Tackling Solar's Split-Incentive Problem with Software (with Charlotte Meerstadt @ Fram Energy)

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Disclaimer: For full disclosure, Fram Energy is a portfolio company at Climate Capital. Our guest host, Rama Myers, is a Co-founder & COO of Aerofuse, which is one of our portcos.

CC Pod is not investment advice and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any investment decision.

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In this week’s CC Pod episode, let’s join Rama Myers and guest Charlotte Meerstadt, CEO and Founder of Fram Energy, as they discuss how Fram Energy is solving the solar adoption challenge in rental properties, splitting savings between tenants and landlords.

Charlotte’s journey to founding Fram Energy is both inspiring and rooted in personal experience. With a background as an R&D engineer at one of the Netherlands' national labs and an MBA from Stanford, Charlotte had a unique blend of technical expertise and business acumen. Her entrepreneurial journey began when she encountered the inefficiencies and challenges landlords face in managing energy consumption and sustainability within their properties. This led her to identify a significant gap in the market for solutions that could bridge the interests of landlords and tenants while promoting energy efficiency.

Fram Energy is tackling the decarbonization challenge head-on with a software system designed to split solar savings between tenants and landlords. This approach not only incentivizes property owners to invest in solar energy but also allows tenants to benefit from reduced energy costs. The company's mission is to make the adoption of renewable energy as seamless and beneficial as possible for all parties involved.

Charlotte shared that the journey of developing Fram Energy's solutions was not without its hurdles. As a solo founder, she faced the daunting task of building a company from the ground up. However, her determination and the support from mentors and industry experts helped her navigate these challenges. One key to her success has been fostering a motivated and mission-driven team, which has been pivotal in driving the company's growth.

One of the significant regulatory challenges Fram Energy faces is the highly regulated field of residential energy. Charlotte discussed how the Inflation Reduction Act (IRA) has impacted their business model, providing both opportunities and hurdles. The company has had to adapt its strategies to align with regulatory requirements while ensuring that their solutions remain effective and attractive to their clients.

Finding the first customers is often the most challenging phase for any startup, and Fram Energy was no exception. Charlotte leveraged a combination of networks, including investors, Stanford connections, and local events, to introduce Fram Energy to potential clients. This grassroots approach has proven effective, allowing the company to build a solid customer base and gain valuable insights from early adopters.

User feedback has played a crucial role in the development of Fram Energy's products. Charlotte recounted how initial feedback from test tenants led to significant improvements in their software system. By simplifying their messaging and focusing on what truly mattered to tenants, Fram Energy was able to create a more user-friendly and effective solution. This iterative process underscored the importance of getting products in front of real users as soon as possible to validate assumptions and make necessary adjustments.

As Fram Energy continues to grow, it faces both challenges and exciting opportunities. The real estate industry, traditionally slow to adopt new technologies, is beginning to recognize the importance of sustainability and energy efficiency. This shift, driven by external pressures and a growing awareness of climate issues, bodes well for Fram Energy's future.

For those interested in learning more about Fram Energy and staying updated on their journey, Charlotte encourages following the company on LinkedIn and visiting their website, framenergy.com.

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