Sunsave, a UK solar subscription service, announced a €6.3 million seed round to fund its mission to make solar power accessible to all UK households. The seed round was led by Europe’s leading impact venture capital fund Norrsken VC (Northvolt, Olio, 1KOMMA5) alongside previous investors IPGL (Elvie, Klarna), Plug and Play (PayPal, Dropbox) and angel investors Stuart Rose (Chairman of Asda), Michael Spencer (Founder of Nex Group/ICAP), Roland Rudd (Founder of Finsbury) and renowned industry leader Bill Nussey (Author of ‘Freeing Energy’), bringing the total amount raised to £9.2 million in the 18 months since inception.
The funds are being used for both product development – commercialising of the solar subscription model and product development allowing additional savings to be generated from demand flexibility – as well as growing the Sunsave team with experienced experts from the energy and personal finance sector. Recent hires include marketing director Russell Smith (previously at Monzo and Wise), chief of staff Alfie Ireland (formerly OVO Energy) and Helen Taylour (one of Bulb’s early team) as product manager.
Alick Dru, co-founder at Sunsave, said: “We’re demonstrating to UK consumers that being green doesn’t have to be a choice between doing what’s right for the environment or doing what’s best for your pocket. With Sunsave’s solar subscription you can go green and save money immediately. With energy prices expected to remain elevated for the foreseeable future, this is more important than ever.”
Ben Graves, co-founder at Sunsave, added: “We have an enormous ambition to help the country get to net zero through revolutionising green finance and making the power of solar accessible to all UK households. This significant investment round, combined with our recent FCA approval, provide a strong platform for our mission.”
Founded in 2022 by two friends who met at Oxford University, Alick Dru and Ben Graves, Sunsave aims to demystify the overcomplicated and expensive solar industry amidst soaring energy prices and the ongoing cost-of-living crisis. The business is now authorised and regulated by the Financial Conduct Authority (FCA) to provide solar panels and batteries on a subscription model, without subscribers needing to pay a hefty lump sum upfront – a major milestone in Sunsave’s mission.
With long term energy forecasts predicting energy prices to remain elevated until late 2030s, and Ofgem’s recent 5% increase to the January price cap, the need for alternate, cheaper sources of energy is clear. A recent Bloomberg Intelligence report found that solar is the energy sector’s fastest-growing sub-segment, with demand set to soar by up to 40% this year. But while 70% of UK households say they’d like to install solar, only 4% actually have, thanks to a combination of high upfront costs and a complex, hard to navigate market.
Agate Freimane, founding General Partner at impact investor Norrsken VC, added: “Sunsave’s new offering removes the biggest barrier to entry for people in the green transition: cost. This FCA-approved subscription service is a gamechanger, enabling thousands more homeowners to unlock the potential of renewable, cost-efficient solar energy every year. We’re thrilled to back Alick, Ben and the team as they help build the UK’s path to a cleaner, more sustainable future.”
Currently, the average solar energy system costs £10,270 to install – an unachievable sum when half of UK households have less than £5,000 in savings. The Sunsave model offers a unique alternative to customers – a long term subscription, with ongoing monitoring and maintenance provided through a 20-year guarantee to ensure the system’s longevity. This approach addresses a critical gap in the renewable energy market, where consumers have historically faced challenges with financing, installation quality and system aftercare. Sunsave subscribers will not only receive their solar panels and batteries but also hassle-free installation, allowing immediate energy savings with monthly payments starting from £69, and no upfront costs.
Bill Nussey, industry leader and author of ‘Freeing Energy’, commented: “There is enormous pent-up demand for rooftop solar in the UK. Sunsave has assembled a world-class team that is uniquely positioned to unlock the opportunity.”
Read the orginal article: https://www.eu-startups.com/2023/12/london-based-sunsave-bags-e6-3-million-to-launch-solar-subscription-service-in-the-uk/
