Palmetto’s digitally enabled end-to-end platform creates efficiencies along every step of the residential solar ownership process
South Carolina-based Palmetto gained another big boost this week via a $150 million growth investment from TPG Rise Climate, part of the global impact investing platform TPG Rise. The funds will be used to advance the adoption of clean energy, particularly in the area of residential solar across the U.S.
Palmetto’s aggressive growth plans that gained investor support are due to its success in out-competing its solar market peers. They achieved this by having 30% lower costs in serving their customers. Their model includes a third-party network of trained sales specialists and certified technicians, supported by its proprietary software platform.
“Palmetto’s values center around our customer-first focus. We’ve been working hard to reduce consumer costs, drive transparency and deliver a delightful consumer experience,” said Chris Kemper, Founder and Chief Executive Officer at Palmetto.
Kemper founded the company in 2010 following an initial venture located in the United Kingdom that was also in the clean energy space. He re-incorporated the company in the U.S., focusing on the residential solar market. He then grew the company over eight years into a vertically integrated residential solar company. His experience led him to innovate his model to create an energy-as-a-service model.
Leveraging its digital technology platform Palmetto now provides an “end-to-end residential solar process” that “manages the survey, design, engineering, financing, permitting, maintenance, and active system monitoring aspects of the transaction”. The platform avoids the operating expenses associated with vertically-integrated providers.
Palmetto views its partnership with TPG Rise Climate as more than investment-based. TPG Rise Climate brings a range of resources comprised of: TPG’s investing professionals, the strategic relationships that are in TPG’s portfolio of climate-focused companies, and a global network of executives and advisors.
“TPG Rise Climate not only has deep experience across the clean energy supply chain, but this capital will also help us leapfrog some of our consumer product lines where we feel the market competition isn’t serving the consumer as optimally as they deserve,” said Kemper. Both Palmetto and TPG Rise Climate see these synergies that will accelerate the clean energy company’s growth.
Palmetto is seizing the opportunity that their commitment to digital technology is bringing them. They are targeting the residential solar market that is currently populated with asset-heavy, low-margin business models. The clean energy company sees those providers as hurdles for residential customers to make the switch to a clean energy system—that Palmetto offers them at lower prices.
Palmetto’s leadership team and its investors are highly motivated to scale the company to take early market share in a $100 billion plus total addressable residential solar market. Currently, only 3% of the over 70 million homes have converted to solar energy that bodes well for the global impact investment made by TPG Rise Climate.
