Our Investment in WattBuy
Empowering enterprises by delivering access to affordable clean energy for their consumers
We’ve previously written about how, in spite of the growing supply of renewable energy being generated, there remains a small minority of U.S. homes powered by — or purchasing — clean energy directly. Renewable energy faces several ongoing challenges to furthering its adoption by consumers: awareness of flexible options that go beyond installing rooftop solar, engendering trust in the energy provider, and surfacing recommendations when consumers are most receptive to the proposition of green power.
New York City based WattBuy is addressing these areas of friction by creating a digital distribution network for clean energy plans, which consists of online real estate, financial services, and home energy management companies.
We’re excited to announce our investment in WattBuy, whose CEO & Co-Founder Naman Trivedi was a recent guest on the MCJ podcast. Since its founding in 2018, the company has rolled out its offering across the U.S., developed partnerships on both the energy supply and demand side, and enrolled thousands of consumers on clean energy plans. We look forward to continuing to support the company’s growth and its mission to increase access to affordable and sustainable electricity.
What is WattBuy?
WattBuy provides online services, in industries such as real estate, energy, and personal finance, with access to affordable clean energy plans that the companies can offer to its end consumers. With WattBuy’s API, companies can offer their customers personalized electricity plans, solar options, and other clean energy products.
Leveraging machine learning, WattBuy gathers property and climate data from a number of sources to forecast estimates around electricity consumption. This approach enables the company to tailor its recommended plans based on the address and characteristics of homes throughout the U.S. By distributing clean energy plans through partners, such as Mint or Opendoor, WattBuy is able to present sustainable electricity options when prospective customers — typically using those services to view their electricity expenses or planning a move — are most receptive. This contextually relevant distribution model is key to providing WattBuy’s network of clean energy suppliers with the lowest cost to acquiring customers. Companies that integrate with WattBuy’s API reap a meaningful revenue share of any energy plans sold as well as a brand lift that comes from providing this sustainable offering. WattBuy makes money from commissions resulting from enrollment as well as platform fees for use of its API.
Why Did We Invest?
Expanding Access to Affordable Clean Energy
According to Pew Research Center, approximately 6% of U.S. households report installing rooftop solar. With so few American homes running on renewable energy, WattBuy represents part of the digital infrastructure required to increase uptake of clean energy plans by expanding access through improved distribution and raising awareness among end consumers.
Growing Traction and Market Expansion
Since its founding in 2018, WattBuy has sourced over 4,000 clean energy plans from 25 electricity providers that are available in 11 states across the U.S. In addition, it has developed relationships with a number of consumer Internet companies across several strategic categories.
By simplifying access to clean energy and educating consumers on the climate impact of purchasing it, WattBuy is helping to power more homes with renewables. We expect that, as the company scales, its service will prove to be an integral part of rolling out sustainable electricity throughout households across the country.
If you are an accredited investor, and want to learn more about being an investor in our fund (to back more great companies like this one!), reach out here.