Omnidian, the only nationwide provider of residential and C&I solar system protection plans and performance guarantees, today announced a successful $15 million capital raise. The round was led by IA Capital, a New York-based insurtech venture capital firm. Additional investors in the round include the venture arms of major utilities Evergy, National Grid (National Grid Partners) and Avista Corp, as well as investments from Blue Bear Capital, Congruent Ventures and City Light Capital.
With this injection of capital, Omnidian will continue to support its multiple Fortune 1000 clients’ residential lease portfolios and grow its Elite Dealer Program, which allows residential solar dealers to include Omnidian’s comprehensive system protection and cash-back performance guarantees for all cash and loan customers for just $300 for the first year. By bundling this service, Elite Dealers can differentiate themselves in the market and offer customers cash-in-hand protection for any unexpected dips in annual system performance. Homeowners are able to renew their subscription to the program for under $13 per month.
“We know that risks associated with solar systems underperforming can keep potential solar purchasers from taking the plunge,” said Mark Liffmann, CEO at Omnidian. “Home and business owners want the assurance that solar will deliver as promised, and Omnidian’s performance guarantee gives consumers that peace of mind. We look forward to working with our investors and leading dealers across the U.S. to accelerate the adoption of solar as it moves into mainstream markets.”
A tectonic shift in the solar industry backs Omnidian’s expansion. In recent years, solar loans emerged as the predominant financing solution for residential solar systems, and today, nearly 70 percent of all solar purchases are made through cash and loan payments according to Wood Mackenzie Power & Renewables. Omnidian’s new Dealer Program fills a major gap in the modern solar market by providing professional 24/7 monitoring, service alerts, and a cash-back performance guarantee to new solar homeowners. This capital infusion will propel Omnidian into new geographies across the country, including NY and CA, and expand the company’s reach to dealers representing over 75 percent of the U.S. solar market. Omnidian also serves the residential lease portfolios of its Fortune 1000 clients nationwide and is responsible for over 75,000 residential solar systems today.
“As the utility business model continues to evolve, we see major business opportunities for companies that are helping to smooth the transition to a smart, distributed grid,” said Ashwin Shashindranath, managing director for Evergy Ventures. “Omnidian is playing an important role in the growth of distributed solar energy as customers increasingly seek to control their energy futures. Firms like Omnidian that are able to de-risk these new smart energy solutions for homeowners will have a distinct advantage in the market.”
“Omnidian has the market insight to recognize that asset management solutions are necessary for solar to reach the mainstream,” said Dillon McDonald, Vice President of Incubation at National Grid Partners. “At National Grid, we strive to stay a step ahead of emerging trends in distributed generation expansion and information technology, and we see the opportunity for management solutions like Omnidian’s to contribute to a more well-balanced and efficient grid in the long-term.”
Beyond solar, insurtech investors like IA Capital understand the potential for Omnidian to create new premium categories for the insurance industry through proactive monitoring and performance guarantees for the entire Internet of Things consumer device market.
“IA Capital sees tremendous value in Omnidian’s team and technology platform. We believe they’re poised to not only become the dominant solar performance assurance provider in the United States, but also expand their services to disrupt market verticals outside of solar,” said Rick Viton, Partner at IA Capital. “We look forward to leveraging our insurtech expertise and relationships to help them grow their business in the coming years.”
If you are a solar dealer interested in offering Omnidian’s protection plans to your solar customers through the Elite Dealer Program, please contact Tom Staples, vice president of strategic alliances, at firstname.lastname@example.org for more information.