Solar energy has been gaining attention in Europe since the shock of Russia's invasion of Ukraine in 2022. While electricity prices have risen, the investment needed to put solar panels on a roof has fallen. This is thanks to new subsidies, better technology, and several European startups working to streamline the installation process.
One startup driving the energy transition for southern European homes is Samara, a Spanish company that just raised a Series A funding round of €9 million ($9.8 million at today's exchange rates) just two years after being founded.
“We have supported more than 1,700 families in their transition to solar power and other energy transition products,” Samara co-founder Manel Pujol told TechCrunch. “Since our launch in June 2022, we have become the fastest growing energy transition company in Spain.”
The startup has focused most of its energy on optimizing the installation process: When potential customers visit Samara's website, they can enter some basic information and get a preliminary quote and an estimate of how much they could save from a solar installation.
This seems like a strong starting point, as customers can save up to 70% on electricity consumption from the grid. Spain is one of the sunniest countries in Europe.
Samara then follows up, gathers more information and creates a personalized installation proposal using the company's proprietary offer builder. If the customer wants to move forward, Samara handles permitting, procurement and project management. The company has its own team of project managers and electricians.
When it came time to actually begin installing the solar panels and inverters, the company opted for a hybrid strategy, using both its in-house installation team and a third-party partner.
According to the company, this approach has two advantages: First, having an in-house installation team has improved the product overall by providing feedback that helps improve the customer journey. Second, building a marketplace of installers has significantly expanded Samara's reach; the company now operates in 75% of Spanish territory.
Samara also has a competitive advantage because its marketplace has more than 1,000 small businesses working on solar installations that cannot provide end-to-end services. At the same time, Samara can increase revenue with its own customer base.
Samara founders Iván Cabezuela and Manel Pujol. Image courtesy of Samara
In addition to solar installations, Samara also offers home batteries and electric vehicle chargers. Once you have solar panels on your roof, it makes sense to add a battery to save even more on your electricity bill. Similarly, an EV charger is the logical next step, as you won't have to pay for the electricity you consume.
On this front, Samara still has room to grow: “Currently, the installation rate of these products in our solar projects is around 20 percent, and we see great opportunities to further develop these products in Spain, which is well behind Germany, the UK and Italy in the adoption of batteries and EV chargers,” Pujol said.
Similarly, only 1,700 households have contacted Samara about solar projects, compared to around 6 million in total in Spain, meaning that in some ways the startup has only just scratched the surface of its potential to transform domestic energy supply in the domestic market.
In Germany, a similar startup, Zolar, has raised more than $170 million since it was founded in 2016, while in France, energy retrofit company Effy closed a $22 million funding round last year after 15 years of bootstrapping, as energy retrofitting becomes a hot market for investors.
Samara's Series A round was led by Green Generation Fund and Move Energy. Ring Capital, Athletico Ventures, and existing investors Seea and Pelion Green Future also participated. Overall, the startup has raised €15.5 million ($16.9 million) since 2022.