Zolar, based in Berlin, has received €100 million ($105 million) in Series C funding to expand its supplier network for small solar systems in order to meet rising demand for clean energy. Germany is particularly vulnerable to the energy crisis caused by the Ukraine war because it remains heavily reliant on Russian gas imports, resulting in skyrocketing gas prices for German consumers.
And, while the country’s political leaders are under intense pressure to find ways to quickly transition to alternative energy sources in order to stop sending money to Putin’s regime, German consumers don’t appear to be waiting: According to Zolar, inquiries about installing solar systems have more than quadrupled this year, owing to rising energy prices.
Energy Impact Partners (EIP) of the United States and GIC, Singapore’s sovereign wealth fund, are leading the Series C round.
Existing investors such as Inven Capital, Heartcore Capital, Statkraft Ventures, and Pirate Impact Capital also took part.
The startup’s pitch is that it is democratizing access to solar energy and reducing complexity for consumers by providing a unique online configurator that allows homeowners to buy customized solar installations online or lease them for a small monthly fee.
According to Crunchbase, the company was founded in 2016 and had previously raised €59 million.
Its network of small solar installers recently received $23 million in funding from Ecosia, an eco-focused search engine that announced in March that it would be reinvesting a portion of its search ad profits in clean energy locally, as well as planting trees, to help accelerate Germany’s transition away from fossil fuels.
Add €100 million now, and Zolar appears to be well positioned to assist many more consumers in making the switch to clean energy.
To meet what it calls “unprecedented” demand for solar from German households, Zolar plans to significantly expand its Craft ship Partner Network currently 500 local craft businesses to 3,000 by 2025 to increase solar energy installation capacity.
It also intends to use the Series C funds to open a training center this year to address the skills gap in the renewable sector and train workers in a qualified fast-track process to meet demand for the energy turnaround.
The investment will also go toward the development of new digital energy products, with Zolar citing a smart control feature that will allow its app to recognize the best time to charge an electric car and begin charging it automatically.
“Among others the company’s app will be expanded to include an energy management system and a dynamic electricity tariff,” it writes in a press release. “The app will intelligently control the solar power supply of homeowners while maximizing their energy independence and cost savings.”
Commenting in a statement, Alex Melzer, CEO and founder, added: “Our goal is to supply 10M households in Europe with either a solar system or renewable energy by 2030. The climate crisis, energy security issues and the rising cost of fossil fuels mean we must move very quickly. By offering a fully digital experience and making it as easy as possible to get started and use solar energy, we help people go green, become energy independent and save costs.”
“There are 16 million roofs on single and two-family homes in Germany. More than 14 million of them are still without solar systems. Putting solar panels on these houses will drive Germany’s independence from coal, gas and oil,” he also noted.
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