Sunsave, a UK-based solar subscription service provider, has raised £5.4 million (~$6.79 million) in funding to support the launch of Sunsave Plus, a service that will allow homeowners to get a solar and battery system on a subscription without paying a one-off lump sum.
The company aims to make solar power accessible to UK households through subscription services, considering that most cannot afford the lump sum solar system cost.
An average solar system costs £10,270 (~$12,906), and half of UK households have less than £5,000 (~$6,283) in savings, making solar subscriptions the most viable alternative, the company said.
The funding round was led by Norrsken, a European-based impact venture capital fund that has previously invested in other green businesses such as Northvolt and 1KOMMA5.
The round brings the company’s total funding to over £9.2 million (~$11.56 million) in 18 months. The investor list includes Norrsken, IPGL, Plug and Play, Stuart Rose, Chairman of Asda, Michael Spencer, founder of Nex Group, Roland Rudd, Founder of Finsbury, and Bill Nussey, the author of ‘Freeing Energy’.
The subscription model involves Sunsave installing solar modules and batteries at customers’ homes for free. The customers will pay a monthly fee for the system’s installation, maintenance, and warranty. The excess energy generated from the systems will be fed into the grid.
Sunsave has received Financial Conduct Authority (FCA) approval for its subscription service.
Agate Freimane, founding General Partner at Norrsken, said, “Sunsave’s new offering removes the biggest barrier to entry for people in the green transition: cost. This FCA-approved subscription service is a game-changer, enabling thousands more homeowners to unlock the potential of renewable, cost-efficient solar energy every year.”
According to Mercom’s 9M and Q3 2023 Solar Funding and M&A Report, in 9M 2023, venture capital funding activity rose 4% year-over-year, with $5.7 billion in 51 deals compared to the $5.5 billion raised in 72 deals in 9M 2022.
Recently, Solfium, a solar-tech company, raised $3 million in seed funding at the Bolsa Institutional de Valores (BIVA), Mexico’s second-largest stock exchange, focused on technology and supported by Nasdaq. The funding will be used to expand its operational capacity, invest in technology, and improve its sales pipeline.
