Sunhero, a residential solar energy business based in Barcelona, has raised €10m in funding to scale its operations in Spain, which the company claims is one of the fastest-growing solar markets in Europe. The funding round was led by Planet A and Vorwerk Ventures, both based in Berlin, along with Redstone, All Iron Ventures, and Speedinvest. Despite being one of Europe’s sunniest countries, Spain has fewer homes with solar installed than the UK or Germany, which Sunhero aims to address with its solar installation and management services.
Sunhero has raised €10m in funding, which will be used to develop its software and expand its product portfolio to include electric vehicle (EV) chargers. The company also plans to train more solar installers, as the talent pool in the early-stage residential solar market in Spain is limited. The funding round was led by Berlin-based climate tech VC Planet A and consumer-focused firm Vorwerk Ventures, along with Redstone, All Iron Ventures, and Speedinvest.
In addition to the lead investors, Sunhero’s €10m funding round included participation from other firms such as Redstone, a multi-sector venture capital firm headquartered in Berlin, All Iron Ventures, a Bilbao-based firm focusing on early-stage startups, and Speedinvest, a Vienna-based early-stage firm. The funding will be used to develop Sunhero’s software, broaden its product portfolio, and train more solar installers.
Despite being one of Europe’s sunniest countries, Spain has fewer homes with solar installed than the UK or Germany, partly due to a 2015 policy known as the “sun tax,” which taxed individuals with solar panels who wanted to sell power back into the grid. Since the tax was repealed in 2018, Spain has become one of the fastest-growing solar markets in the world, and startups like Sunhero, Solarpack, Powen, and Otovo are addressing the solar installation market in the country. Sunhero hopes to differentiate itself by leveraging its software and product innovation, as well as its “German operational excellence.”
Sunhero’s funding round comes at a time when the residential solar market in Spain remains highly fragmented, with most solar installations being done by small, local companies. Sunhero’s CEO, Christopher Cederskog, sees a big opportunity in the market and plans to use the funding to expand the company’s product offerings, develop its software, and train more solar installers. While there are challenges with finding the right talent in Spain, Cederskog believes that the country presents a significant opportunity for companies like Sunhero that are offering clean solar energy to household consumers.
