Solar AI Technologies startup raised $1.5 M Seed funding from Earth Venture Capital
Solar AI Technologies, a Singapore-based startup, has just closed a $1.5 million seed round sponsored by Earth Venture Capital.
Undivided Ventures, Investible, and climate-tech angel investor David Pardo all participated in the round, according to a statement released by Solar AI Technologies on Wednesday.
The funds that were raised, according to the statement, would primarily be put to use in Singapore to scale up its rent-to-own solar program before beginning regional expansion in the following 12 months.
The Solar AI rent-to-own program enables landed homeowners and small businesses to purchase solar panel systems with no up-front costs by paying a flat monthly fee that includes installation, maintenance, and servicing as well as a guarantee that the system will produce energy.
The rent-to-own model reduces the risk associated with solar as a renewable energy source, particularly in Southeast Asia, where there is still a lack of trust in the technology and a penetration rate of less than 1%. The traditional solar offer requires an upfront cost of $15,000 to $50,000.
Grid electricity costs in Southeast Asia have increased by almost 30% since the global energy crisis, along with rising market demand and policy support for renewable energy sources.
However, leasing or zero-upfront solar options, which can reduce carbon emissions by more than 200 megatons annually, are still unavailable on more than 95% of Southeast Asian rooftops.
“I’m thrilled to see Solar AI closing the next milestone of investment, setting them up for successful growth,
“As a collaboration with ENGIE Factory since launch, we’re impressed by their track record of success, combined with their talented team, and their aspiration to disrupt the solar industry,” said Caroline Guyot, Co-Founder and Managing Director of ENGIE Factory Asia-Pacific.
More than 90% of customers, according to the start-up, will choose rent-to-own over purchasing a solar system outright.
With more than 100 rooftop solar installations finished last year, Solar AI Technologies has signed rooftop solar contracts totalling more than SGD 3 million ($2.22 million).
“Investing in Solar AI Technologies allows Earth VC to support the hyperscaling of solar installation in Southeast Asia through the rent-to-own model that will address pressing environmental challenges,
“Their visionary leadership and commitment to innovation make Solar AI a compelling investment opportunity,” said Linh Nguyen, General Partner of Earth Venture Capital.
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