# Financial Model Game plan - Q2

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# **🎯 The 3 Goals**

1. **Microgrid unit economics model**
2. **Fundraising narrative**
3. **Stress test your monetization models (Owned vs Partner)**

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# **🧭 Phase 1 (Week 1–2): Build Financial Clarity (Foundation)**

## **1) Microgrid Unit Economics Model**

### **What you’re building**

<span class="s3">A </span>**per-site financial model**<span class="s3"> that answers:</span>

> “If we deploy one microgrid, does it make money?”

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## **Step 1: Define core inputs**

Start simple (don’t overcomplicate):

### **Costs (CapEx)**

- Battery (e.g., 10kWh setup)
- Inverter
- Installation (+20%)
- Metering hardware
- Any fixed setup costs

### **Revenue**

- Avg monthly revenue per household
- Number of households (e.g., 10 → 100 → 360)
- Tariff (or effective price per kWh)

### **Operating costs (OpEx)**

- Maintenance
- Staff/ops allocation
- Platform/software (NFE OS)
- Losses / non-payment buffer

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## **Step 2: Build outputs**

You want 5 key metrics:

- Monthly revenue per site
- Monthly profit
- Payback period (months)
- Gross margin (%)
- Cash flow over time

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## **Step 3: Answer key questions**

- How long to recover CapEx?
- What happens if:
    
    
    - Usage drops 20%?
    - Costs increase 15%?
- <span class="s1">What is your </span>**minimum viable scale per site**<span class="s1">?</span>

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## **Deliverable**

👉 A simple Google Sheet model (I can help you structure this next)

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# **🧭 Phase 2 (Week 2–3): Stress Test Your Two Models**

Now apply the model to your two strategies:

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## **Model A: NFE-Owned Microgrid**

### **What to evaluate**

- Total capital required per site
- Revenue collected directly
- Payback period
- Cash constraints (how many sites you can deploy)

### **Key insight you want:**

> “How fast can we scale before we run out of cash?”

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## **Model B: Partner-Owned Microgrid**

### **What to evaluate**

- Your revenue:
    
    
    - Flat fee per customer
    - +5% of electricity sales
- Your costs:
    
    
    - Ops + maintenance

### **Key insight:**

> “Is this a high-margin, low-capex business?”

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## **Compare side-by-side**

<table id="bkmrk-metric-nfe-owned-par"><thead><tr><th>**Metric**

</th><th>**NFE-Owned**

</th><th>**Partner Model**

</th></tr></thead><tbody><tr><td>Capital required

</td><td>High

</td><td>Low

</td></tr><tr><td>Margin

</td><td>High (long-term)

</td><td>Lower but steady

</td></tr><tr><td>Risk

</td><td>Higher

</td><td>Lower

</td></tr><tr><td>Speed of scale

</td><td>Slower

</td><td>Faster

</td></tr></tbody></table>

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## **Strategic output**

You should be able to say:

- “We lead with Partner model to scale fast”
- or
- “We prioritize Owned model for long-term value”

<span class="s2">👉 This becomes </span>**core to your pitch**

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# **🧭 Phase 3 (Week 3–4): Build Your Fundraising Narrative**

Now turn your numbers into a <span class="s3">**story investors understand**</span>

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## **1) Problem (you already do this well)**

- Unreliable grids
- Diesel backup risks
- Growing urban demand

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## **2) Solution (tighten this)**

- “Community microgrids that turn backup power into primary infrastructure”

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## **3) Business Model (now backed by numbers)**

Use your model to clearly show:

- Revenue per site
- Margin
- Payback

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## **4) Traction**

- Pilot (10 homes)
- Phase 2 (100 homes)
- Pipeline (360 apartments)

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## **5) Scaling Strategy (THIS is key)**

From your analysis:

Example:

- Phase 1: Pilot + validate
- Phase 2: Scale via partner model
- Phase 3: Selectively own high-value sites

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## **6) Use of funds**

Your model should let you say:

- “$300K deploys X sites”
- “Each site generates $Y/month”
- “Break-even in Z months”

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## **Deliverable**

👉 A clean 8–10 slide pitch (or 1–2 page memo)

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# **🧭 Phase 4 (Week 4–6): Add Financial Discipline**

This replaces what a CFO would start doing.

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## **1) Monthly financial tracking**

Track:

- Revenue per site
- Cost per site
- Collection rates
- Downtime

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## **2) Define 5 core KPIs**

For NFE, I’d suggest:

- Revenue per customer
- Cost per customer
- Payback period per site
- System uptime (%)
- Collection efficiency (%)

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## **3) Cash planning (critical)**

Build a simple view:

- Cash today
- Monthly burn
- Months of runway

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# **⚠️ Critical mindset shift**

You’re moving from:

> “We are building microgrids”

to:

> “We are deploying capital into energy assets that must return money”

That shift is what investors care about.

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# **🧩 How this all connects**

- **Unit economics → proves viability**
- **Model comparison → defines strategy**
- **Narrative → unlocks capital**
- **Tracking → sustains growth**