# Why climate tech startups get this one thing wrong

- Show: [Catalyst](https://hardwarepodcasts.com/podcast/catalyst)
- Published: 2024-10-31
- Length: 49m
- Page: https://hardwarepodcasts.com/podcast/catalyst/2024-10-31-why-climate-tech-startups-get-this-one-thing-wrong

## Summary

Shayle Khan, an investor at Energy Impact Partners (EIP), discusses common pitfalls in techno-economic analysis (TEA) with colleagues Dr. Greg Thiel and Dr. Melissa Ball. They argue that startups often fail by using unreasonable inputs like assuming 100% capacity factor for renewable electricity or ignoring the cost of balance-of-system components in technologies like batteries and solar. The guests emphasize that TEAs should focus on system-level economics, realistic competitor benchmarks, and identifying critical path risks rather than achieving false precision in early-stage models.

## Chapters

- [2:02](https://hardwarepodcasts.com/podcast/catalyst/2024-10-31-why-climate-tech-startups-get-this-one-thing-wrong#t=122) Introduction: The importance of Techno-Economic Analysis (TEA)
- [9:52](https://hardwarepodcasts.com/podcast/catalyst/2024-10-31-why-climate-tech-startups-get-this-one-thing-wrong#t=592) Pet Peeve 1: Unreasonable inputs and capacity factors
- [15:53](https://hardwarepodcasts.com/podcast/catalyst/2024-10-31-why-climate-tech-startups-get-this-one-thing-wrong#t=953) Pet Peeve 2: Free waste heat and input cost assumptions
- [20:37](https://hardwarepodcasts.com/podcast/catalyst/2024-10-31-why-climate-tech-startups-get-this-one-thing-wrong#t=1237) Pet Peeve 3: Focusing on components instead of the full system
- [28:18](https://hardwarepodcasts.com/podcast/catalyst/2024-10-31-why-climate-tech-startups-get-this-one-thing-wrong#t=1698) Pet Peeve 4: Apples-to-oranges comparisons and market pricing
- [36:46](https://hardwarepodcasts.com/podcast/catalyst/2024-10-31-why-climate-tech-startups-get-this-one-thing-wrong#t=2206) Pet Peeve 5: Focusing on the wrong metrics and customer value
- [42:17](https://hardwarepodcasts.com/podcast/catalyst/2024-10-31-why-climate-tech-startups-get-this-one-thing-wrong#t=2537) Pet Peeve 6: False precision and 'modeling theater'

## Topics

- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Mechanical engineering](https://hardwarepodcasts.com/topic/mechanical-engineering)
- [Energy & climate tech](https://hardwarepodcasts.com/topic/energy-and-climate-tech)

## Most relevant to

early-stage companies

## Mentioned

- Energy Impact Partners (company)
- Dr. Greg Thiel (other)
- Dr. Melissa Ball (other)
- Shayle Khan (other)
- EnergyHub (company)
- Latitude Media (company)
- Catalyst (other)
- Prelude Ventures (company)
- IEA (other)
- First Solar (company)
- Cylindra (company)
- MSLA (company)

## Related episodes from other shows

- [From Solar’s 90% Cost Crash to AI’s Energy Surge: The Economics Driving Climate Tech](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2025-09-16-from-solars-90-cost-crash-to-ais-energy-surge-the-economics-driving-climate-tech) (Hardware to Save a Planet)
- [#408: What MedTech Startups Miss: Design Mistakes, Risk Testing & the Myth of the Quick Exit](https://hardwarepodcasts.com/podcast/global-medical-device-podcast/2025-05-26-408-what-medtech-startups-miss-design-mistakes-risk-testing-the-myth-of-the-quic) (Global Medical Device Podcast)
- [Hardware Entrepreneurs: 3 Critical Mistakes You Must Avoid](https://hardwarepodcasts.com/podcast/predictable-designs-podcast/2022-06-21-hardware-entrepreneurs-3-critical-mistakes-you-must-avoid) (Predictable Designs Podcast)
- [The Climate Hardware Playbook: Strategies for Founders and Investors with Christian zu Jeddeloh and Sophia Escheu](https://hardwarepodcasts.com/podcast/hardware-to-save-a-planet/2024-09-26-the-climate-hardware-playbook-strategies-for-founders-and-investors-with-christi) (Hardware to Save a Planet)
- [42: Blocks of Gold with LCD Displays](https://hardwarepodcasts.com/podcast/embedded-fm/2014-03-12-42-blocks-of-gold-with-lcd-displays) (Embedded.fm)

## Citing this page

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