Solar AI co-founder Bolong Chew
Singapore-based solar-as-a-service startup Solar AI Technologies has secured US$1.5 million in a seed funding round led by Earth Venture Capital with participation from Undivided Ventures, Investible, and climate-tech angel investor David Pardo.
The funds will primarily be used to upscale its rent-to-own (RTO) solar programme in the island nation before embarking on regional expansion in the next 12 months.
Started in 2020 by Chew (CEO), Gérald Chablowski (CTO), and Luke Ong, Solar AI seeks to make rooftop solar accessible and hassle-free for smaller, underserved property owners by providing them with zero upfront cost.
Its primary product is its RTO solar programme, which enables customers to own a solar panel system with zero upfront cost, paying a flat monthly fee for installation, maintenance, servicing, and energy generation guarantee.
Compared to the traditional solar offer that demands an upfront cost of US$15,000 to US$50,000, the startup’s RTO model helps de-risk solar as a renewable energy solution, particularly in Southeast Asia, with a penetration rate of less than 1 per cent.
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Since the global energy crisis, grid electricity prices within Southeast Asia have increased by close to 30 per cent, alongside increasing policy support and market demand for renewables. However, more than 95 per cent of rooftops in Southeast Asia still do not have access to zero-upfront or leasing options for solar, which can contribute more than 200 megatons of carbon emission reductions per year.
Solar AI charges customers a fixed monthly fee (usually lower than their electricity bill savings) in the RTO model — a prominent model executed by sunrun in the US and Enpalin Germany. When a customer is enrolled in the RTO programme, he/she will get free daily monitoring and maintenance. It will then convert the ownership after the contract period.
If a customer decides to shift to a new location, the startup will assist him/her in transferring the service to the new homeowner.
“Investing in Solar AI Technologies allows Earth VC to support the hyperscaling of solar installation in Southeast Asia through the RTO model that will address pressing environmental challenges,” said Linh Nguyen, General Partner of Earth Venture Capital.
“There is a huge amount of untapped potential for both residential and commercial solar-as-a-service throughout Southeast Asia. The traction and robust pipeline Solar AI team have achieved to date is a strong indicator for their ability to be a leader throughout the region as its development continues to accelerate,” added Ben Lindsay, Investment Manager at Investible.
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Image Credit: Solar AI Technologies.
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