ENERGY

Palmetto Raises $375 Million to Accelerate Residential Clean Energy Independence

Palmetto | February 25, 2022

Palmetto, a leading clean energy marketplace and technology services platform, announced it has raised approximately $375 million to accelerate the adoption of residential solar and clean energy independence across the United States. The round was led by Social Capital, with participation from new and existing investors including ArcTern Ventures, Gaingels, Lerer Hippeau, and MacKinnon, Bennett & Co. (MKB).

Palmetto's Unique Approach to Clean Energy Adoption
The residential solar market primarily consists of asset-heavy, low-margin business models, which make the transition to a clean energy system expensive for both homeowners and providers. While residential solar represents a more than $100 billion total addressable market, only 3% of the more than 70 million homes across the U.S. utilize solar energy.

Meanwhile, the U.S. continues to face an energy crisis on many fronts, ranging from reliance on carbon-based fuels to struggling utility companies with aging infrastructure, existential liabilities, and rising energy bills.

By leveraging proven business models – such as third-party services marketplaces and subscription-based revenue models – Palmetto is able to maintain substantially lower operating costs compared to peers and pass those savings onto homeowners, ultimately making clean energy adoption more accessible and affordable for Americans.

The company takes a marketplace-based approach to the most expensive aspects of the residential solar value chain – customer acquisition and installation – by facilitating a third-party network of trained sales specialists and certified technicians. Combined with Palmetto's proprietary software platform that manages the survey, design, engineering, financing, permitting, maintenance, and active system monitoring aspects of the transaction, the company offers a complete end-to-end transaction platform without the operating expenses of a vertically-integrated provider.

As a result, Palmetto is able to offer its customers a path to clean energy independence at a cost up to 30% lower than its peers. This model also decouples revenue growth from operating expenses, creating a win-win-win-win for homeowners, Palmetto's network of sales and build members, shareholders, and the broader advent of clean energy independence.

Palmetto will use the funds to invest in growing its marketplace of independent contractors, as well as the technology, people, and resources to maintain – and over time grow – its overall operating efficiencies in order to expand its addressable market.

Management Comments

Palmetto is the first distributed energy company built from a software foundation, which enables us to scale unlike any other clean energy provider and make real progress towards our mission of mitigating climate change. I honestly believe that in the same way the cell phone fundamentally changed the telecom market, Palmetto has the opportunity to do the same to the centralized fossil fuel industry."

Chris Kemper, Chairman, Founder, and CEO of Palmetto

Kemper added: "This is a major milestone not only for Palmetto, but for the entire clean energy sector. We remain hyper-focused on offering the best residential solar product on the market, which we aim to do through seamless execution of our unique operating model. We look forward to the next step of our evolution whereby we expand our marketplace to include other cost-saving products and services that empower homeowners to achieve energy resilience and independence."

Chamath Palihapitiya, Founder and CEO of Social Capital, said: "Each year the energy crisis in the U.S. becomes more visible and urgent – utility companies are becoming even less reliable, climate calamities have exposed our aging infrastructure, and energy prices continue to rise. Palmetto is taking a fresh and unique approach to the residential solar model, making it easier than ever for homeowners to become energy independent, a major step towards a sustainable energy future. We are excited to back Chris and his team on their mission to solve one of the biggest existential threats of our generation."

The company also announced that Chamath Palihapitiya and Nirav Tolia, Co-founder and former CEO of Nextdoor, have joined Palmetto's Board of Directors. They join other directors and advisors, including Joanne Bradford (former Pinterest and SoFi), Monica Wililams (Equity Project), Francis Suarez (Mayor of Miami), Will Szczerbiak (Greycroft), Kyle Burks (STR Services), Jared Wray (Palmetto, CTO & Co-Founder), and Sean Hayes (Palmetto, Founding Team).

About Palmetto
Palmetto is committed to the democratization of energy by putting power and control back in the hands of consumers and inspiring them to make environmentally responsible choices. The company has developed a clean energy marketplace, with proprietary technology designed to make it easier and more affordable for homeowners to source their energy from renewables like solar power. Palmetto is an award-winning company and most recently was awarded Sustainable Company of the year by Best Company.

About Social Capital
At Social Capital, we make big bets on transformational ideas, technology, and people. We strategically invest in smart, profit-minded opportunities and forward-thinking social investments that have the potential to shape a better future.

