Greener homes

1. 1. Labour gap

   → Meeting projected uptakes in residential solar panels and heat pumps will depend on swathes of skilled workers to install them — but shortages are looming.

   → In response, most startups supplying panels use AI for provisioning and only require technicians for the final installation, while others are developing plug-in panels that forego the need for specialised workers altogether.

2. 2. Grind then shine: solar’s leasing model gains popularity

   → Rather than selling, startups are leasing solar panels to customers on a subscription basis to reduce upfront costs.

   → While this allows startups to bring in repeat revenue, it also means they’re subsidising their solar panels in the short term, requiring them to raise debt as well as equity.

3. 3. Going full stack

   → Some startups are now becoming one-stop shops that combine heating, solar panels or storage systems on one platform.

   → Instead of startups competing primarily on their in-house expertise, the sector may equally revolve around their ability to forge partnerships with and sell their products through each other.

4. 4. Energy providers: try to avoid “doing a Bulb”

   → Energy providers have been around for decades — and not all of them have stayed with the times when it comes to their customer service and tech stack.

   → The new crop of renewables startups hoping to fill this gap would do well to study cautionary tales like Bulb, hailed as Europe’s fastest growing company months before it collapsed last year.

Who early stage startups are up against