I am bullish regarding TSLA and SCTY especially in terms of their DemandLogic product. Since utility "Demand Charges" generally represent 30 percent of commercial and industrial customer electric bills, Tesla Energy and SolarCity should be able to leverage their DemandLogic product into substantive revenue streams. In my view, this opportunity hinges on the ramp of the Gigafactory. Electric bills are maddeningly complex. At any given moment, the energy use in a commercial building can be driven by weather, occupant behavior, and equipment issues. By design, electric utilities layer a web of charges that vary by time of day, day of week, and season. Determining the true cost of your electricity use can be daunting. At a base level, utilities bill commercial and industrial customers for electrical power consumption, and demand. To use an analogy, think about consumption as the number on your car’s odometer, telling you how far you’ve driven, Think of demand as the instantaneous reading on your speedometer. Consumption is your overall electricity use, and demand is your peak intensity, or “maximum speed”. Consider a large industrial facility with lighting, HVAC loads, process equipment and associated motors all being turned on at the same time as the business first opens. The momentary demand as lights come on, AC units start up, and motors, compressors, and pumps begin to spin can result in a tremendous spike in the load (in demand terms “maximum speed or peak demand”). The utility supplying this load, must have the generation, transmission, and distribution equipment online to service this peak demand, if only for a short duration. This is the basis of utility “demand charges”. Demand charges represent substantive revenues for all electric utilities. In contrast, they are the soft underbelly of electric utility business models, and present strong opportunities for disruptive solar companies and customer self-generation. Utility infrastructures like the power poles that deliver electricity are literally rooted into the earth. The inability of their business models to move and adapt is vested in the maintenance of the status quo. The catch-phrase “corporate agility” is used to describe innovative firms employing disruptive technology, young lions seeking to overtake aging business paradigms. Solar power companies are combining different technologies like solar power generation and energy storage (battery) systems to provide customers with alternatives to both utility consumption and demand charging. Battery energy density has averaged a 7 to 8 percent improvement each year for more than forty years. While battery developments have occurred in fits and starts, the long term trend has seen energy density double about every 10 years. This trend in battery performance is apparent in power tools, laptop computers, cellular telephones and a wide range of other consumer electronic products. In the automotive industry, Tesla Motors is building sedans which travel more than 300 miles on a single charge, while their sports cars are capable of 400 miles. These same Tesla battery systems are being repackaged into residential, commercial, industrial and utility storage systems. These powerful storage systems are being combined with solar systems and digital controllers. Working as a system they give businesses the capability to manage their internal power flows. Solar PV systems generate electricity which is stored in a battery system. The digital controllers utilize intelligent software to draw on this stored power at times of peak load, reducing or eliminating utility “demand charges”.