that businesses can enjoy solar benefits without straying from their core objectives.
State of Automation & Digitization in Mexico’s Solar Sector:
A lot of automation has been added in the last decade, but more is needed.
Bright’s automation initiatives:
- Automated credit checks.
- Drop shipping of equipment aligned with design and scheduled dates.
- Automated scheduling for customers and installers.
- Ability to track customers’ energy savings and alert them about consumption changes.
Future goals for automation:
- Streamline the information collection process for underwriting.
- Easier validation of building ownership.
- Automated retrieval of energy consumption data.
Exciting prospects with AI:
- Improve customer service by providing detailed, case-specific advice.
- Use of large language models (like Zendesk records) to gather historical data and offer accurate solutions swiftly.
Silicon Valley’s Approach to AI and Data in the Solar Sector:
The data processing capacity exists; handling Bright’s data is relatively small compared to giants like Facebook.
Challenges:
- Translating vast amounts of data into actionable insights for agents.
- Large language models can process huge amounts of data but human judgment remains crucial.
- AI is seen as an assistive tool or “co-pilot” rather than a replacement for human roles.
Collaboration Between Silicon Valley and Mexico:
Bright was part of Y Combinator’s program, being its first investment in both Mexico and the solar sector.
Benefits of the collaboration:
- Bridging Silicon Valley investors to opportunities in Mexico and Latin America.
- Access to advisory networks from leading global companies.
- Leaders at Bright are mentored by professionals from companies like Uber, Google, and Amazon, speeding up their learning process.
- Interest from US operators in contributing to Latin American challenges.
- While finance and software roles are often sourced from the US, local roles in sales, marketing, support, and operations are hired across Mexico.
- Bright operates with a fully remote workforce.
Experience with Being Fully Remote:
The COVID-19 pandemic unexpectedly highlighted the viability of remote work. As the world adapted, many realized the freedom to choose their living locations without being anchored to a specific city due to employment constraints. Mexico, with its rich tapestry of landscapes, presents a compelling choice for such individuals. From the serene beaches of Puerto Escondido to the culturally rich regions of Yucatan, the country offers a breadth of experiences far removed from the urban challenges, such as traffic congestion. Embracing Mexico’s diverse environments provides not only a scenic backdrop for work but also a more enriched and balanced lifestyle.
Mexico’s Appeal for Business Ventures:
- The proximity to the US, a major consumer market, makes Mexico an attractive destination.
- Bright, as one of the early ventures from Y Combinator in Mexico, showcases the potential of the country.
- Mexico offers a combination of rich culture, favorable business conditions, and opportunities for impact and growth.
Adapting to Mexico’s Changing Energy Landscape:
Mexico’s regulatory environment for renewable energy has indeed experienced shifts in recent years. These changes have influenced both incentives for renewable energy and the broader market dynamics.
Adaptation:
- At Bright, we’ve always placed a premium on flexibility and agility. Recognizing that regulatory landscapes can be fluid, especially in emerging markets, we’ve built our operational models to be adaptable.
- We’ve also engaged actively in dialogues with policymakers, industry associations, and other stakeholders to both understand the implications of these changes and advocate for an environment conducive to renewable energy growth.
Strategic Direction:
- While changes in policy can influence short-term tactics, our strategic direction, anchored in our mission to provide sustainable energy solutions, remains consistent. We believe in the long-term viability and necessity of solar and renewable energy, and that conviction drives our long-term strategy.
- Despite regulatory headwinds, we’ve been proactive in identifying alternative incentives and mechanisms to support solar adoption among our customers.
Serving Customers:
- In light of regulatory changes, we’ve taken steps to further educate our customers about the evolving landscape. This helps them understand both the challenges and opportunities present in the market.
- We’ve also diversified our product and service offerings to provide more holistic energy solutions, ensuring that regardless of regulatory changes, we can meet the energy needs of our customers efficiently and cost-effectively.
- Finally, we’ve continued to invest in technology and data analytics. By better understanding consumption patterns, technology trends, and market dynamics, we can offer tailored solutions that cater to the specific needs of our customers.
In essence, while regulatory changes can present challenges, they also offer opportunities for innovation and evolution. By staying committed to our mission and being nimble in our approach, we believe we can continue to serve our customers effectively and drive the adoption of renewable energy in Mexico and beyond.
The shift in global manufacturing dynamics presents a unique opportunity for Mexico. Given the current U.S.-China dynamics, Mexico’s proximity to the U.S., and its evolving manufacturing capabilities, the nation is poised to play an increasingly central role in global supply chains.
