“Empowering Solar Power in Spain: SolarMente, with Support from Leonardo DiCaprio’s Backing”

Solar is becoming increasingly popular as a clean and renewable source of energy, and the EU is taking steps to harness this power to reduce its reliance on fossil fuels. This is all part of the REPowerEU plan, which includes a proposal to require rooftop solar panels on most new and public commercial buildings by 2026.

While this plan is commendable, not all European countries have equal access to sunlight. Spain, for example, is one of the sunniest countries in Europe with peak sun hours comparable to the U.S. West Coast. However, when it comes to installed solar panels, Spain lags behind countries like Germany and the Netherlands. This could be due to a previous “sun tax” that was in place until 2018, discouraging solar installations in the country. But now, several startups are seizing the opportunity to make solar power a mainstay in Spain.

Among these startups is Barcelona-based SolarMente, founded by CEO Wouter Draijer and Victor Gardrinier. Draijer was inspired to start the company when he flew over Barcelona and noticed the lack of solar panels on Spanish rooftops compared to his home country, the Netherlands. So he teamed up with Gardrinier, a French national with an impressive educational background, to launch SolarMente.

Initially, SolarMente focused on the installation of solar panels in Spain. However, due to the pandemic, the company shifted to offering a solar energy management system. This decision proved wise, as there are already specialized companies in the panel installation market, and the decreasing cost of panels may make DIY projects more appealing to homeowners. The company faces competition from startups like Lumio Solar, which won an award for sustainable startups in Madrid in 2023, and Tornasol, whose solar kits can be paid for monthly through the BNPL platform SeQura.

Draijer explains that “solar is not a product” in Spain, meaning that people are more interested in the benefits of solar energy rather than owning the panels themselves. This is why SolarMente offers subscription-based energy management services, providing solar panel installation at no upfront cost. And instead of focusing on apartments, the company targets individual houses due to regulatory ease and greater potential.

But SolarMente’s offerings don’t stop at solar panels. As Draijer states, “we start with solar, but most of our customers can come back to us because we analyze their data, and we put a battery and EV charger, a heat pump, and then we start managing that energy.” This comprehensive approach has caught the attention of actor Leonardo DiCaprio, who recently invested in SolarMente, his first investment in Spain.

One reason for DiCaprio’s investment may be SolarMente’s focus on solar arbitrage. This refers to the price difference between buying energy from the grid and selling energy back to the grid. To address this issue, SolarMente offers an energy management app that helps homeowners decide when to consume or sell the energy generated by their solar panels.

SolarMente’s CFO Gardrinier is responsible for fundraising and explains the company’s financial journey so far. The first $2 million came from a seed round, followed by a larger round in 2023 to finance solar installations through debt. This allowed SolarMente to prove that solar can be offered as a subscription service at the cost of a gym membership, making it accessible to all.

DiCaprio’s investment is part of a larger seed round focused on launching SolarMente’s super app for home energy management. And it’s no surprise that DiCaprio chose to invest in a green tech company, as he has been vocal about his concerns over climate change and has invested in other sustainable companies like AllBirds, Beyond Meat, and Cruz Foam.

Interestingly, DiCaprio also previously invested in another Y Combinator graduate, Bright, which installs solar power in homes and businesses in Mexico. Like SolarMente, Bright focuses on providing affordable solar options to consumers. Could these two companies partner up in the future? Only time will tell.

SolarMente’s subscription-based model and holistic approach to energy management are still in their early stages but have potential for significant growth as they expand across Spain, where this service is now available nationwide. With Spain’s high amount of sunlight and need for accessible renewable energy, SolarMente is well-positioned for success. And in addition to reducing stress on Spanish households, their approach can also contribute to increasing EV adoption, another area in need of improvement in the country.