Decentralized Solar Energy Network Daylight Raises $75 Million to Expand Coverage
Daylight, a decentralized physical infrastructure network (DePIN) focused on creating a distributed solar energy network, has successfully raised $75 million to expand its solar coverage network across the United States. This significant funding round is a testament to the growing interest in decentralized and renewable energy solutions. By offering solar energy as a subscription-based service, Daylight eliminates the high upfront costs associated with purchasing and installing solar panels and batteries, which can cost consumers over $30,000.
The network generates revenue through its subscription-based energy service and by feeding excess energy back into the grid. Customers are incentivized to contribute to the decentralized solar network by collecting “sun points,” with plans to introduce a token in the future. This innovative approach aligns customer and business incentives, creating a robust, community-owned infrastructure that can rival legacy centralized systems. According to Daylight, prominent venture capital firms such as Framework Ventures, a16z Crypto, Lerer Hippeau, M13, Room40 Ventures, EV3, and Turtle Hill Capital are participating in the financing round.
Average solar cost per kilowatt hour for each state in the United States. Source: EnergySage
The Limitations of the Current Energy Grid
The current energy grid is facing significant challenges in meeting the demands of high-performance computing, particularly with the rise of artificial intelligence (AI) data centers and crypto mining facilities. These operations require substantial amounts of energy, putting a strain on the power grid and potentially increasing prices for consumers. According to Bloomberg, wholesale energy prices near data centers have increased by a staggering 267% since 2020.
Greg Osuri, founder of Akash Network, an open-source marketplace for computing power, warns that AI training and centralized data centers could trigger a global energy crisis. The solution lies in decentralizing the data center business by sourcing computing power from distributed sources, including consumer-grade personal computers with graphics cards and companies using industrial-grade computer processors. Tech giants like Google, Amazon, Meta, and Microsoft are already exploring alternative energy sources to power their AI data centers and reduce dependence on the grid.
The energy demand for AI data centers is expected to continue to rise in 2030. Source: IEA
A Shift Towards Decentralized and Renewable Energy
Decentralized physical infrastructure networks (DePINs) like Daylight demonstrate the potential of decentralized technology to address real-world challenges. By creating a community-owned infrastructure, DePINs can provide a more robust and resilient energy network. The introduction of tokens and incentives like “sun points” can further encourage participation and contribution to the network. As the demand for renewable energy continues to grow, innovations like Daylight’s decentralized solar energy network are poised to play a significant role in shaping the future of energy production and consumption. For more information, visit https://cointelegraph.com/news/daylight-depin-solar-energy-raises-75-million?utm_source=rss_feed&utm_medium=rss_tag_blockchain&utm_campaign=rss_partner_inbound
