Norway’s Otovo Secures €40M to Expand Rent-to-Own Solar Marketplace
Norway’s Otovo Raises €40M to Expand Rent-to-Own Solar Marketplace
Norwegian startup Otovo has secured €40 million in funding to expand its online marketplace for rent-to-own solar panels. The company aims to capitalize on the growing demand from homeowners who are looking to reduce their energy bills. Otovo offers a unique solution by renting out solar panels and inverters at a fixed monthly cost, which includes all repairs and maintenance. Additionally, users have the option to purchase the panels outright.
Meeting the Increasing Demand for Solar Energy
As the price of solar electricity continues to drop, solar panels have become the cheapest energy source in history. With rising gas prices and the desire for energy security and cost-cutting, homeowners are increasingly turning to solar panels. In 2022 alone, rooftop solar capacity increased by 25 GW, according to industry body SolarPower Europe.
Overcoming the Financial Barrier
While solar panels are relatively inexpensive, they still present a significant upfront cost. Otovo’s rent-to-buy option aims to overcome this financial barrier. By offering a convenient and affordable solution, the company hopes to make it easier for homeowners to switch to solar energy.
Expansion Plans and Funding
Otovo, headquartered in Oslo, plans to utilize the €40 million funding to reach profitability and become the leading player in the European residential solar market. The company aims to take advantage of the current low cost of building new solar energy, rising traditional energy prices, and consumer demand for expense reduction. The funding round was led by existing shareholders, including energy utility Å Energi, Axel Johnson Group, and the Norwegian government’s Climate Investment Fund. This latest raise brings Otovo’s total funding to €231 million.
A Bright Future for Otovo
With the additional funding, Otovo is well-positioned to expand its reach and make solar energy more accessible to homeowners across Europe. By offering a rent-to-own model and providing comprehensive services, the company aims to make the transition to solar energy seamless and affordable. As the demand for renewable energy continues to grow, Otovo’s innovative approach is set to play a significant role in the residential solar market.