Scenarios
BMS License: 10% of hardware ✓
Tevesa REON payments: 32.8% of revenue ✓
Tevesa net income positive from Year 3
REON Assumptions
System sizekWhCell capacityWh/cellCells per system750BMS license target %%Hardware cost/system$
Hardware Breakdown (display only)
Cells: $6,600BMS/PCB: $2,200Package: $2,200DC Side: $2,200PCS: $2,200Cabinet: $2,200Thermal: $4,400
BMS $/kWh$32.59
BMS $/system$2,444
All-In $/kWh$325.93
Monitoring Fee ($/cell/month, tiered)
Tier 1 (0–50K)$Tier 2 (50K–150K)$Tier 3 (150K–500K)$Tier 4 (500K+)$
Monitoring Operator & Revenue Share
Tevesa sells the system; REON operates monitoring and bears cloud/support/maintenance cost-to-serve. Tevesa earns a commission share of the fee.
REON share of fee%Tevesa share of fee25%MAR to REON (waived Y1)$
Cost to Serve ($/cell/month)
Borne by the monitoring operator (REON); R&D always borne by REON.
Cloud/Hosting$Support Staff$R&D Amortization$Maintenance$Total CTS$0.28
Tevesa Assumptions
Retail price/kWh$→ per system$30,000Integration cost/system$Warranty reserve%SG&A fixed base/yr$SG&A variable/system$Depreciation/yr$Interest expense/yr$Tax rate%Year 1 CapEx$
Maintenance (Tevesa-provided, recurring)
Annual fee on the cumulative deployed fleet (kWh in service). ~2% of CAPEX ≈ $12/kWh/yr.
Maintenance fee$/kWh/yrCost to deliver%
Cross-Reference from REON
REON Hardware cost/system$22,000
BMS License fee/system$2,444
Tevesa monitoring share25% of fee
Volume Model
Year 1 baseline (kWh sold):
| Year | Y2 | Y3 | Y4 | Y5 | Y6 | Y7 | Y8 | Y9 | Y10 |
|---|---|---|---|---|---|---|---|---|---|
| Growth Rate | % | % | % | % | % | % | % | % | % |
| kWh Sold | 1,500 | 4,500 | 13,500 | 40,500 | 101,250 | 253,125 | 632,813 | 949,219 | 1,091,602 |
| Systems | 20 | 60 | 180 | 540 | 1,350 | 3,375 | 8,438 | 12,656 | 14,555 |
| REON P&L | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Cumulative |
|---|---|---|---|---|---|---|---|---|---|---|---|
| kWh Sold | 500 | 1,500 | 4,500 | 13,500 | 40,500 | 101,250 | 253,125 | 632,813 | 949,219 | 1,091,602 | |
| Systems Sold | 6.67 | 20 | 60 | 180 | 540 | 1,350 | 3,375 | 8,438 | 12,656 | 14,555 | |
| Cumulative Systems | 6.67 | 26.67 | 86.67 | 266.67 | 806.67 | 2,157 | 5,532 | 13,969 | 26,625 | 41,180 | |
| Active Cells (fleet) | 5,000 | 20,000 | 65,000 | 200,000 | 605,000 | 1,617,500 | 4,148,750 | 10,476,875 | 19,969,063 | 30,885,078 | |
| Revenue | |||||||||||
| BMS License (upfront) | $16,296 | $48,889 | $146,667 | $440,000 | $1,320,000 | $3,300,000 | $8,250,000 | $20,625,000 | $30,937,500 | $35,578,125 | $100,662,477 |
| Monitoring Fee (total to customer) | $60,000 | $240,000 | $753,000 | $2,040,000 | $5,316,000 | $12,606,000 | $30,831,000 | $76,393,500 | $144,737,250 | $223,332,563 | $496,309,313 |
| REON Share of Monitoring | $45,000 | $180,000 | $564,750 | $1,530,000 | $3,987,000 | $9,454,500 | $23,123,250 | $57,295,125 | $108,552,938 | $167,499,422 | $372,231,984 |
| MAR Floor Applied | $0.00 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | $240,000 | |
| REON Monitoring Revenue | $45,000 | $240,000 | $564,750 | $1,530,000 | $3,987,000 | $9,454,500 | $23,123,250 | $57,295,125 | $108,552,938 | $167,499,422 | $372,291,984 |
| Total Revenue | $61,296 | $288,889 | $711,417 | $1,970,000 | $5,307,000 | $12,754,500 | $31,373,250 | $77,920,125 | $139,490,438 | $203,077,547 | $472,954,461 |
| Cost to Serve | |||||||||||
| Cloud/Hosting | $4,800 | $19,200 | $62,400 | $192,000 | $580,800 | $1,552,800 | $3,982,800 | $10,057,800 | $19,170,300 | $29,649,675 | $65,272,575 |
| Support Staff | $3,600 | $14,400 | $46,800 | $144,000 | $435,600 | $1,164,600 | $2,987,100 | $7,543,350 | $14,377,725 | $22,237,256 | $48,954,431 |
| R&D Amortization | $6,000 | $24,000 | $78,000 | $240,000 | $726,000 | $1,941,000 | $4,978,500 | $12,572,250 | $23,962,875 | $37,062,094 | $81,590,719 |
| Maintenance | $2,400 | $9,600 | $31,200 | $96,000 | $290,400 | $776,400 | $1,991,400 | $5,028,900 | $9,585,150 | $14,824,838 | $32,636,288 |
| Total Cost to Serve | $16,800 | $67,200 | $218,400 | $672,000 | $2,032,800 | $5,434,800 | $13,939,800 | $35,202,300 | $67,096,050 | $103,773,863 | $228,454,013 |
| Gross Profit | $44,496 | $221,689 | $493,017 | $1,298,000 | $3,274,200 | $7,319,700 | $17,433,450 | $42,717,825 | $72,394,388 | $99,303,684 | $244,500,449 |
| Gross Margin % | 72.6% | 76.7% | 69.3% | 65.9% | 61.7% | 57.4% | 55.6% | 54.8% | 51.9% | 48.9% | 51.7% |
| Monitoring Rate ($/cell/mo) | $1.0000 | $1.0000 | $0.9654 | $0.8500 | $0.7322 | $0.6495 | $0.6193 | $0.6076 | $0.6040 | $0.6026 | |
10-Yr Total Revenue
$472,954,461
10-Yr Total Gross Profit
$244,500,449
Avg Gross Margin
51.7%
MAR First Exceeded
3
Peak Monitoring Rev (Y10)
$167,499,422