A clean-tech unicorn based in Charlotte is folding its solar construction arm into a subsidiary, it said today. It's aimed at enabling the firm to boost investments in its digital platform and expand its product line.
Palmetto, a clean-energy software company, plans to shift its solar installation business to PlugPV, a solar energy and battery storage provider wholly owned by the firm. The consolidation increases investment opportunities in high-growth areas at Palmetto such as its core platform that markets, finances, delivers and services solar energy products for customers all in one place. The transition is expected to be complete in six months, said Chris Kemper, Palmetto's founder, CEO and chairman.
“We think that will yield just freeing up more investment dollars to continue to drive the forefront of clean technology adoption, but also continued reduction of price to the consumer,” he told CBJ.
The growth of Palmetto’s platform model has driven solar energy sales toward a digital-first customer experience, according to Palmetto. That's resulted in “less and less pressure” on Palmetto to grow its installation business, Kemper said. As of this year, that unit represents about 10% of the company’s aggregate revenue.
“We just saw that they had the best craftsmanship. They had the best consumer net promoter score, best partner ratings,” Kemper said on why PlugPV was the right choice. “We concluded that rather than operate two companies, it made sense to consolidate into one for our construction arm.”
Founded in 2009, Palmetto serves as a business-to-business tech company that develops software products, helping homeowners and utility companies choose renewable energy sources and ultimately save money.
Through Palmetto's platform, customers can search for a solar energy company that meets their needs, build custom panel placement designs, access various financing solutions and fulfill the order under one digital tool. Its marketplace is targeted for consumers, distribution and build partners, and service providers.
“We're talking about a consumer marketplace that allows consumers to understand instantaneously their energy consumption, natural gas and electricity, and then it would present to them a range of products,” Kemper said.
The products are not all tied to solar needs, he added.
For example, Palmetto plans to deploy new consumer offerings for homeowners looking to get entire-home electrification. That process involves replacing all fossil fuel-powered appliances with modern, electric ones. Palmetto would provide this by recommending custom home energy solutions through its app.
The company is also ramping up investments in other areas such as LightReach, its new financing division. Palmetto said it established this unit to substantially expand solar financing and reduce financial barriers to clean energy adoption. Through LightReach’s energy plans, homeowners can install rooftop solar electricity with zero money upfront, no interest rate and free lifetime maintenance.
“We really think that the product category will grow, and then that will also have a net impact in a positive way to the consumer,” Kemper said.
Palmetto moved its headquarters to Charlotte from Charleston last fall. Its 7,000-square-foot office is located in South End at 1616 Camden Road. The company plans to expand its headquarters to 16,000 square feet later this year.
It also plans to continue growing its employee base in the Charlotte region by adding more sales and customer service teams. Palmetto said there will not be any employees in Charlotte impacted by the announced transition.
Palmetto has 126 utility partners and is in 25 U.S. states. It has 72 million serviceable households, and Kemper said nearly 85% of all U.S. buildings are mapped for solar potential and building energy management. The company has served tens of thousands of households in North Carolina.
Its platform has executed more than $1 billion clean energy transactions.
