TEA Readiness Levels (TEA-RL)

TEAs should be built layer-by-layer, right-sized to where you actually are. Don’t try to build a TEA-RL 4 model when you’re at TEA-RL 1 — start with the basics and add fidelity as your venture matures.

The Four Levels

Level

Focus

What it looks like

TEA-RL 1

Basic process concept

Block flow diagram, rough market sizing (2–3 approaches), core technology stoichiometry mapped out

TEA-RL 2

First-pass economic picture

End-to-end model, rough sensitivities, financial layer, waterfall & tornado visuals

TEA-RL 3

Robust model for internal decisions

Detailed process flow, deep-dive sheets, advanced sensitivities, elements to orient external users

TEA-RL 4

High fidelity for advanced external diligence

High-fidelity data validation, market comparisons, detailed team-specific scenarios

How to use this framework

Start by identifying your current TEA-RL. If you’ve never built a TEA before, you’re at TEA-RL 1. The question isn’t “what’s the best possible model I could build?” — it’s “what’s the right model for the decisions I need to make right now?”

Each level builds on the last. A TEA-RL 2 model includes everything from TEA-RL 1, with added economic depth. A TEA-RL 3 model includes everything from TEA-RL 2, with the kind of granularity needed to defend assumptions with investors and partners.

The worked example

The TEA-RL framework includes a worked example — a reference TEA built in Excel that shows what each level looks like in practice, using NREL’s corn stover TEA as a baseline.

Download the framework ↗