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Palmetto is dedicated to energy democratization by restoring power and control to consumers and inspiring them to make environmentally responsible decisions
Fremont, CA: Palmetto, a leading clean energy marketplace and technology services platform, announced today that it had raised $375 million to accelerate residential solar adoption and pure energy independence across the United States. Social Capital led the round, with participation from new and existing investors such as ArcTern Ventures, Gaingels, Lerer Hippeau, and MacKinnon, Bennett & Co. (MKB).
Palmetto's Unique Approach to Clean Energy Adoption
Today's residential solar market is dominated by asset-heavy, low-margin business models, making the transition to a clean energy system prohibitively expensive for both homeowners and providers. As a result, even though residential solar represents a more than $100 billion total addressable market, only 3 percent of the more than 70 million homes in the United States use solar energy.
Palmetto can maintain significantly lower operating costs than peers by leveraging proven business models, such as third-party services marketplaces and subscription-based revenue models, and pass those savings on to homeowners, ultimately making clean energy adoption more accessible and affordable for Americans.
By facilitating a third-party network of trained sales specialists and certified technicians, the company takes a marketplace-based approach to the most expensive aspects of the residential solar value chain – customer acquisition and installation. When combined with Palmetto's proprietary software platform, which manages the transaction's survey, design, engineering, financing, permitting, maintenance, and active system monitoring, the company provides a complete end-to-end transaction platform without the operating expenses of a vertically-integrated provider.
As a result, Palmetto can provide its customers with a path to clean energy independence at a cost up to 30 percent lower than its competitors. This model also decouples revenue growth from operating expenses, resulting in a win-win-win scenario for homeowners, Palmetto's network of sales and build members, shareholders, and the broader transition to clean energy independence.
Palmetto will use the funds to expand its independent contractor marketplace, as well as the technology, people, and resources needed to maintain – and eventually grow – its overall operating efficiencies to broaden its addressable market.
