Arcadia, a climate software and data startup focused on decarbonizing the electric grid, raised $125 million in new funding to support the development of the company’s Arc platform, a technology platform aimed to help decarbonize the grid and expand its community-solar business.

Magnetar Capital and existing investor Keyframe Capital led the financing round, with participation from Macquarie Asset Management’s Green Investment Group.

The Arc platform acts as a digital layer encompassing energy data, analytics, billing, and optimization capabilities that enable real-time visibility and control over energy usage and costs. The platform allows energy innovators to create a new class of intelligent, decarbonized, automated energy experiences and products.

Arcadia’s community solar business, with around 1.3 GW of solar assets under management, is also expected to boost with the funding. The platform enables renters and homeowners to join a local solar farm and increase their energy savings.

The company has over 300 energy companies using their products to create auditable carbon accounting reports, optimize electric vehicle charging schedules, create rooftop solar and storage proposals, and deliver community solar savings on a single bill.

“Our customers are driving residential and commercial decarbonization through personalized energy solutions that couldn’t exist without easy access to utility data, tariffs, and payments,” said Kiran Bhatraju, Founder and CEO of Arcadia.

As a part of the funding deal, Eric Scheyer, Partner and Head of Energy and Infrastructure at Magnetar, will join the Arcadia Board of Directors.

In May this year, Arcadia raised $200 million to expand the Arc platform.

According to Mercom’s 9M And Q3 2022 Funding and M&A Report for Storage, Grid & Efficiency. VC funding in Smart Grid companies in 9M 2022 was 162% higher, with a record $2.5 billion compared to the $936 million raised in 9M 2021.