Residential photo voltaic market Palmetto finalized a $150 million funding from TPG Rise Local weather. The announcement from Palmetto is a part of the corporate’s push into increasing its software program and expertise platform, which helps people, small enterprise, and enormous firms entry and develop within the clear power economic system. Further phrases of the funding weren’t disclosed.
Palmetto manages the end-to-end residential photo voltaic course of. Its working platform handles gross sales, design, engineering, allowing and success. For installers, Palmetto presents a path to cut back delicate prices, which oftentimes signify over 50% of every residential photo voltaic undertaking, utilizing automated workflows, predictive algorithms, and native intelligence knowledge.
Launched in 2021, TPG Rise Local weather pursues — you guessed it — climate-related investments. The strategic funding in Palmetto is geared toward speed up its progress and growth.
“Palmetto’s digitally enabled end-to-end platform creates efficiencies alongside each step of the residential photo voltaic possession course of, from gross sales and financing to set up and repair and upkeep. Because of this, prospects profit from price efficient residence options, accelerated undertaking timelines, and extra dependable and reasonably priced power,” stated Steven Mandel, Enterprise Unit Associate at TPG Rise Local weather. “Our funding in Palmetto underscores our perception within the progress of residential clear power options over the approaching decade within the US and Palmetto’s capacity to leverage its distinctive platform to additional increase its market place.” As a part of the transaction, Mandel will be part of Palmetto’s Board of Administrators.
Most not too long ago, Palmetto launched new options to extend set up timelines within the buyer’s service space and improve client adoption.
“TPG Rise Local weather not solely has deep expertise throughout the clear power provide chain, however this capital can even assist us leapfrog a few of our client product traces the place we really feel the market competitors isn’t serving the buyer as optimally as they deserve,” stated Chris Kemper, Founder and CEO at Palmetto.
The residential photo voltaic market continues to be motivated by growing family electrical energy payments, energy outages, and low financing prices. Photo voltaic power added probably the most producing capability to the grid for 4 consecutive years and is on monitor to take action once more in 2023. In accordance with forecasts from the Vitality Data Administration, photo voltaic capability is anticipated to develop 84% over the subsequent two years.
This funding additional reinforces the sturdiness of Palmetto’s core enterprise. The corporate is well-positioned to capitalize on the alternatives forward throughout the clear power economic system, all with an unrelenting focus to offer the most effective worth and greatest service to customers.
Financial institution of America served as monetary advisor to Palmetto in relation to the transaction. Latham & Watkins served as authorized counsel to TPG.