We do this from a balance sheet of permanent capital to support entrepreneurship at all stages. This allows us more flexibility to double down on our convictions, without the limitations of traditional fund structures, and gives founders the runway and resources necessary to succeed. We believe in the outsized potential of for-profit businesses to drive impact in the world. We aim to set a new standard for what capitalism can be.

Spotlight

Trust Solar is a Cape Town Based Solar PV company that specialize in sustainability and renewable energy through Solar PV installations. We offer Renewable Energy Solutions that save you money from day one without any capital outlay Grid-tied solar system are commonly used by homes and businesses. This type of system is connected to the public electricity grid/supply and does not need battery storage. A UPS battery system can be added for Load Shedding A hybrid system is a more modern type of system. It comes in many configurations, it makes use of both the Off-Grid and Grid-Tied system, which uses both battery & solar.


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ENERGY

Branch Energy and ENGIE Energy Marketing Announce $40M Wholesale Power Supply Facility Agreement

Branch Energy | January 13, 2022

Branch Energy, a technology-focused green energy provider, and ENGIE Energy Marketing, NA, Inc, a subsidiary of ENGIE S.A., announced a $40M strategic non-dilutive wholesale power supply facility. The agreement will provide Branch Energy with access to U.S. wholesale energy markets and working capital, as well as the ability to leverage ENGIE Energy Marketing's extensive renewable energy platform. Branch Energy both sells electricity with an easy-to-use platform and leverages data and artificial intelligence (AI) to determine which smart devices will help reduce a consumer's energy bill the most and helps to coordinate the installation and financing of the devices. This combination of green energy and energy-monitoring smart devices not only saves consumers money but also reduces their carbon footprint. ENGIE has one of the fastest growing portfolios of renewable generation assets in North America which makes it the perfect partner to help us grow. We are thrilled with the far-reaching impact this will allow Branch to have." Daniel MacDonald, Branch Energy President Earlier this year, Branch Energy launched its first market in Texas. The new facility will enable the company to accelerate its growth in the state and to expand into markets across North America. "ENGIE has made some of the most aggressive commitments in the industry to cutting carbon emissions and expanding renewable generation," said Ken Robinson, ENGIE Energy Marketing President. "Partnering with retailers who have committed to 100% carbon-free power is directly aligned with these commitments, and we are delighted to be partnering with Branch Energy." About ENGIE Our group is a global reference in low-carbon energy and services. Together with our 170,000 employees, our customers, partners and stakeholders, we are committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by our purpose ("raison d'être"), we reconcile economic performance with a positive impact on people and the planet, building on our key businesses (gas, renewable energy, services) to offer competitive solutions to our customers. Turnover in 2020: 55.8 billion Euros. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Eurotop 100, MSCI Europe) and nonfinancial indices (DJSI World, DJSI Europe, Euronext Vigeo Eiris - Eurozone 120/ Europe 120/ France 20, MSCI EMU ESG, MSCI Europe ESG, Stoxx Europe 600 ESG, and Stoxx Global 1800 ESG). About Branch Energy Branch Energy is a green energy provider dedicated to helping consumers lower their monthly bills and carbon footprint through the use of smart technology. Through data analysis and the use of AI, the company pinpoints which smart devices will offer the most help to reduce a consumer's bill, and then helps them finance and install those devices.

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SUSTAINABILITY

XCMG Pushes for Carbon Neutrality within Its Operating Boundaries by 2049

XCMG | February 22, 2022

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PRODUCTS

OhmConnect Partners with Redondo Beach City Leaders to Shut Down High-Pollution Peaker Plant on Beach

OhmConnect | May 19, 2022

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Next Earth | April 23, 2022

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Spotlight

Trust Solar is a Cape Town Based Solar PV company that specialize in sustainability and renewable energy through Solar PV installations. We offer Renewable Energy Solutions that save you money from day one without any capital outlay Grid-tied solar system are commonly used by homes and businesses. This type of system is connected to the public electricity grid/supply and does not need battery storage. A UPS battery system can be added for Load Shedding A hybrid system is a more modern type of system. It comes in many configurations, it makes use of both the Off-Grid and Grid-Tied system, which uses both battery & solar.

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