SmartSolar, a Vietnam-based energy-tech startup, has obtained US$1.85 million in a seed funding round jointly led by Picus Capital and 2degrees.
Iterative also participated.
SmartSolar aims to increase the adoption of rooftop solar systems among small and medium-sized businesses (SMEs) in Southeast Asia.
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Despite the region’s abundant sunshine, only about 5 per cent of rooftops have solar panels, compared to countries like Germany, which have significantly higher adoption rates.
Within six months of its launch, SmartSolar claims to have installed almost 1MWp of capacity across numerous businesses in Vietnam and is rapidly expanding throughout the region.
Many business owners are concerned about rising electricity bills but lack the knowledge or confidence to invest in solar technology. Few banks in Southeast Asia are willing to provide loans for small-scale solar installations, and those that do often have lengthy approval processes and high interest rates.
SmartSolar addresses these challenges by offering solar systems with no upfront costs, fast approvals, and a customer-friendly approach. The company shares the savings from solar energy with its customers, ensuring mutual benefit.
Abhijay Thacker, Senior Vice President at Picus Capital, expressed enthusiasm for SmartSolar’s approach to providing clean and inexpensive power in Southeast Asia, believing it can generate significant value for customers and the environment.
Also Read: Swedish firm Trine backs Vietnamese solar energy startup Stride
Soren Wiberg Holm, Venture Lead at 2degrees, noted the surging local demand, favourable conditions, and strong policy support in Vietnam, considering the market for solar energy to be at a turning point. He also emphasised that SmartSolar is directly tackling a significant barrier to solar adoption among SMEs: access to upfront capital.
In June 2024, Stride, another Vietnamese solar energy company, secured US$3 million in a debt financing facility from the Swedish solar investment platform Trine to expand its capacity to fund customers’ clean-energy installations in partnership with local installers.
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