This revolutionary startup promises lower energy bills when you lease solar panels: 'We're guaranteeing that the customer is going to save money'

One of the biggest obstacles for homeowners who want to get solar panels is the high upfront cost — but a new service from clean energy startup Palmetto promises that users who lease solar panels for their home, for no money down, will immediately pay less on their energy bills.

With $1.2 billion in new funding from financial institutions and corporate partners, Palmetto can shoulder the financial risk of upfront solar installation costs while giving its customers access to solar and battery storage via simple energy leases.

"We are guaranteeing that the customer is going to save money when they lease with us," Palmetto Vice President Nathan Healy told The Cool Down. 

The company's CEO, Chris Kemper, describes its mission as "the Apollo project of our generation, through which Americans achieve energy independence and sustainable energy through mass adoption of affordable clean energy." 

This new plan to make solar simpler and more affordable could finally remove barriers for the 78 million U.S. households that don't yet own or lease a solar energy system. 

"We started the company 15 years ago with the same mission we have today — to lead the world toward a clean energy future," said Kemper. 

☀️ Does it sound too good to be true? Here's how it works.

After entering your address and energy bill info into Palmetto's website, you'll see if your home is eligible for solar panels (for example, does your roof get enough daily direct sunlight?). Then, Palmetto's team will put together a personalized plan with a clear sense of your estimated monthly energy savings by switching to solar. 

Once you've got a custom plan, you can choose to be contacted directly by one of Palmetto's energy advisers or have a proposal sent to your email. Bottom line: You won't be bombarded with individual solar installers spamming your phone.

If you decide to move forward, you can choose to buy the panels upfront (which may be eligible for a tax credit) or lease the panels with no money down, with the option of Palmetto financing the installation through its new LightReach program. Palmetto contracts with one of the 600-plus local solar installers in its network to install the panels, and it also accepts the risk and responsibility for them. 

If you were to install home solar panels, which of these factors would be your primary motivation? Energy independence ⚡ Lower power bills 💰 Helping the planet 🌎 No chance I ever go solar 🚫 Click your choice to see results and speak your mind.

Palmetto's production guarantee means the panels must produce at least 90% of the solar energy the team promised in its proposal, Healy told The Cool Down. "If something doesn't work and the panels don't produce solar, then you don't pay us," he said.

Once your solar panels are installed, you can monitor your home's energy usage in real time in the Palmetto app.

📈 Here's why leasing solar is the innovative solution people are gravitating toward

Healy reported that Palmetto's leasing program, which started last year, is exploding in popularity. The company says that every day, on average, 300 households in 30 states are signing up for this type of plan. 

More than 20,000 households have switched to solar energy using Palmetto's leases or power purchase agreements, and the company expects that to double this year. In its first full year (2024), the company says it saved customers $6.4 million.

"Homeowners are increasingly interested in leasing rather than buying expensive home upgrades like solar panels or heating and cooling systems," said Kemper. 

Plus, because Palmetto helps users throughout the solar process — from getting a quote to installing the panels and even maintaining them — the team also ensures the customer experience. This is key because it means the company can prevent homeowners from becoming "solar orphans," which is when customers purchase low-cost solar panels and then that solar company goes out of business or can't support their needs.

That's also not likely to happen with a company with as much financial backing as Palmetto — which plans to expand internationally as well. 

🚀 Customers can feel empowered to be part of 'the revolution'

The success of Palmetto's leasing program is one of the first steps toward that "Apollo" mission Kemper has outlined to achieve what he calls a "New Utility Revolution." Think of it, Kemper says, as the future where "our main energy sources are decentralized, renewable, sourced from the sun and wind right here in the USA … where individual citizens own their own energy production, protecting their homes and their families from blackout."

And Kemper says we can't rely on policymakers or politicians to lead the revolution. Rather, it's individual consumers and companies like Palmetto that he sees "driving true innovation with pure will and force." 

One step at a time; that's what Healy says powers the Palmetto team every day: "Our guiding North Star is democratizing clean energy and making clean energy accessible for all." 

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