Empowering Solar Installers with Financing Solutions
Solar Energy is gaining traction in Europe, especially after the recent surge in electricity prices due to geopolitical tensions. However, as electricity prices stabilize, solar installers face increased marketing expenses to attract customers. A proven strategy to boost sales is offering financing options. Yet, small installers often lack the resources to underwrite new installations, leading customers to seek bank loans and possibly switch installers. Cloover, a Europe-based startup, aims to solve this by providing financing solutions for solar energy installations.
Innovative Financing to Boost Solar Energy Market
Cloover, co-founded by Jodok Betschart, Peder Broms, and Valentin Gönczy, offers a comprehensive solution by integrating project-bidding software with real-time financing options. This approach helps small installers provide loans directly, ensuring they retain customers. Cloover’s software assesses customer data to evaluate loan repayment capability and energy expenditure. In many cases, the monthly solar panel payment is less than the electric bill, a factor often overlooked by traditional banks.
“Many times, we can enable financing where a normal bank said they cannot do it,” said Betschart. This unique value proposition sets Cloover apart and facilitates more widespread solar energy adoption.
Strategic Investment and Market Expansion
To support its innovative financing model, Cloover recently secured $108.5 million in debt and a $5.5 million seed round led by Lowercarbon Capital, with participation from 9900 Capital and QED’s Fontes. The company will own the loans through a special-purpose vehicle financed by senior debt providers, covering a portion via equity. Installers pay Cloover a transaction fee for each originated loan, and Cloover also claims a percentage of each loan payment.
Cloover plans to expand its services by hiring sales and customer success teams to train installers on using financing for energy upgrades. Currently, about 200 installers use Cloover’s service, with potential for thousands more. Betschart emphasized the importance of financing in accelerating the adoption of climate-friendly technologies, noting that 85% of renewable energy installations are completed by local and SMB installers.
Driving the Energy Transition
Cloover’s financing solutions are crucial for the solar energy market and the broader energy transition. By enabling small installers to offer financing, Cloover helps level the playing field with larger companies, ensuring that local and SMB installers can compete effectively.
“Big companies already have sophisticated platforms to assess customers’ financial capacities,” said Betschart. “The only way to achieve the energy transition is by offering exactly the same optionality to SMB installers.”
Cloover’s innovative approach to financing solar energy installations highlights the importance of accessible financing in promoting renewable energy adoption. As Cloover expands its reach, it will play a significant role in driving the transition to a sustainable energy future.
Source：techcrunch.com
