Palmetto raises over $1.2 billion to back LightReach financing
Solar sales platform Palmetto firmed up its financing arm, LightReach, raising over $1.2 billion in capital to support 2024 and 2025 residential clean energy plans, in partnership with prominent financial institutions and corporate partners.
Palmetto’s LightReach energy plans enable homeowners to install rooftop solar and storage systems with $0 upfront investment and stable monthly payments. LightReach also helps solar installers diversify their offerings with third-party ownership (TPO) solar leases. Palmetto LightReach energy leases are part of the Company’s broader effort to make it easier and more affordable for consumers to switch to clean energy sources.
Palmetto began quietly offering Palmetto LightReach energy plans towards the end of 2023 after listening to consumers regarding the limitations of existing financing options. Palmetto LightReach energy plans are now on track for an average adoption of 300 households per day in 30 states and counting. To date, over 20,000 households have adopted solar energy through a Palmetto LightReach solar lease or PPA energy plan.
“We launched Palmetto LightReach to improve the consumer experience; in our sector, we have seen consumer issues emerge with legacy financial product providers and an antiquated go-to-market motion that can confuse consumers and create a bad name for the clean tech industry,” said Chris Kemper, Founder, CEO and Chairman of Palmetto.
Palmetto Energy Marketplace
Since 2010, Palmetto has been building the technology and service offerings of its solar, storage and energy efficiency ecosystem. Palmetto’s network includes over 600 small- and medium-sized businesses and enterprise partners. Palmetto’s proprietary technology platform leverages AI to provide homeowners with personalized energy recommendations and interactive tools to better understand their energy usage and spending.
Through Palmetto’s marketplace, customers can explore custom-tailored solutions like solar panels, battery systems, EV chargers, protection plans, and smart energy devices, while financing some of these products directly through Palmetto LightReach.
“We invested over $200m 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,” Kemper says. “Consumer financing, alongside other additional strategic growth areas, leverage our tech-enabled scaling capabilities. We will continue to grow and service our consumer base at a rapid rate; Palmetto LightReach is a great example of what we’re capable of executing.”
Solar leasing 101
Due to interest rates and the domestic content tax credit adder, solar leases are dominating the residential solar market right now. What do you need to know to start selling leases? Solar Builder Editor-in-Chief Chris Crowell gets a crash course in third-party ownership (TPO) solar programs from BayWa r.e. Finance Program Manager Joshua Tinaglia.
- 0:35 – Why should I consider offering solar systems via leases – aka third-party ownership?
- 1:48 – Questions to ask of my business before offering TPO?
- 4:06 – Fundamental differences in leases vs loans, as a business model
- 5:49 – Is there more work on the front end?
- 7:08 – How do I evaluate TPO providers? Fine print to watch for?
- 11:01 – How does TPO change my cashflow?
- 12:58 – How does a lease deal change my O&M strategy?
- 14:24 – What if a TPO customer wants to add a battery?
- 16:47 – Examples of how financing can sink or save a business.
