U.K. startup, Sunsave, pioneers solar panels and batteries on a subscription model, securing approval from the Financial Conduct Authority (FCA).
FCA Greenlights Solar Subscription Model
In a landmark move, the Financial Conduct Authority (FCA) has granted regulatory approval to Sunsave, a U.K. startup, to offer solar panels and batteries through a subscription model. Unlike traditional methods, subscribers won’t need to pay a lump sum upfront, potentially marking the advent of a new era in solar subscription services.
Sunsave’s Funding and Growth
Oxford-based Sunsave has not only received FCA approval but also raised £5.4 million ($6.7 million) in a seed round led by impact-focused VC Norrsken. Previous investors, including IPGL, Plug and Play, and angel investors such as Stuart Rose and Michael Spencer, participated in the round. In its 18 months of existence, Sunsave has raised a total of £9.2 million ($11.5 million).
Global Trend in Solar Subscriptions
Sunsave aligns with global trends seen in companies like Enpal in Germany and YC-backed SolarMente in Spain. These firms have successfully implemented solar subscription models, with Enpal recently securing $464 million in debt funding. In the U.S., the shift towards subscription-based models is evident, with major players like Sunrun dominating the Nasdaq.
Addressing U.K. Challenges
Sunsave’s approach contrasts with the prevalent “solar lease” model in the U.K., which has impeded domestic solar adoption due to restrictive terms. Sunsave’s flexible, loan-based subscription model allows customers to fully own the system without early repayment fees or penalties, potentially revolutionizing the U.K.’s solar landscape.
Source：techcrunch.com
