General Questions

There are legal reasons why we structured it this way and the main reason is regulation within the Texas ERCOT (Energy Reliability Council of Texas) marketplace.  ERCOT is the governing body of electric in Texas.  There are business functions we have planned and having the homeowner or residential battery customer own the battery asset will be critical to our structure.

The cryptocurrency marketplace is extremely volatile at the moment.  We do not want to gamble the success of our company on a cryptocurrency, such as Bitcoin or Ethereum, that could drop in value and not give us enough runway to build our product until the next funding round is required.  VPP token will be an asset based token and will have associated real world value beyond us just creating a digital or tokenized asset and marketplace.  VPP is not a cryptocurrency rather it is a digital asset.

Under the United States SEC (Securities Exchange Commission) regulation, Reg D 506(c), only US accredited investors may participate.  US accredited investors will need to pass KYC (Know Your Customer) and AML (Anti-money Laundering) requirements before we accept any investor funds.  Illum Applied Technologies, Inc. and Virtual Power Plant, LLC. will provide the necessary weblink for accredited investors to fill out to be accepted into our SEC compliant offering.

#1 reason is speed and ability to accept micropayments.  We have waited years to launch our offering until the proper base platform to build on was available.  Payment in the electricity space cannot be excessive and speed is of utmost importance.  We feel that Hedera Hashgraph aligns with our future goals

No.  VPP will be built on a public and permission network.  There are many national security issues that directly relate to the security of the United States Electric Grid.  We will tirelessly work with appropriate government entities to ensure robustness of our network.

There will be two tranches of subsidizes.  1st tranche is for 1000 batteries and will take approximately one year to build out.  2nd tranche is for 5000 batteries and will take one more additional year to build out.

In our opinion, to rapidly build out MVP (Minimum Viable Product) or POC (Proof of Concept) in Dallas/Fort Worth metroplex, we feel this incentivizes early adopters of our network.

Investors will receive tokens (VPP) which represent a fractional interest of the initial 6000 subsidized batteries.  Investors will also be part of a SAFE (Secure Agreement for Future Equity).  There will be a conversion date where the SAFE converts to parent company stock of Illum Applied Technologies.  This is a dual finance mechanism rewarding investors in both companies.

Our 10 year plan is to deploy 200,000 Tesla Powerwall 2s or equivalent and this will give our network a 1000 MW or 1GW virtual power plant.

In order to keep building more sustainable energy production, such as wind and solar, we need more storage to “calm” or level out the peaks and valleys of production.

Currently, we plan to focus on Tesla Powerwall 2.  However, we are technology agnostic and if a stronger or cheaper alternative becomes available, we will evaluate it at that time.

Yes.  We will evaluate home size and requirements and correctly match system to home needs.

Energy storage, such as a Tesla Powerwall 2, is an illiquid asset currently.  We want the people to own and benefit from having this asset therefore we will create a marketplace to monetize and trade the asset of the network kW base we build.

Inelasticity or price volatility in the US electric markets is currently over $45B per year.  If nothing is done with this over the next 20 years, it is almost a $1 trillion dollar opportunity.  Instead of money being “lost” or going to electric traders, we can divert this money into infrastructure to take the inelasticity out of the market.  As VPP tokens gain marketshare by reducing the inelasticity, Illum believes the value in VPP will increase.

Dallas/Fort Worth in 2017 had almost 50k new home builds and was the fastest growing and largest market in the United States.  We are currently working to build partnerships with area home-builders to add our product into new construction builds.

Currently, yes.  New home builds will allow us faster deployment.  We plan to revisit this strategy to include older home retrofits once we build our initial base virtual power plant goal is met.

Our Founder has always been a disruptor.  The Illum/VPP Founder, Michael Beitler, worked in new home construction in summers during his post high school education path.  Following obtaining his degree, he worked at IBM and Texas Instruments for a combined 30 years where he was in equipment and process engineering and had to install, improve, do maintenance and fix semiconductor equipment.  This semiconductor equipment included ion implanters, PVD (physical vapor deposition) metal tools, CVD (chemical vapor deposition) dielectric tools as well as many other equipment used to build computer chips.

This took several years and many conversations.  We know the size of this opportunity and realized our team had to be powerful in order to bring our product to market and to customers.  We have a very diverse and wide range of core team members who share our common vision and goal in changing the future of energy.