The capital is expected to support 2024 and 2025 Palmetto LightReach residential solar contracts.
Palmetto announced it has secured $1.2 billion in investments to support its LightReach business, a residential solar lease and power purchase agreement platform. Investors included Morgan Stanley, Truist Bank and other prominent financial institutions.
Under the LightReach program, a third party owns the asset. Homeowners can install rooftop solar and energy storage systems for $0 upfront and predictable monthly payments. Palmetto said its LightReach customers see savings on utility rates within the first year, with no interest, dealer fees, or lifetime maintenance costs.
The finance platfom is connected with over 600 small- and medium-sized businesses and enterprise partners, providing solar, storage, HVAC, and more.
Operating since 2010, the company leverages AI to provide personalized home energy recommendations and tools to understand energy usage and spending. Customers can then explore options like solar panels, battery systems, EV chargers, protection plans, and smart energy devices, while financing some of these products directly through Palmetto LightReach.
Palmetto launched LightReach energy plans in late 2023. The company is now on track for about 300 customer additions per day across 30 states. To date, over 20,000 households have adopted solar energy through a Palmetto LightReach solar lease or PPA energy plan.
“We invested over $200 million over the past 8 years in our operating systems, which first scaled a singular product, solar power, and now extended to a far broader product catalogue,” said Chris Kemper, founder and chief executive officer, Palmetto. “Consumer financing, alongside other additional strategic growth areas, leverage our tech-enabled scaling capabilities.”
In the United States, low-income families spend about 18% of take-home pay on energy, according to the American Council for an Energy-Efficient Economy. With energy costs rising 30% over the last four years, and the added price pressure expected from AI and datacenter electricity demand, homeowners are looking for options to lower and stabilize costs. Residential solar and energy storage has emerged as the leading alternative to rising grid costs. It also enables customers to cut their carbon emissions from residential energy use, which accounts for 42% of U.S. energy-related emissions, according to Rewiring America.
