Global Energy Issues

In recent years, AI applications have become increasingly prevalent across various fields due to innovation and widespread adoption of AI technology. This has led to an exponential growth in computing power demands, resulting in unprecedented energy consumption rates. In the future, dependence, and demand for energy will only increase, making the generation of sufficient and sustainable energy an issue that cannot be ignored.

According to the International Energy Agency (IEA) report, annual investments in renewable energy development have steadily increased. By 2022, the investment amount had doubled compared to 2014, signaling significant progress in the sector. However, power transmission system construction has stagnated over the past decade. Strikingly, over 1.5 trillion watts of renewable energy projects—a power scale five times that of global wind and solar power combined in 2022—are currently awaiting grid connection. The existing transmission system must double its capacity to integrate these renewable energy sources and meet future power demands. This expansion is estimated to take 5 to 15 years and cost $600 billion annually. These expenses will inevitably be passed on to consumers through higher electricity prices. Moreover, there remains considerable uncertainty about the feasibility of constructing these new transmission facilities.

To address the energy shortage problem, Daylight integrates distributed energy resources. It utilizes blockchain’s high transparency and token incentive mechanisms to encourage individuals to contribute to their home energy facilities to the power supply network.

Daylight’s Solution

Daylight proposes the concept of DeGEN (Decentralized Generative Energy Networks), advocating for the construction of a decentralized power supply network that shifts energy production from centralized large power plants to the consumer end of the network. Consumers can use household energy equipment to produce electricity for self-sufficiency and store excess power or output it for others. Through this community-based power network, DeGEN shares the task of energy production, enhancing the overall stability, security, and sustainability of the power system while significantly reducing power transmission costs.

Daylight offers a range of home energy products, including solar panels, energy storage batteries, and heat pumps (including water heaters). These can be tailored to users’ needs, addressing issues like uneven indoor temperatures, humidity imbalances, and poor ventilation. They protect interiors from external weather, enhance comfort, and boost energy efficiency by reducing waste. All these products integrate into a single energy management system. Users can simply open the Daylight App on their smartphones to connect with all their home energy devices, monitor current energy production and usage, optimize home energy efficiency, lessen reliance on centralized power networks, and even supply surplus electricity to others.

Daylight partners with local installation contractors, electrical equipment manufacturers, and inspectors for hardware setup. Users simply provide their home energy details through the App. Daylight then crafts a personalized energy upgrade plan based on the user’s needs, automatically calculates potential savings, and coordinates with partnering vendors to manage licensing, installation, inspection, and 24/7 monitoring—streamlining the entire process for users. Currently, the service area is limited to Texas, Pennsylvania, and New Jersey in the United States.

Daylight’s Reward Mechanism

While Daylight’s vision of building a distributed energy network is ambitious and could alleviate the current energy crisis, users need incentives to participate. To address this, Daylight offers a cash-back program that covers installation’s “soft costs”—expenses excluding hardware—and returns them to users in cash. Through this program, users can receive thousands of dollars in rewards, reducing installation costs by over 50% compared to other companies. Moreover, Daylight’s products qualify for U.S. federal government incentives, allowing for investment tax credits that save users 30% on installation fees. These benefits make Daylight’s offerings highly competitive in pricing.

In addition to cash back, users can earn Daylight Points through various activities: daily check-ins, connecting devices, producing energy, completing community tasks, and using referral codes. These platform-specific tokens can’t be transferred between users and are only obtainable by upgrading home energy equipment or engaging with the platform. Once users accumulate enough points, they can exchange them for Daylight’s products and services in the marketplace. This system encourages active participation and point-earning to maximize benefits.

Daylight’s official documents have not yet disclosed token-related reward mechanisms. The first phase of the testnet primarily focuses on various preferential pricing schemes to lower the installation threshold for home energy equipment, aiming to attract more users to Daylight’s power supply network. However, Daylight plans to deploy the Daylight Protocol in the future. This protocol will integrate off-chain power networks and tokenize them, enabling electrical energy to be traded freely—similar to carbon credits—without government or institutional monopolies.

Daylight’s Team Background and Funding Status

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Daylight’s core team consists of industry veterans with extensive experience in the energy sector. Their expertise spans designing power plants and supply networks, managing large-scale bank power transactions, constructing sizable energy storage batteries, and advising major energy companies on billion-dollar financing and acquisitions. The team has installed over 800 megawatts of solar and energy storage systems.

Co-founder and CEO Jason Badeaux has years of experience investing in the energy industry. The other two co-founders, Dallas Griffin and Udit Patel, have extensive experience in power trading and operating New York’s power supply network, respectively, with rich experience in energy innovation and construction.

Daylight raised $12 million in two funding rounds in 2022 and 2024, with investors including a16z, Lattice Capital, Lerer Hippeau, Framework Venture, and others.

Conclusion

Daylight integrates personal home energy devices to offer a decentralized solution to today’s energy challenges. With the global energy demand projected to rise, Daylight demonstrates considerable potential to shape the future energy landscape. While the project is currently in its initial testnet phase and has yet to launch its on-chain products, Daylight’s strategic combination of DePin and RWA concepts (two popular Web3 narratives) positions it as a noteworthy venture for ongoing observation and analysis.