Arcadia Power, developers of the first nationwide digital utility, has announced the closing of a $25 million Series B funding round led by G2VP.
Participation has also been secured from ValueAct Spring Fund, McKnight Foundation, Energy Impact Partners, Cendana Capital, Wonder Ventures, BoxGroup and existing investors.
The company's direct-to-consumer platform integrates with more than 100 utilities, has two terawatt hours of annual energy demand under management and has experienced 500% member growth over the last 12 months.
The new funds will support Arcadia Power's rapid growth in all 50 states, the expansion of its data science and engineering teams, as well as an acceleration of new flexibility services for utilities and smart home technology companies.
Arcadia Power has digitised the home energy experience to give everyone clean energy options they have never had before. The company's technology connects renters and homeowners to wind and solar power, greater cost control, smart home devices and payment options without transaction fees.
By simply creating a free account with their utility and billing information, Arcadia Power members have instant access to a mobile-optimised online dashboard where they can enroll in various programmes including:
Wind Energy. All members are automatically enrolled in 50% Wind Energy for free, where half of their monthly usage is matched in investments in wind farms, or can upgrade to 100% Wind Energy.
Community Solar. Members can either subscribe to a share of a local community solar project for free or purchase a panel from one of Arcadia Power's solar partners. Members then receive guaranteed solar savings on each monthly power bill with no installation, equipment, fees, or commitment contracts.
Price Alerts. Arcadia Power constantly monitors competitive energy markets and uses the combined purchasing power of members to secure exclusively low, fixed rates for energy.
Home Efficiency. Members can save by purchasing home efficiency devices, such as smart thermostats and LED lighting, at zero upfront cost, participate in demand response programmes in select states and access efficiency tips on their dashboard.
Bill Pay. Members can choose their preferred payment method, track the status of their monthly statements, view payment history, and more. Arcadia Power offers zero-percent fees on credit transactions and guarantees on-time payments with autopay.
"The future of energy is people-powered," said Kiran Bhatraju CEO of Arcadia Power. "The electricity industry hasn't changed much in the last hundred years and we believe that homeowners and renters want a new approach that puts them first. Our platform places clean energy, home efficiency and data insights front and center for residential energy customers in all 50 states."
Arcadia Power first closed a $6 million Series A investment round led by Energy Impact Partners (EIP) in 2017, with participants including prior investors Box Group and Wonder Ventures.
Following the new Series B round, Alex Laskey, founder and president of Opower; Dan Leff, experienced operator and investor in energy and technology companies; and Ben Kortlang, partner at G2VP; will join the company's board. Eva Zlotnicka, vice president of ValueAct Spring Fund and former sustainability research U.S. team lead at Morgan Stanley, will also join as an observer to the board.
"Startups are using technology to digitise traditional industries, and energy is no exception," said Ben Kortlang, Partner at G2VP. "Arcadia Power uses technology to provide low-cost clean energy to consumers in all 50 states. As the utility of the future, the company's technology makes a customer's energy experience just as clean and simple as their transportation app. Arcadia Power's rapid growth demonstrates the strong demand for easy, affordable access to renewable energy, payment flexibility and energy efficiency."
Arcadia Power has now surpassed 175,000 members nationwide. For members in competitive energy markets, this growth trajectory promises increased savings. The company's Price Alerts program leverages aggregate buying power, driving low fixed-rates for clean power as membership grows.