Stuttgart-based Metergrid, a startup that strives to provide green electricity to tenants, announced on Wednesday that it has raised €2.7M in a seed round of funding led by tech investment firm 468 Capital.
Metergrid says it will use the capital injection to scale its operations and offer affordable, clean energy to millions of apartment tenants across Germany.
“The investment from our new partners signifies their trust in our vision and will empower us to provide even more tenants with green electricity,” says Julian Schulz, founder and managing director of Metergrid.
Founded in 2020, Metergrid assists private landlords and small-to-medium real estate firms in developing tenant electricity projects. The startup helps landlords supply renewable energy to their tenants in a simplified fashion. Its SaaS platform provides end-to-end solutions for landlords, from billing software to project execution.
According to Metergrid, the transition toward green energy requires decentralised solutions. The startup also emphasises the need to engage with residents of multi-apartment buildings across Europe.
Creating win-win solutions
In the conventional system, homeowners and landlords are the only parties who benefit from sustainable electricity production. They can use off-the-grid power generated at their houses and even qualify for government subsidies. Renters, on the other hand, abide by regular electricity agreements and can only get power from the grid.
Metergrid says the tenant electricity system allows renters to benefit from a decentralised electricity generator, such as the photovoltaic system. They can use power generated from their rooftops, making them less dependent on the power grid.
It also means that tenants can actively participate in the energy transition despite not owning the houses they are living in. Tenants will also see a significant reduction in the cost of electricity, while landlords will generate additional income from the system.
Metergrid’s platform streamlines this system, allowing landlords to charge tenants based on their electricity consumption. The platform offers flexibility to landlords as they only pay if a tenant joins the energy project.
Metergrid claims that its platform can reduce operating costs by up to 80 per cent. It also assures a legally secure billing system for parties involved in the energy transaction.
Metergrid’s growth traction
The startup expects a “seven-figure” annual turnover by the end of 2023. It also anticipates serving 25,000 apartment residents with renewable energy this year. Metergrid says there is a surge of demands from landlords and tenants for green electricity.
Certain regions in Germany, including Baden-Württemberg and Berlin, also mandate solar-power installations in new buildings. New rules have been put in place to further boost the development of this sector, too.
“By 2028, we want to equip six million multi-apartment buildings,” says Johannes Mewes, co-managing director of Metergrid. “For this, metergrid provides a scalable solution for landlords, tenants and solar installers.”
Metergrid’s growth potential and the co-founders’ industry expertise attract investors in its latest fundraising.
“Johannes and Julian are an outstanding founding team with not only experience and vision, but also excellent execution skills. We are very proud that they have chosen us as their partner,” says 468 Capital senior associate Bardo Droege, who will also join Metergrid’s advisory board.