Palmetto raises $375 million to accelerate clean energy independence for residences

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CHARLESTON, SC, February 24, 2022 /PRNewswire/ — Palmetto, a clean energy market leader and technology services platform, today announced that it has raised approximately $375 million to accelerate the adoption of residential solar and clean energy independence across United States. The round was led by Social Capital, with participation from new and existing investors including ArcTern Ventures, Gaingels, Lerer Hippeau and MacKinnon, Bennett & Co. (MKB).

Palmetto’s unique approach to clean energy adoption

Today, the residential solar market consists mostly of asset-intensive, low-margin business models, making the transition to a clean energy system costly for both homeowners and providers. . While residential solar represents more than $100 billion total addressable market, only 3% of the more than 70 million homes across the United States use solar energy.

Meanwhile, the United States continues to face an energy crisis on many fronts, from dependence on carbon-based fuels to struggling utility companies with aging infrastructure, existential liabilities and energy bills. rising.

By leveraging proven business models – such as third-party service marketplaces and subscription-based revenue models – Palmetto is able to maintain significantly lower operating costs than its peers and pass those savings on to homeowners, ultimately making the adoption of clean energy more accessible and affordable for Americans. .

The company takes a market-based approach to the most costly aspects of the residential solar value chain – customer acquisition and installation – by facilitating a third-party network of trained sales specialists and certified technicians. Combined with Palmetto’s proprietary software platform that handles the investigation, design, engineering, financing, licensing, maintenance and active system monitoring aspects of the transaction, the company offers a form of a complete end-to-end transaction without the operating costs of a vertical transaction. integrated provider.

As a result, Palmetto is able to offer its customers a path to clean energy independence at up to 30% less cost than its peers. This model also decouples revenue growth from operating expenses, creating a win-win-win situation for owners, Palmetto’s sales and construction network, shareholders, and the broader drive for clean energy independence. .

Palmetto will use the funds to invest in the growth of its independent contractor market, as well as the technology, people and resources needed to maintain – and over time increase – its overall operational efficiency to expand its addressable market. .

Management Comments

Chris KemperPresident, Founder and CEO of Palmetto, said, “Palmetto is the first distributed energy company built from a software foundation, allowing us to scale like no other clean energy provider and make real progress towards our mission of mitigating climate change. I honestly believe that in the same way that the cell phone fundamentally changed the telecommunications market, Palmetto has the opportunity to do the same for the centralized fossil fuel industry.”

Kemper added, “This is a major milestone not just for Palmetto, but for the entire clean energy industry. We remain focused on offering the best residential solar product on the market, which we aim to do through the seamless execution of our unique operation. We look forward to the next step in our evolution as we expand our market to include other cost-effective products and services that enable homeowners to achieve energy resilience and independence.

Chamath Palihapitiya, Founder and CEO of Social Capital, said, “Each year the energy crisis in the United States becomes more visible and urgent – utility companies are becoming even less reliable, climatic calamities have exposed our aging infrastructure and Energy prices continue to rise. Palmetto is taking a new and unique approach to the residential solar model, making it easier than ever for homeowners to become energy independent, a major step towards a sustainable energy future. We are delighted to support Chris and his team in their mission to solve one of the greatest existential threats of our generation.”

The company also announced that Chamath Palihapitiya and Nirav Tolia, co-founder and former CEO of Nextdoor, have joined Palmetto’s board of directors. They join other trustees and advisers, including Joanne Bradford (formerly Pinterest and SoFi), Monica Williams (Equity Project), Francois Suarez (Mayor of Miami), Will Szczerbiak (Greycroft), Kyle Burk (STR Services), Jared Wray (Palmetto, CTO & Co-founder), and Sean Hayes (Palmetto, founding team).

For more information about Palmetto and its products and services, please visit: www.palmetto.com.

About Palmetto
Palmetto is committed to democratizing energy by giving power and control back to consumers and encouraging them to make environmentally responsible choices. The company has developed a clean energy marketplace, with proprietary technology designed to make it easier and more affordable for homeowners to source energy from renewables like solar. Palmetto is an award-winning company and recently received the Sustainable Company of the Year Award for Best Company. For more information, visit www.palmetto.com.

About share capital
At Social Capital, we make big bets on transformational ideas, technology and people. We invest strategically in smart, for-profit opportunities and forward-thinking social investments that have the potential to shape a better future.

We do this from a permanent capital balance to support entrepreneurship at all stages. This gives us more flexibility to double our convictions, without the limitations of traditional fund structures, and gives founders the runway and resources to succeed. We believe in the outsized potential of for-profit companies to have an impact in the world. We aim to set a new standard for what capitalism can be.

To learn more about Social Capital, visit www.socialcapital.com.

SOURCE Saw Palmetto

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