Solar AI Technologies, a Singapore-based startup, has recently secures $1.5M led by Earth Venture Capital (Earth VC) in a seed round. The funding will be used to expand their Rent-To-Own solar program within Singapore and also embark on regional expansion in the next 12 months. The Rent-To-Own program offered by Solar AI Technologies allows landed homeowners and small businesses to rent their own solar panel systems without any upfront costs. Instead, customers pay a flat monthly fee that covers installation, maintenance, servicing, and even provides an energy generation guarantee. This model is a game-changer compared to the traditional solar offerings that demand upfront costs ranging from $15,000 to $50,000. By eliminating the need for upfront payment, Solar AI Technologies aims to de-risk solar as a renewable energy solution, particularly in Southeast Asia where trust and awareness of the technology are still low.
Southeast Asia has witnessed a significant increase in grid electricity prices of close to 30% since the global energy crisis. This, along with increasing policy support and market demand for renewables, has created a favorable environment for solar solutions. However, more than 95% of rooftops in Southeast Asia lack access to zero-upfront or leasing options for solar. By offering the Rent-To-Own model, Solar AI Technologies aims to address this gap and contribute to a reduction of over 200 megatons of carbon emissions per year.
The company's impressive track record and talented team have garnered support from notable investors, including Earth Venture Capital, Undivided Ventures, Investible, and climate-tech angel investor David Pardo. Caroline Guyot, Co-Founder and Managing Director of ENGIE Factory Asia-Pacific, expressed her excitement about Solar AI's growth and their potential to disrupt the solar industry.
Solar AI Technologies has already seen great success with its Rent-To-Own model, with more than 9 out of 10 customers choosing this option over upfront payments. The company has already signed rooftop solar contracts worth over SGD 3 million, and completed more than 100 rooftop solar installations last year.
Investors are optimistic about Solar AI Technologies' potential to scale solar installations in Southeast Asia and address pressing environmental challenges. Linh Nguyen, General Partner of Earth Venture Capital, emphasized their commitment to supporting the hyperscaling of solar installation through the Rent-To-Own model. Ben Lindsay, Investment Manager at Investible, highlighted the untapped potential for residential and commercial solar-as-a-service throughout Southeast Asia.
Solar AI Technologies envisions leading the energy transformation across the region to a net-zero world. Their Rent-To-Own model aims to make it as easy as possible for property owners to adopt solar energy by providing a risk-free and fully-serviced solar experience. With their innovative approach and commitment to sustainability, Solar AI Technologies is poised to be a leader in the region's solar industry as it continues to grow and evolve.