Solar energy has become increasingly important in Europe since Russia invaded Ukraine in 2022. Electricity prices are rising, while the investment required to get solar panels on your roof is falling. This is due to new subsidies, improved technology, and a number of European startups working on simplifying the installation process.
One of the startups driving the energy transition in European homes in Southern Europe is Samara, a Spanish company that has raised 9 million euros ($9.8 million at today’s exchange rate) in a Series A funding round just two years after its founding.
“We have helped more than 1,700 households transition to solar energy and other energy transition products so far,” Samara co-founder Manel Pujol told TechCrunch. “Since launching in June 2022, we have become the fastest-growing energy transition company in Spain.”
The startup has spent most of its energy on optimizing the installation process. When potential customers visit Samara’s website, they can enter basic information to receive a preliminary quote and an estimate of how much a solar installation could save them.
It appears to be a strong start, as customers can save up to 70% on their electricity consumption from the grid – after all, Spain is one of the European countries with the most hours of sunshine.
After that, Samara follows up to collect more information and create a personalized installation proposal using the company’s proprietary offer builder. If the customer wants to proceed, Samara handles permitting, procurement, and project management. The company has its own teams of project managers and electrical engineers.
When it came time to actually install the solar panels and inverters, the company chose a hybrid strategy with an in-house installer team and some third-party partners.
It says there are two benefits to this approach. First, having an internal installation team has improved the overall product as this team can provide feedback and help improve the customer journey. Second, creating a marketplace of installers has significantly expanded Samara’s reach. The company now operates in 75% of Spain.
Samara’s market is also a competitive advantage as there are more than 1,000 small companies working on solar power plants. These small companies cannot provide a truly end-to-end service. Also, Samara can increase its income through its own client base.
In addition to solar installations, Samara also offers batteries for homes and electric vehicle chargers. Once you have solar panels on your roof, it makes sense to install batteries to reduce your electricity bill even further. Likewise, since you don’t pay for the electricity you consume, an EV charger is a logical next step.
Samara still has room for growth on this front. “Currently we see around a 20% engagement rate of these products in our solar projects and there is a significant opportunity to further develop these products in Spain, which still lags far behind Germany, the UK or Italy in the adoption of batteries and EV chargers,” said Pujol.
Similarly, while 1,700 households approached Samara for the solar project, there are around six million homes in Spain overall. So, at one level, the startup has still barely scratched the surface of its potential to transform household energy provision in its home market.
In Germany, a similar startup called Zoller has raised over $170 million since its founding in 2016. While, in France, energy renewables company Effie completed a $22 million funding round last year after bootstrapping for 15 years, as energy renewables become a popular market for investors.
Samara’s Series A round was led by Green Generation Fund and Move Energy. Ring Capital, Athletico Ventures, and existing investors Seiya and Pelion Green Future also participated. In total, the startup has raised €15.5M ($16.9M) since 2022.