Energy Demand and Mexico’s Role:
- Manufacturing Growth: The growth in manufacturing in Mexico is a double-edged sword. On one hand, it presents economic opportunities; on the other, it brings with it increased energy demands. Efficiently addressing these energy needs is crucial to ensuring the sustainability and competitiveness of Mexican manufacturing.
- Sustainable Energy: As global corporations place increased emphasis on sustainability — both due to consumer demand and regulatory pressures — the need for clean energy in manufacturing becomes paramount. Mexico’s potential in solar and wind energy can be harnessed to serve these needs.
- Infrastructure Development: While energy is a focal point, it’s just one facet of the broader infrastructure needs. Robust infrastructure — from transportation to logistics to energy — will be essential to support and sustain manufacturing growth.
- Attracting Investment: Given the anticipated energy demands, there is a significant opportunity to attract investments into the energy sector. By providing favorable policies and ensuring a stable regulatory environment, Mexico can position itself as an attractive destination for energy investments.
- Collaboration with Big Players: Partnering with large corporations, like Ford, Audi, and Apple, can facilitate the development of green energy solutions tailored to their manufacturing needs. Their sustainability mandates can serve as a driving force in advancing Mexico’s green energy infrastructure.
- Decentralized Solutions: Distributed energy resources, like solar installations at manufacturing sites, can play a significant role. By decentralizing energy production, manufacturers can ensure a consistent energy supply while also contributing to sustainability goals.
In conclusion, the potential shift of manufacturing from China to Mexico underscores the importance of a robust and sustainable energy infrastructure in Mexico. By proactively addressing energy demands and aligning with the sustainability goals of major corporations, Mexico can solidify its position in the global manufacturing landscape. This, in turn, will have ripple effects across its economy, from job creation to technological advancements.
“By proactively addressing energy demands and aligning with the sustainability goals of major corporations, Mexico can solidify its position in the global manufacturing landscape.”
The emphasis on transitioning to solar energy and the meticulous approach toward reducing friction, costs, and ensuring the quality of installations is apparent in Jonah’s vision. His perspective is founded on strategic timing, trust-building, and consistent improvement in the solar energy sector.
Key Points from Jonah’s Final Statements:
Timing and Savings:
- There’s a current advantage in transitioning to solar, where immediate savings outweigh the potential future benefits of waiting as solar technology costs continue to decrease.
Building Trust and Accountability:
- A scoring system that rewards top-performing partners ensures the delivery of quality services. The encouragement of a competitive environment where the best get better is seen as a way to enhance industry standards.
Knowledge Sharing and Continuous Learning:
- Jonah values continuous learning and improvement, recommending resources like Paul Graham’s essays, books, and podcasts that have personally and professionally benefitted him and his team.
An Optimistic Outlook for Mexico:
- There’s a significant opportunity for entrepreneurial and manufacturing growth in Mexico, with an openness to partnerships that align with this vision.
Public Engagement and Societal Demand:
- Public demand for accountability and sustainability plays a crucial role in driving the transition to solar and other sustainable practices.
Jonah’s enthusiasm and belief in the potential growth and impact of the solar industry in Mexico is palpable. His insights reflect a thoughtful approach to navigating the challenges and uncertainties that come with operating in the energy sector, fostering partnerships, and enabling a broader ecosystem. This strategic approach, coupled with a perspective of continuous improvement and adaptability, positions his endeavors for meaningful contributions to Mexico’s economic and sustainable development.
TL;DR
Introduction:
- Jonah Greenberger of Bright discusses the future of Mexico’s energy sector.
- Solar energy is seen as both a technological and societal transformative force.
Challenges & Strategies in Solar Energy:
- Challenges: Capital markets influence and regulations.
- Importance of strategic flexibility and smaller projects for success.
- Bright’s strategy: Understanding residential solar and aligning with government goals.
Mexico’s Energy Sector Landscape:
- Mexico poised to become a leading manufacturing center.
- Drivers: Economic benefits of labor and strategic location.
- Emphasis on sustainable, cost-effective energy for growth.
Navigating Uncertainties & Opportunities:
- Key focus: Strategic agility, consumer alignment, and engagement with regulators.
- Goal: Align with consumer needs, governmental objectives, and sustainable practices.
Advice for Solar Energy Transition:
- Emphasis on immediate benefits of solar energy.
- Advise: Overcome inertia, focus on value, trust, and continuous improvement.
Final Thoughts & Future Vision:
- Jonah’s optimism on Mexico’s manufacturing and entrepreneurial potential.
- Vision of partnership and innovation in the solar energy sector.
Conclusion:
- Jonah highlights challenges and opportunities in Mexico’s solar energy sector.
- Strategy emphasizes flexibility, value, and partnership for sustainable development.
