Residential solar marketplace Palmetto finalized a $150 million investment from TPG Rise Climate. The announcement from Palmetto is part of the company’s push into expanding its software and technology platform, which helps individuals, small business, and large corporations access and grow in the clean energy economy. Additional terms of the investment were not disclosed.
Palmetto manages the end-to-end residential solar process. Its operating platform handles sales, design, engineering, permitting and fulfillment. For installers, Palmetto offers a path to reduce soft costs, which oftentimes represent over 50% of each residential solar project, using automated workflows, predictive algorithms, and local intelligence data.
Launched in 2021, TPG Rise Climate pursues — you guessed it — climate-related investments. The strategic investment in Palmetto is aimed at accelerate its growth and expansion.
“Palmetto’s digitally enabled end-to-end platform creates efficiencies along every step of the residential solar ownership process, from sales and financing to installation and service and maintenance. As a result, customers benefit from cost effective home solutions, accelerated project timelines, and more reliable and affordable energy,” said Steven Mandel, Business Unit Partner at TPG Rise Climate. “Our investment in Palmetto underscores our belief in the growth of residential clean energy solutions over the coming decade in the US and Palmetto’s ability to leverage its unique platform to further expand its market position.” As part of the transaction, Mandel will join Palmetto’s Board of Directors.
Most recently, Palmetto released new features to increase installation timelines in the customer’s service area and increase consumer adoption.
“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 Chris Kemper, Founder and CEO at Palmetto.
The residential solar market continues to be motivated by increasing household electricity bills, power outages, and low financing costs. Solar energy added the most generating capacity to the grid for four consecutive years and is on track to do so again in 2023. According to forecasts from the Energy Information Administration, solar capacity is expected to grow 84% over the next two years.
This investment further reinforces the durability of Palmetto’s core business. The company is well-positioned to capitalize on the opportunities ahead across the clean energy economy, all with an unrelenting focus to provide the best price and best service to consumers.
Bank of America served as financial advisor to Palmetto in relation to the transaction. Latham & Watkins served as legal counsel to TPG.