A local startup that connects consumers to clean energy sources is prepping for major expansion after adding to its war chest.
Arcadia Power, the D.C.-based developer of what it calls the first nationwide digital utility, on Thursday announced that it closed a $25 million Series B funding round led by G2VP.
ValueAct Spring Fund, McKnight Foundation, Energy Impact Partners and existing investors participated in the round, which follows last year’s $6 million Series A round led by Energy Impact Partners.
Arcadia Power connects homeowners and renters to regional renewable-energy programs, allowing them to use wind and solar as part of their usual electricity consumption.
Members have access to an online dashboard where they can enroll in clean energy programs, track account activity, view energy usage and pay their utility bill. It integrates with more than 100 wind and solar utilities and has experienced 500 percent member growth over the last year, now surpassing 175,000 members, according to the company.
“Power bills are the most important tool people have to fight climate change, but not enough options exist in the market – they don’t know where to start,” CEO Kiran Bhatraju said. “People think clean energy is hard to get, but our technology and platform show we can expand these offerings to pretty much anyone who pays the power bill.”
In addition to connecting users with sustainable energy sources, Arcadia Power's new Price Alerts system monitors competitive energy markets and uses the combined purchasing power of its members to secure low, fixed rates for energy. Last month, for example, Bhatraju said the company saved New York members 30 percent on the standard utility rate.
It also works with community solar programs and lets users connect to a solar project anywhere in the D.C. metro area without switching utility companies.
“We always knew there was demand, but didn’t realize how great that demand was.”
Members additionally have access to energy efficiency tips and can purchase devices like smart thermostats and LED lighting through the software.
Arcadia says its members have generated over 460 GWh of clean energy and averted over 320,000 tons of CO2 emissions since its founding in 2014.
“We always knew there was demand, but didn’t realize how great that demand was,” Bhatraju said. “And that only seems to be accelerating.”
The new funds will support Arcadia Power’s growth nationwide and the expansion of its data science and engineering teams. The company’s 65 employees work at its D.C. office, and Bhatraju said it plans to add about 35 to that total. Arcadia will likely look for bigger digs in about a year once it approaches 100 employees.
Following the new Series B round, Opower founder Alex Laskey, tech investor Dan Leff and G2VP partner Ben Kortlang will join Arcadia’s board.
G2VP is a venture capital firm that invests in companies applying emerging technologies to traditional industries in sustainable ways, in industries including transportation, agriculture, manufacturing and energy.
