Startup Raises $1.2M For Home Solar Subscription With Zero Upfront Cost

Solar tech startup GRYD has secured £1 million ($1.2 million) in pre-seed funding, according to Tech Funding News. GRYD was created in 2023 by Mohamed Gaafar, Scott Whiteside, and Tom Jordan to make solar energy accessible to everyone by allowing solar-as-subscription to newly built homes.

The trio met at the Antler accelerator program, where they devised the idea for a company that would provide homeowners with zero-cost residential solar systems as energy costs continue to rise in the UK.

The pre-seed round saw investments from SFC Capital and Black Seed VC, an early-stage venture firm committed to Black business founders in the UK. Oasthouse Ventures is also participating in the round, and its Director, Simon Turner, who has funded and built several renewable infrastructure businesses worldwide, joins GRYD’s board as an Investor Director.

What will GRYD’s investment go towards?

The funding will go towards expanding GRYD solar subscription, which is the first of its kind in the UK. Additionally, the investment will help the company advance the positioning of its zero-cost solar and battery systems by collaborating with housing developers, registered providers, and local authorities nationwide.

The company intends to use its new funding to invest in a round of essential hires, establish more energy imports and export partnerships, and build GRYD’s service to allow flexibility services like expanding customer savings by charging and discharging stored energy based on dynamic price signals to support capacity in the grid.

Making Solar affordable for all

Around 8.5 million UK homeowners have roofs suitable for solar but cannot afford the upfront costs. This is where GRYD’s subscription comes in. A GRYD subscription averages £65 ($81) per month for a four-bedroom home. The monthly costs are capped and include maintenance and insurance for the 25-year life of the system. This is expected to save developers up to £10,000 ($12,500) in hardware costs per home and allow homeowners to benefit from solar as soon as it is installed.

“With around 250,000 new homes being built in the UK each year, the untapped solar potential of our residential rooftops is immense and only continues to grow – as does the pressing need to ensure that Britain’s new housing stock is futureproofed and primed for a clean, energy-efficient future,” Mohamed Gaafar, CEO and co-founder of GRYD, said.

Image: GRYD Energy and Black Seed teams