Aurora Solar's Innovative Approach to Solar Panel Installation

Aurora Solar presented a concept that, in hindsight, appears remarkably straightforward. Rather than physically assessing a roof for solar panel suitability, why not leverage aerial scans and imagery covering entire regions? This insightful strategy resulted in a $20 million Series A funding round, followed by a $50 million Series B, and now a substantial $250 million Series C investment as they strive to establish themselves as the core software platform driving the expansion of solar energy.

The Core Innovation: Data Integration

The underlying principle is relatively easy to grasp, yet challenging to implement effectively. Extensive data concerning the topography, infrastructure, and physical characteristics of most urban areas is already available.

This includes satellite imagery, aerial lidar scans, power and light line locations, energy consumption data, and crucially, solar irradiance information for specific locations. Aurora’s key achievement lies not merely in utilizing this data, but in integrating it into a unified, user-friendly system accessible to solar installers.

“Aurora’s primary benefit is the ability to perform remote assessments far more rapidly and with greater precision than traditional on-site visits,” explained Sam Adeyemo, co-founder and COO.

Streamlining the Solar Installation Process

The service developed by Aurora employs algorithms to process the collected data, providing a swift assessment of a potential customer’s solar viability.

If a solar installation is feasible, the system can estimate costs and visualize the setup, including panel size and orientation.

Image Credits: Aurora Solar

Reducing the "Soft Costs" of Solar

“The cost of acquiring a customer can often reach several thousand dollars,” noted Chris Hopper, co-founder and CEO.

This is largely due to the customized nature of each installation. Hopper estimates that approximately half of the total project cost represents “soft costs” – expenses beyond the hardware itself.

“For a $30,000 quote, only $15,000 might be allocated to the physical equipment; the remainder covers overhead, design, customer acquisition, and related expenses,” he clarified. “Reducing these costs is essential for making solar energy more competitive, and Aurora is directly addressing this challenge. Every dollar saved on installation costs expands access to solar for new customers.”

Funding and Future Ambitions

Aurora does not conduct its own lidar surveys or perform solar installations, which may lead some to question the magnitude of the $250 million funding round for a software company.

However, Adeyemo and Hopper emphasized that developing enterprise-level software is a substantial undertaking, and the funding reflects their ambitious goals.

“The size of our funding round underscores the significant opportunities that lie ahead,” Hopper stated. “There is a vast potential for expanding solar energy adoption.”

To date, Aurora’s platform has been utilized to evaluate approximately 5 million solar projects, with around 20% ultimately being implemented, according to Adeyemo’s estimates.

A Growing Market and Policy Support

This represents a small fraction of the overall potential. Currently, solar energy accounts for roughly 2% of the U.S. power infrastructure, but projections indicate a tenfold increase within the next two decades.

The current administration’s policies are further bolstering industry optimism, and regardless of the fate of initiatives like the Green New Deal, the shift towards a more environmentally conscious energy policy is driving increased investment in clean energy technologies.

“This increased awareness of climate change will undoubtedly lead to greater interest in mitigation strategies,” Adeyemo observed.

He cited Texas as an example, where inquiries surged following recent storms and power outages. While renewable energy can be a contentious topic, solar power enjoys broad bipartisan support.

Image Credits: Aurora Solar

Expanding the Platform's Capabilities

The $250 million funding round, spearheaded by Coatue and including participation from ICONIQ, Energize Ventures, and Fifth Wall, will enable the company to broaden and deepen its product offerings.

“We have historically focused on design solutions; our next step is to evolve into a comprehensive platform covering more aspects of the solar adoption process,” Hopper explained. “We anticipate that this market will extend beyond a niche segment – transitioning from 2% to 20% and beyond represents a massive undertaking.”

Scaling for the Future

The co-founders refrained from providing specific details, but emphasized that scaling a SaaS company requires substantial upfront capital.

During their expansion phase, they aim to avoid concerns about future funding needs.

“In the company’s first five years, we operated in a largely bootstrapped manner, raising only about $1 million,” Adeyemo shared. “We understand what it takes to grow a company with limited resources, and now we are prepared to leverage significant capital to accelerate our growth.”

“If you aspire to be the platform powering a substantial portion of the nation’s energy capacity, you must invest in the necessary infrastructure.”

Further details regarding the company’s plans will be unveiled at their upcoming summit in June.